MindyB
Expert Alumni

State tax filing

Yes, this will need to be corrected going forward, but it cannot be changed now. If the issue is just payroll did not update your address, you can contact payroll to let them know.  However, if you continued to work in DC, file Form D-4A with your employer to stop DC withholding.  DC and Virginia have a reciprocal agreement, meaning you pay taxes to your home state of Virginia and do not need to file in DC.

 

Now, to correct the issue for 2024, that you are having, you will need to file a non-resident DC tax return and a resident VA tax return. You will request a refund of all of the DC tax paid, and you will owe tax in Virginia. Since DC and VA have a reciprocal agreement, there is no credit for taxes paid to other states.

 

Here is a TurboTax article you may find helpful: How do I file a nonresident state return?