DavidS127
Expert Alumni

State tax filing

Yes, you have Virginia source income and must file a VA nonresident tax return according to the Virginia instructions for Nonresidents at this link:

 

"Virginia source income includes income passed through from a partnership, S corporation or limited liability company that does business in Virginia."

 

And yes, the reciprocity does not apply because the K-1 income is not considered wages.

 

Note, however, that you are eligible for a credit on your Maryland resident tax return for the taxes you pay to Virginia on the "same dollar of income".

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