Hal_Al
Level 15

Education

Q.  Do I need to pay state income taxes in VA as a non-resident and KY as a resident?

A.  No. Normally, that is how it works.  But VA & KY are reciprocal states. As a full year KY resident, you are not subject to VA income tax.  You would only file a VA return to get a refund of any VA tax withheld.

 

Q.   Do I pay KY income taxes for all my income no matter where it was earned (VA and FL)?

A. Yes, that's exactly how it works. You report all your income on your resident state return, including the income earned in the other state. Your home state calculates tax on all your income, but gives you a credit, or partial credit, for tax you paid to the other state*.

When you worked in a state without an income tax ( Florida), there will be no credit, since there was no FL tax. In other words, having worked in a state without an income tax does not get you out of paying state tax on that income, to your home state.

 

* No credit will be given in a reciprocal state situation (you have to apply for a refund). 

 

Despite only being in KY a few weeks, college students (particularly those who are still dependents) are only considered as being temporarily away from home, and are still residents of their original state.