I’m a DOD civilian in Germany and paid VA tax on my salary, even though my W2 states Cleveland, OH. I own a rental property in VA. Should I adjust my returns? Am I liable

[Liz1]

Only own a rental home in VA, lived in Germany since 2013. Worked in VA in 2012. I continue to pay state taxes on federal income not earned in that state. Should I amend my past returns?

[MichaelL1]

What state are you a legal resident of?

[Liz1]

Hi. My last state was VA before Germany but I move to Rhode Island in July and this will be my permanent residence. I only have the property in VA as rental, but the TurboTax software says I am only taxed on income earned in VA. This is the rental income obviously, but I am not sure if my salary is taxed in VA when it wasn’t earned there. Technically, the W-2 is for OH, which handles all payroll for DOD civilians.

[MichaelL1]

The payroll office where paid out of does not matter.  The state where you are a legal resident of before going overseas would be the state of residence unless you established residency in another state. Where is driver's license, where are you registered to vote?  This is what matters.  If VA then VA would be resident state and tax all the income.

[Liz1]

Thank you!

[MichaelL1]

going to put in answer below so others know this one has been taken care of. Thank you for support our military overseas.

[MichaelL1 · Accepted solution]

The payroll office where paid out of does not matter.  The state where you are a legal resident of before going overseas would be the state of residence unless you established residency in another state. Where is driver's license, where are you registered to vote?  This is what matters.  If VA then VA would be resident state and tax all the income.