I am active duty military and a resident of Florida. My spouse lives and works in Virginia, but is a legal resident of Florida due to MSRRA. We received some rental income in Virginia.
When filing for Virginia State Taxes, the question is:
"Did you make money in Virginia, but never live there?"
- If we answer NO, it lists three options (What was your state of residence? Virginia/More than one State/I made money in VA but never lived there). None of these are truly correct.
- If we answer YES, it asks, "If you earned VA income OTHER than salary or wages, select None of the above". It also lists "SPOUSE COMMUTED FROM DC TO VA daily" (this is true), "MILITARY SPOUSE". It then shows the exemption as if I am requesting to get a refund from VA taxes withheld from my spouse's wages (none was withheld).
How do I accurately report the RENTAL INCOME we earned in Virginia, since my spouse does live/work in Virginia?
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You will report the rental income as a nonresident of Virginia. You will choose "I made money in VA but never lived there" in your case since your spouses SLR isn't Virginia. This question is a software question to determine which form to file, and doesn't get directly entered onto the tax return itself - so please don't worry that you will be filing incorrect information on your return.
Your situation is a little less common, so it just requires giving the answer that will get you to where you need to be - which is a nonresident return for the rental income only.
Thank you for your service!
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