topic Re: DC/VA Reciprocity in State tax filing

DC/VA Reciprocity

Jellybean12 — Tue, 13 Apr 2021 17:57:43 GMT

I just want to clarify something, since I didn't know until I filed my taxes this year that DC and VA have an agreement regarding state taxes. I lived in DC and worked in VA, and all of the taxes taken out of my paycheck were DC taxes (noted in box 15 of my W-2). I noted in my DC state return that I did make money in other states because that was truthful and I didn't put two and two together; as a result, TurboTax is telling me I need to file a nonresident income tax form (form 753-S or something like that?).

I did call the VA tax department and they said if there were no taxes taken out for VA I don't need to file a tax return, but I'm a little paranoid that I need to file something because TurboTax says it needs to be filed and I do not want to get in trouble for not doing so. Help?

Re: DC/VA Reciprocity

ColeenD3 — Tue, 13 Apr 2021 18:16:37 GMT

If the state of VA told you that you don't have to, then you don't have to.

Exceptions for Certain Nonresidents If you are a nonresident of Virginia who commutes daily to work in Virginia from Kentucky or the District of Columbia, you do not have to file if: • You have no actual place of abode in Virginia at any time during the year; • Salaries and wages are your only Virginia source income; and • Your salaries and wages are subject to income taxation by Kentucky or the District of Columbia.

763 Instructions

Re: DC/VA Reciprocity

Jellybean12 — Tue, 13 Apr 2021 18:28:44 GMT

Thank you for the response! It doesn't make sense to me to file anything for a state that didn't take any taxes from me, but I don't claim to understand the thought process of the government. Do I need to amend my DC return? I saw in some other posts on this subject that I should have clicked "no" on the question of making money in other states because of the reciprocity. Which I didn't do, as mentioned.

Re: DC/VA Reciprocity

JotikaT2 — Tue, 13 Apr 2021 18:45:48 GMT

Go ahead and review your DC tax return and make sure it is prepared as a full year resident return on Form D-40. Look at page 1 and make sure the section under question #2 is not marked as being a part-year resident.

As long as this section isn't completed, and all of your income for your federal return flows into your DC return without any deductions on page 2, line 8 under Subtractions from DC Income, your return would not need to be amended as there would not be any changes.

See the attached link for more details on when you may need to amend your return.

Do I need to amend?

Re: DC/VA Reciprocity

Jellybean12 — Wed, 14 Apr 2021 18:27:09 GMT

My return IS marked as being a part-year resident because I moved to DC from NY in March. Unrelated to working in VA.

Re: DC/VA Reciprocity

DMarkM1 — Wed, 14 Apr 2021 18:45:35 GMT

In that case Part-year is correct on the DC return. As long as all of your DC income is on the DC return you are good to go. No need to amend.

You still do not need to file in VA. You are correct you should not have checked that you made money in VA, but all that did was prompt TurboTax to generate the VA non-resident return which you didn't need. Just don't file it.