https://ttlc.intuit.com/community/state-taxes/discussion/do-i-include-my-wifes-w-2-from-virginia-even-if-shes-filing-form-763-s/01/718189#M33503 Thu, 06 Jun 2019 14:50:44 GMT rpierce1992 2019-06-06T14:50:44Z https://ttlc.intuit.com/community/state-taxes/discussion/do-i-include-my-wifes-w-2-from-virginia-even-if-shes-filing-form-763-s/01/718189#M33503 Thu, 06 Jun 2019 14:50:44 GMT https://ttlc.intuit.com/community/state-taxes/discussion/do-i-include-my-wifes-w-2-from-virginia-even-if-shes-filing-form-763-s/01/718189#M33503 rpierce1992 2019-06-06T14:50:44Z https://ttlc.intuit.com/community/state-taxes/discussion/yes-for-your-federal-return-the-irs-will-tax-all-of-you/01/718191#M33504 <P><B>Yes for your Federal Return.&nbsp;&nbsp;</B>The IRS will tax all of your income regardless of the state in which you earned it.&nbsp; The 763-S is to request that the Virginia state tax withholdings be returned to you because they were mistakenly withheld, most commonly because you live in a reciprocal state with Virginia or you are Active Duty Military stationed in Virginia.&nbsp; But for the IRS this does not matter, as they tax all of your worldwide income.&nbsp; It does matter on your state return, however, so here are the other possibilities with that.<BR /></P><UL> <LI> <B>Reciprocal state</B>.&nbsp; That also is a yes.&nbsp; Your state is also allowed to tax all of your income no matter where you earned it.&nbsp; The reciprocal agreement with Virginia means that you were supposed to have taxes withheld for your home state, and not Virginia.&nbsp; If this is your case, you will want your wife to file a form with her employer that stops taking out Virginia tax but rather only to your state.&nbsp; This way you do not need to file anything for Virginia in the future.</LI> </UL><UL> <LI> <B>Active duty Military</B>.&nbsp; It depends on your SLR.&nbsp; Your wife's income is also potentially taxable to your SLR, if that state has a state income tax.&nbsp; There are a number of states that have no income tax at all, and a number that do have income tax but do not tax active duty income.&nbsp; If you are in one of the states that does have an income tax but does not tax active duty, your wife's income must be included on the return.&nbsp; Again, she may file a form with her employer to have the taxes taken to the correct state and not Virginia.&nbsp; However, if your state does not have an income tax, there is nothing to report except to advise the employer to stop withholding VA tax.</LI> </UL> Thu, 06 Jun 2019 14:50:46 GMT https://ttlc.intuit.com/community/state-taxes/discussion/yes-for-your-federal-return-the-irs-will-tax-all-of-you/01/718191#M33504 DanielV01 2019-06-06T14:50:46Z