DC/VA Reciprocity

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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?

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ColeenD3

Alumni - Intuit

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

Jellybean12Author

Level 2

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.

JotikaT2

Alumni - Expert

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.

D-40 lines