Do I have to file a VA state tax return even if no income was earned while a VA resident?

[michael-joseph-h]

I moved to Virginia at the beginning of December 2016 but my first paycheck wasn't until Jan 2017 and my employer did not provide a W2 for 2016. When I go through the TurboTax process everything for the state return is $0, $0, $0, etc. but TurboTax seems to want to force me to file anyways.

[SweetieJean]

Any VA income of any type in 2016?

[Jimesa]

No, you do not have to file the VA return if no income was earned in that state. Simply do not file it.

You may be able to remove it from your account all together. See the link below for more information:

https://ttlc.intuit.com/replies/3301384

[asmith14]

I filed a Federal and NY 2014 return through TurboTax after moving from Virginia to NY for a job. I didn't have any VA income in 2014. I paid for the Audit Defense as well. Comments such as this one, in addition to the form filling software itself, say that I didn't need to file a state income tax return with Virginia if I had not earned any income there. So I didn't file one. However, Virginia is now auditing me and trying to charge me $4k in taxes for that year. I am trying to engage the Audit Defense product I paid for, but they are saying this is not their problem and not covered by Audit Defense. What am I supposed to do?!? If I contact the IRS I forfeit my Audit Defense, but Audit Defense have taken over a week just to tell me they won't help and now I don't know what I'm supposed to do. NOT HELPFUL TURBOTAX!

[TomD8]

Were you a resident of VA for any portion of 2014?  If so, ANY income you had during the time you were a VA resident would be taxable by VA, regardless of where you earned it.  After you became an NY resident, only VA-source income would be taxable by VA.

[asmith14]

@TomD8 : What you're saying directly conflicts with what TurboTaxJimesa said above... I earned income in 2014 but it was all in NY, after I moved to NY. I didn't make any money in Virginia in 2014 and didn't earn anything while living there. I was in college and lived in Virginia for the first five months of the year.

[SweetieJean]

@TomD8 See @asmith14 other post here:
<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/4483664-auditdefense-not-helping-with-claim-regarding-a-state-tax-...>

[TomD8]

@SweetieJean   Thanks!
@asmith14   If you had no earnings as a VA resident in 2014, and you didn't file a VA tax return for that year, what is it that VA is auditing?

[asmith14]

They're saying I should have filed a VA tax return given information they may have received from the IRS. It's pretty vague; they just sent me an assessment of $4k ($2.2k of which is actual tax they think I owed) but didn't explain or document that tax liability. Is that not an audit?

[TomD8]

You need to explain to the VA tax authority that you established your domicile (your permanent home) in NY in 2014 - if that's what you did - and that all your 2014 income was earned from NY sources after you established your NY residency. You'll likely need to show them your NY tax return.

You may want to review VA's residency rules: <a rel="nofollow" target="_blank" href="https://www.tax.virginia.gov/residency-status">https://www.tax.virginia.gov/residency-status</a>