You might need a tax professional to sort that out (not a seasonal storefront.). VA and DC are "reciprocal tax states". as such, you cannot get a credit in one of working in the other. So go back into the interview where you put in the credit for taxes paid to another state (you have to say yes the first time thru to correct it) and delete, or blank out that DC credit you put in....
...........your situation can be complicated.
1) you worked at one job while living in VA, then moved to start another job in DC.. No tax credit allowed because VA only taxed VA income, and DC only taxed C income.
2) You worked in DC while living in VA, and the employer withheld VA taxes Then moved to DC. and remained at the same job. You let your employer know of your move, and they started withholding DC taxes. Your W-2 breaks up the state income into two rows for boxes 15-to-17...one showing only VA income/withholding and the other showing only DC income/withholding . Again...no credit allowed since VA only taxed VA income and DC only taxed DC income.
3) same as #2, but worked for the same employer located in VA. Again...no credit allowed since VA only taxed VA income and DC only taxed DC income
4) You worked at the same employer....but didn't tell them that you moved...so they withheld VA taxes for the whole year. Now that's a problem, because after you moved, the employer needed to start DC withholding, and didn't. In the DC and VA tax returns, you need to allocate the income that was earned in each state according to when it was received. and get a refund form VA and pay DC separately. BUT, no credit allowed for taxes paid to another state.
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SteamTrain
SuperUser 2 years ago
