How do you figure taxes due in Virginia after moving to Florida in 2019. NUA question also.

[285antis]

Can you help answer the following questions:
1) We purchased our house n Florida in July of 2019. We also sold our house in Va in July of 2019. We moved our stuff to Florida in July. My wife remained employed in Va until the end of December but was allowed administrative leave starting in November. She moved full time to Florida beginning in November and we both obtained driver license and voter registration.
When can she claim Florida as her state of residence?  Can it be as early as July even though she still was employed by a VA company?
When can I claim Florida residence since I was off and on there starting in July and am retired.
2) My wife  is receiving severance pay from Dominion Energy for the 2020 tax year and is paying VA state tax on the severance pay but is a Florida resident.   Will this all be refunded next year when we file taxes since we are full time Florida residence?
3) Can you do NUA on company stock in the 401k and not pay the 10% early withdrawal penalty for under age 59 1/2 if you are over age 55 and severed from the company. The 401k in its entirety remains with Dominion. It is my understanding that over age 55 and severed from the company is an exemption to the 10% early withdrawal penalty prior to age 59 1/2 for NUA transactions.

[ReginaM · Accepted solution]

For your 2019 year, when reading the State of Virginia requirements, since both of you moved out of the stat to become a resident of another state, you will be required to file as Part Year Residents.  

A person who moves into Virginia during the year with the intent of becoming a resident, or a person who moves out of Virginia during the year to become a resident of another state, is a part-year resident for income tax purposes.  See the State of Virginia Residency Status for more information.

Next year, if you both remain residence of the State of Florida, you would owe no taxes to the State of Virginia.  

For your NUA, triggering events are death, disability, attainment of age 59½, or separation from service. If you use the NUA strategy before you reach age 59½ or have separated from service before reaching age 55, and didn’t meet any other IRS exceptions, you may be subject to a 10% premature distribution penalty tax on the cost basis.

For more information on the exclusions from the early withdrawal of your 401K, please see IRS Publication 575.

[285antis]

Do I have to file both a part year form 760PY and a non-resident form 763 since my wife was still working for a Virginia company after we moved to Florida.  Does this mean we would file status 4 for form 760PY and status 3 for form 763.

[LeonardS]

No, you only have to file Form 760PY. "...Part-Year Resident -- A person who moves into Virginia during the year with the intent of becoming a resident, or a person who moves out of Virginia during the year to become a resident of another state, is a part-year resident for income tax purposes. Part-year residents generally file Form 760PY. "  Ref: Virginia Department of Taxation