I am a resident of Connecticut and have a new job in Virginia. Where do I pay state taxes?

[eli104]

I was a student in DC until July and a resident of Connecticut. Since September, I have a job in Virginia and moved to another apartment in DC, but am still considered a resident of Connecticut. So where do I file for tax refunds or payment?

[BillM223]

In general, you pay taxes in the state where you live and in the state(s) where you work.

You are correct to be cognizant of domicile. A college student typically is assumed to still be domiciled at his/her parents' home, when away at college.

It sounds like you need to file a resident CT return. You also need to file a non-resident return in VA. TurboTax will see the state code in boxes 15-17, which undoubtedly has VA on it.

It does not sound like you need to file a DC return, since you say you still domiciled in CT, and (I assume) are still working in VA.

Why are you still a resident of CT when you appear to have left home for a job?

[elisherer]

OK, full disclosure, this is my daughter I am asking about.

• She was considered a full-time student more than half of 2024 getting her Masters in Special Education in DC.
  • During that time, she worked in a school and received a W-2 for that work in DC
• She then started a teaching job in Virginia at the end of August and moved to another apartment in DC. 
  • That job gets her a second W-2, but to my understanding, she is still a resident of CT since was a student until August, and maintains her address as our home in CT, votes in CT, and has a CT driver's license (including car registration and insurance).

I know next year will be different... it's just how to handle two non-resident forms this year, and whether Connecticut will want to tax some of that earned income that VA and DC refund to her?

[BillM223]

She is considered a resident of CT until she take positive steps to establish a domicile elsewhere. As you note, these positive steps are things like a drivers license, voters registration, owning a home, and where you tell people your mailing address is.

As you can see, there is no single test for domicile, but it is the preponderance of items.

So, she has two W-2s, right? One has a box 15 with a reference to DC and the other with a reference to VA, right? This will trigger the two non-resident returns for DC and VA in TurboTax.

But she will also have to file a CT return, this will be triggered by stating that her residence is in CT in the Personal Info.

In TurboTax, enter the non-resident state(s) first, then the resident state. The taxes paid in DC and VA will become a credit on her CT return. See line 7 on the CT-1040. This is typical of how states deal with double taxation on the same income - they let one state tax the income and let other states create a credit for the taxes paid.

[eli104]

And that's where I was confused... since when I did all of that, TurboTax online said she would get non-resident refunds from both DC and VA but then CT would ask to Pay some taxes on the money earned elsewhere. (Never had that before. While in school she worked in DC (no state tax) and Maryland.

Thanks...

[BillM223]

Like many states, CT starts out with federal income, so income from all states is taxed. Then you some things and subtract some things and you end up with CT adjusted gross income, which you are taxed on.

Can you see your CT return? Is there an entry on line 7 on CT-1040?

I don't understand what you mean about DC in prior years; DC certainly had an income tax.

[eli104]

I will certainly check the return line by line as it is completed... As for "past DC," the reference was to my daughter's college years when she had jobs in both DC and Maryland, but as a student did not make enough to have to pay the taxes that were already withheld. So she filed a non-resident return and received a refund of those taxes paid.