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sirianninj
New Member

I live in DC proper and work remotely from my home. I should only be paying DC taxes, correct?

My employer's payroll system currently shows me working in VA so I'm getting both VA and DC taxes taken out of my paychecks.  Just want to make sure that I'm correct in my thinking that it should only be DC taxes

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DanielV01
Expert Alumni

I live in DC proper and work remotely from my home. I should only be paying DC taxes, correct?

You are correct.  There are a few states that tax telecommuters in their state, but Virginia is not one of them.  You would only be taxed on income you earned working within Virginia, and in your case, you wouldn't pay taxes to Virginia then either.  DC and Virginia have a reciprocal agreement that states that if you commute to Virginia from DC, you only pay taxes in DC.

To get back the taxes withheld by Virginia, you will need to file a Virginia nonresident return, and then select the option marked in the screenshots below (your situation is similar to the Military Spouse situation.  As a telecommuter, you didn't physically commute to VA from DC, but VA can't tax your income anyways.  If you select the DC option, however, this is also acceptable).

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DanielV01
Expert Alumni

I live in DC proper and work remotely from my home. I should only be paying DC taxes, correct?

You are correct.  There are a few states that tax telecommuters in their state, but Virginia is not one of them.  You would only be taxed on income you earned working within Virginia, and in your case, you wouldn't pay taxes to Virginia then either.  DC and Virginia have a reciprocal agreement that states that if you commute to Virginia from DC, you only pay taxes in DC.

To get back the taxes withheld by Virginia, you will need to file a Virginia nonresident return, and then select the option marked in the screenshots below (your situation is similar to the Military Spouse situation.  As a telecommuter, you didn't physically commute to VA from DC, but VA can't tax your income anyways.  If you select the DC option, however, this is also acceptable).

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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