I live in Virginia but work for government in DC. Do I still need to file a DC state tax return?

[DS30 · Accepted solution]

No. If you live in VA, work in DC and your only source of DC income is wages, then you will not need to file a DC state income tax return. You would only need to include all income from all sources (including DC wages) on your VA resident state income tax return.

DC and VA have what is called a state reciprocal agreement. This allows nonresidents to not have state withholding taxes taken out for wages earned in the state.

Just make sure to selected "no" to " Did you make money in any other states?" under the Personal Information section in TurboTax (see screenshots)

[nera]

Thank you!

[DS30]

You are very welcome and I wish you good luck on all your future endeavors.

[dcturnbull]

Is it possible to just pay dc taxes and not va in this case since both states have reciprocity?

[TomD8]

@dcturnbull  If you are a VA resident who works in DC, you must pay VA taxes.  There is no choice involved. 

[dcturnbull]

Thx! This year I'm only a resident of VA for four months.  Will I qualify as a non-resident and be able to recover any of those taxes paid? On VA's tax website it says non-residents are those resident in VA under 183 days and not intending to stay.  I'm on a one-year assignment in DC and planning to move again next year. 

[TomD8]

@dcturnbull  If you are in Virginia only temporarily for work purposes, in what state is your permanent residence (your “domicile” in tax language)?

[dcturnbull]

We are domiciled in Florida. 

[TomD8]

@dcturnbull   If you are a FL resident temporarily living in VA, and you live in VA 183 or fewer days of the tax year, than you are a non-resident of VA and can be taxed by VA only on VA-source income.  You'll find the definition of "VA-source income" in this reference: https://www.tax.virginia.gov/residency-status#blocktabs-residency_status-3

But if you live in VA more than 183 days of the tax year, VA considers you a resident for tax purposes, even if you are domiciled in another state.  In that circumstance, VA can tax ALL your income.

[stech]

I live in VA and work in DC. When I prepare my 2019 taxes, it says I have refund for VA and owe tax to DC? Why is that? I thought I only pay/refund from VA

[DaveF1006]

Typically what happens is when you file state taxes in two different jurisdictions, you will usually owe taxes in one jurisdiction and pay taxes in the other.  Most of the time, the two amounts will offset each other.

DC and Virginia have a reciprocal state agreement whereas if you work in DC and live in any other state, no DC taxes will be withheld. To claim this exemption, you have to file form D-4A with your employer. Here is link to that form.

[kgrayson]

Hello!

I graduated from college in the spring in CA (where I was born and am from) and started working in DC in August. I moved in with my family in VA, which I intend to make my permanent home, and commuted to DC for work. I have only now realized that I filled out my W-4 in such a way that I paid CA state taxes in 2019 instead of VA taxes. So does that mean I need to file state taxes for DC, VA, and CA? In which of them am I considered a resident, part-year resident, or non-resident? I didn't have a job in CA, I hadn't lived in VA for 183 days by December 31, 2019, and I still have my CA drivers license.  

[DaveF1006]

Yes, you need to file taxes for all three states. You need to file as a part year resident for Va and California and non-resident for DC. For future reference, DC has a reciprocal agreement with every state in the union where they will not withhold taxes in DC. You will need to fill out a D-4A form to submit to your employer before this action can be completed.

[TomD8]

@kgrayson -- You don't have to file in DC if you never lived in DC.  DC income tax applies only to residents of DC.

If you never lived in DC, but your employer withheld DC taxes, file DC Form D-40B to get those taxes refunded.  Here's a link:  https://otr.cfo.dc.gov/sites/default/files/dc/sites/otr/publication/attachments/2018%20D-40B.pdf

If CA was your home state prior to your move to VA, and if you moved to VA with the intent of making it your new main home, then for 2019 you are a part-year resident of CA and a part-year resident of VA.