I moved from Virginia to Washington DC last year and my wages were taxed as a Virginia resident and a DC resident. Do I need to fill out state tax forms for DC and VA?

[rodin]

I lived in VA for 9 months in 2021 and moved to Washington DC where I spent the remaining 3 months. After I moved, I was taxed as a DC resident. Do I need to file returns for both states? Do I need to divide up my wages to wages earned in VA and wages earned in DC?

[MaryK4]

Yes, you will need to file a Part-Year return for Virginia and a Part-Year return for DC.  You will report the income you made while you were a resident in each state/district.  

[rodin]

When I file the part-time returns for Virginia and DC, it says that I still owe around $6k in taxes to VA. Perhaps I am filing my state returns incorrectly.

For a part of 2021, I switched locations at my job and I lived in VA but my work location was in DC. Would this affect my returns?

Jan-Mar 2021: Lived in VA, worked in VA

Apr-Aug 2021: Lived in VA, worked in DC

Sept-Dec 2021: Lived in DC, worked in DC

[AmyC]

VA and DC have a state reciprocal agreement. See What is a state reciprocal agreement? Did you fill out the D-4A for the time you lived in VA and worked in DC? Both VA and DC require you to claim income earned while living there.

I am going to assume for my answer that you did not fill anything out. In that case, VA income would be taxed on Jan-Aug. DC income would be taxed on Sep - Dec income. The taxes paid to different areas will probably cause a tax liability in VA and a refund in DC.

You can preview your state returns.

• If you are using the online version:
  1. Go to the state return and enter 
  2. go to Tax Tools,
  3. then select Tools,
  4. select View Tax Summary,
  5. you should see your state summary, if not, look on the left side and select it.
• In the desktop program, switch to forms mode.

[rodin]

No I did not file a D-4A. Once I file it and give it to my employer, how do I update my returns in TurboTax to reflect the fact that I filed a D-4A?

Additionally, when I file my state returns for DC, it asks if I earned income outside of the state. In this case, would I answer yes for that question and enter the income I earned in VA?

[AmyC]

1. At this point, it is probably easier to forget about that form, until you move again. Just do the VA and DC as part-year residents.

2. The answer is no but let's verify the steps along the way.

As you go through the DC part year return, it asks about Subtraction From Federal Income, Part Year. It asks how much income you earned while residing outside DC. This is where you enter all of your VA income.

Continuing through, you get to the Credit for Tax Paid to Another State. You are not being double taxed on any income so there is no need to enter anything here. Answer No to Did you earn income in another state for this section. If you were to answer yes, it would ask you how much income is being double taxed by DC. Since you are splitting the wages based on where you lived, this is not the case for you.