I worked in VA and lived in DC. My employer withheld VA income tax which is being refunded. I dont qualify for the double tax credit in DC, correct?

[DanielV01 · Accepted solution]

You are correct.  DC and Virginia have a reciprocal agreement, that if you live in DC and work in VA, you are taxed where you live, DC.  The double-tax credit applies when you work in a state (NJ would be an example) that does not have a reciprocal agreement with DC.  Work there is taxed in both places, but DC gives you a credit for the tax you pay to NJ on that income.  But in your case, you must request the refund from VA, but then you pay tax to DC.

Having said this, you may submit a form to your VA employer so that DC tax instead of VA tax is withheld.  To do this, see this FAQ on reciprocal states:  https://ttlc.intuit.com/replies/4776822