Lived in MI and got a job in TX and moved. I trained in VA first for 2 months as part of my new job. Only MI was withheld for the training. What States do I need to file

[TomD8 · Accepted solution]

You definitely need to file in MI.  MI can tax all your income until the day you began living in TX.

You also need to file a non-resident VA return if your VA adjusted gross income exceeds the filing threshold for your filing status.  Here are the 2017 VA filing thresholds:

Single ..................$11,950

Married filing a joint return (both must  have Virginia Source Income) ............................$23,900

Married, spouse has no income from  any source ..........$11,950

Married filing separately (on separate  forms) ..................$11,950

TX does not have a personal income tax.

[traveler1]

What is the Virginia AGI though?  Is that your whole AGI for the whole year or just for the time you were in Virginia (prorated)?

[TomD8]

For part-year Virginia residents, it is the calculated amount from line 10 of Virginia Form 760PY: <a rel="nofollow" target="_blank" href="https://www.tax.virginia.gov/sites/default/files/taxforms/individual-income-tax/2017/760py-2017.pdf"...>

[traveler1]

Thanks!  What about for Virginia nonresidents?  Are you a nonresident if you didn't live there but only went there for a short time for training?  Or are you actually a part-year resident in that case?  <a rel="nofollow" target="_blank" href="https://www.tax.virginia.gov/residency-status">https://www.tax.virginia.gov/residency-status</a> makes it sound like you're not a part-year resident if you weren't ever intending to be a resident, but the nonresident filing doesn't seem quite applicable either.

[TomD8]

If you were in Virginia temporarily for work or school, and your domicile (your permanent home) is in another state, you are a non-resident of Virginia.  Virginia can tax non-residents on income from physically working in Virginia, unless they are residents of a reciprocal state.
If you moved your domicile into or out of Virginia during the tax year, you are a part-year resident of Virginia.
Here's a link to the non-resident VA tax return form:  <a rel="nofollow" target="_blank" href="https://www.tax.virginia.gov/sites/default/files/taxforms/individual-income-tax/2017/763-2017.pdf">h...>

[traveler1]

Thanks.  Yes, that is my situation -- domicile in another state, but in Virginia temporarily for work or school.  However, when I went through the nonresident instructions I didn't see the same calculation for VAGI (i.e. AGI minus money you made outside Virginia).  If that is what VAGI means, and my amount is < $11,950, then I don't need to file nonresident at all.  In the nonresident form it looks like VAGI is basically your whole AGI, but in the part-year resident form, it looks like it's only the time you were in Virginia.  What am I missing?

[TomD8]

Like some other states, VA determines your tax rate based on your total annual income (as if you were a VA resident), and then applies that rate to your Virginia-source income.  Page 2 of VA Form 763 shows the non-resident allocation calculation.  TT should do all these calculations for you.  Follow the instructions in this FAQ:  <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/1901271-how-do-i-file-a-nonresident-state-return">https://ttlc.int...>

[traveler1]

Thanks for keeping on answering my questions.  I was trying to avoid filing if I didn't have to but it seems like maybe I have to.  However, I find it really odd that the "VAGI" is different if you're a part-year resident or a nonresident, according to the forms.

[TomD8]

The difference is due to this:
A VA non-resident can only be taxed only on their VA-source income.
A VA part-year resident can be taxed on ALL the income acquired during their period of VA residency, regardless of its source (including, for example, dividends, interest, capital gains).