During 2020 I worked all year at a second home I've owned in VA for several years, and during 2020 I changed my permanent domicile from DC to VA. I got a VA license, voter registration, bank accounts etc. But I kept the condominium that I owned in DC for all of 2021 - spent time there, but less than 183 days. I now understand that I may be a DC "statutory resident" because I still own the condo and have therefore "kept an abode" in DC.
Since I will have to file in VA as a resident, (and believe I'll get some type of credit for whatever taxes I will have to pay in DC) I was wondering how that will work? Have only W-2 income and some capital gains. Main concern: Should I expect the total combined taxes I pay to be higher than DC's rates, (which are higher than VA) because I'll be paying in both jurisdictions? Any thoughts appreciated.
I am answering presuming that you work in Virginia as well, because you state you didn't have 183 days of physical presence in DC. I don't see a scenario in which Virginia will allow you to pay all of your taxes to DC because of reciprocity, because you are a domiciliary resident of Virginia. I am certain they will argue that they are higher up on the tax priority. And if DC also insists that you are liable to tax in DC as a statutory resident, then your recourse will be to file the DC return and claim a credit on the return for taxes paid to Virginia. I would strongly recommend that you attach a statement explaining your dual residency and mail in the DC return. In principle you shouldn't be "double-taxed". Your total tax should come to whichever of the two districts charges the higher rate. You will have an even more compelling argument if Virginia tax and not DC tax was withheld.
But feel free to provide additional details. This one is trickier because of the reciprocal agreement in place between DC and VA; usually the credit for taxes paid elsewhere does not apply.
Be aware of this, from Virginia Administrative Code 23VAC10-110-221:
"As of September 19, 1984, Virginia residents may not claim a credit against Virginia income tax for tax paid to Arizona, California, District of Columbia, Maryland, New Mexico or West Virginia since these states allow Virginia residents a nonresident credit for tax paid to Virginia."
https://law.lis.virginia.gov/admincode/title23/agency10/chapter110/section221/