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Level 2
April 22, 2021
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Remote Work CA/VA

  • April 22, 2021
  • 1 reply
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Hi, 

 

 I will be working 100% remote for CA based company, but I live FT in VA. Which state will I be taxed in? Or will it be both.. I am trying to figure out if I will also be filling 2 separate tax returns as well. All new to me!

 

Thank you for your time!

    Best answer by DanielV01

    You will only be taxed in Virginia.  Although there are states that do consider a nonresident teleworker to be earning nonresident income, California is not one of them.  And even if they did, California and Virginia have a "reverse credit" agreement (which is a hybrid reciprocal agreement) that would make all of your income taxable in Virginia anyways.  You are wise to ask the question, but in this case, you will only be taxed in and only have to file for Virginia.

    1 reply

    DanielV01
    DanielV01Answer
    Level 15
    April 22, 2021

    You will only be taxed in Virginia.  Although there are states that do consider a nonresident teleworker to be earning nonresident income, California is not one of them.  And even if they did, California and Virginia have a "reverse credit" agreement (which is a hybrid reciprocal agreement) that would make all of your income taxable in Virginia anyways.  You are wise to ask the question, but in this case, you will only be taxed in and only have to file for Virginia.

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