State Income Tax

[TFMUNIZ]

In 2021, I worked for a company with offices in the state of Virginia. For the full year, I paid VA state income tax over the wages earned. Given the COVID pandemic, I was allowed to work remotely for the full year. I resided in VA & worked remotely for the first 4 months of 2021 and, then, relocated to the state of Delaware and worked remotely from there. Since I was a part-time resident (resided only 4 months in VA), the state of VA, and based on what I read on Turbo Tax, establishes that I'll only have to pay taxes on the money I received while living in VA. So, since I only worked in VA for 4 months but were deducted the state taxes for the full year, TT indicates I have a refund. Then, in the state of DE, I lived for the other 8 months of 2021 but the source of the income was from VA. Given this, TT indicates that I don't owe any taxes in DE since I didn't earn any income from a DE source. Does this sound right? I'm concerned that I'm missing something here because I'm not having to pay income taxes for the full year in VA since I moved and zero tax in DE. After all, I didn't earn income there. Can someone help clarify this?   

[ErnieS0]

No. A Delaware resident pays tax on income earned while living in Delaware.

Delaware law provides that compensation income is sourced to Delaware if it is “for personal services … a. rendered in this State, or b. attributable to employment in this State and not required to be performed elsewhere.” 30 Del. C. § 1124(b). 

SUBJECT: TREATMENT OF WAGES FROM REMOTE WORK IN 2020

A part-year resident can file as a nonresident, meaning only income earned in Delaware is taxed. If you file part-year as a resident, DE will compute your base tax as if all your income were earned in DE and you'll pay tax on the DE percentage of base tax, which would be a higher rate. The tax is higher on 10% of $100k for example than the tax on $10k.