This is the first time I'll be filing my taxes as an independent and I thought I had everything figured out until this morning. I left a part-time job in VA early January 2024 and moved to WV. I didn't even realize I received a paycheck from my previous employer last year until I got a W2 from them. I am well under the threshold for filing state taxes in VA (I was paid < $1000), and no federal tax was withheld (social security and Medicare taxes were taken out, not sure if that applies here, please correct me if I'm wrong.) A couple bucks in state taxes were paid, and a small amount was put into a 401k. Do I need to add those wages and 401k payments to my federal return even though I don't need to file a VA return?
Q. Do I need to add those wages and 401k payments to my federal return even though I don't need to file a VA return?
A. Yes. Your state situation is irrelevant for the federal filing requirement. All income must be included on your federal return, especially if on an IRS form (W-2 or 1099). The W-2 is the most monitored of the IRS forms.
Q. Do I need to file a Virginia State return.
A. Yes. You're misreading the VA filing threshold.
"You must file a VA return if you have Virginia adjusted gross income equal to or greater than the amounts below: Single or married filing separately: $11,950". "Virginia adjusted gross income" includes all income, regardless of when and where earned. The VA tax form will then prorate your income by state, so that you will only pay a small amount of tax. You could actually owe VA a couple of bucks more, in tax, at filing time if only a "couple of bucks" was withheld.
Q. Do I need to add those wages and 401k payments to my federal return even though I don't need to file a VA return?
A. Yes. Your state situation is irrelevant for the federal filing requirement. All income must be included on your federal return, especially if on an IRS form (W-2 or 1099). The W-2 is the most monitored of the IRS forms.
Q. Do I need to file a Virginia State return.
A. Yes. You're misreading the VA filing threshold.
"You must file a VA return if you have Virginia adjusted gross income equal to or greater than the amounts below: Single or married filing separately: $11,950". "Virginia adjusted gross income" includes all income, regardless of when and where earned. The VA tax form will then prorate your income by state, so that you will only pay a small amount of tax. You could actually owe VA a couple of bucks more, in tax, at filing time if only a "couple of bucks" was withheld.
Ah, okay. I thought 'Virginia adjusted gross income' was only what I earned while in VA. I've found there is a part-year resident form as well, didn't know that was a thing since WV just has one form regardless of length of residency. Thanks for your quick response! 🙂