VA Part Year Resident

[Ted-Fred]

We were part-time residents of VA in 2025 and want to file a joint return. The VA state tax program splits our income based on the amounts reported as VA income on our W-2’s. Those amounts are shown accurately on the Schedule of Income. However, the total of those two amounts is inaccurate on line 7 of form 760PY. In brief, the Schedule of Income does not accurately transfer to Form 760PY.  

[DaveF1006]

Line 7 of Form 760PY should reflect your full Virginia Adjusted Gross Income (VAGI), not just the total of your Virginia W-2 wages. Virginia’s instructions ask part-year residents to allocate all income types—not just wages—to the time lived in Virginia or to Virginia sources. This includes:

1. -W-2 VA wages, which are only part of the total. 
2.  Other income like interest, dividends, pensions, business income, and capital gains, also needs to be allocated
3.  Any adjustments to income, which must be assigned as well