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Returning Member

VA Taxes

I worked and lived in VA for the first 145 days in 2019 then moved to DC but continued working in VA. Do I need to file both VA and DC state income 2019 tax forms? My employer withheld only DC taxes after I moved to DC. 

3 Replies
KarenJ2
Expert Alumni

VA Taxes

Yes,  VA and DC have reciprocal agreements, however if you moved from one to the other you will need to file 2 part-year state returns. As long as the amounts on your W-2 seem correct for the VA and DC allocation, you don't have to do anything.  TurboTax will pick up the amounts from the W-2.

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bspace
Returning Member

VA Taxes

Thank you. I prepared part year residency returns for both VA and DC and included the allocated income/withholding taxes for each reported on my W2, but when I perform error check for the VA  state, I get an error message "Sch OSC/CG state code must be entered" when the code is left blank. If I change the code to "DC" the error message is "DC code is not valid". I don't get any error messages for the DC state return. When I try to revisit  in Turbo Tax  the VA state section "Credit for Taxes Paid to Other States" to make any changes, Turbo Tax doesn't allow me to revisit that section, as if I'm locked out. How should I proceed with the VA return?

ThomasM125
Expert Alumni

VA Taxes

DC and Virginia are reciprocal states, which means you don't have to pay tax in either state on income earned if you work in one but live in  the other. So, you can't get credit for tax paid to DC when you were living in Virginia, because DC does not tax your income if you live in Virginia.

 

So, you can't take the credit for tax paid to another state, that is why you can't enter the DC code when you are a VA resident.

 

The simplest way to resolve this issue would be to delete the state returns and start them over.

 

If you had tax withheld by DC on income you earned while a resident of Virginia, you can indicate that on your DC return and you will get a refund from DC of the tax withheld.

 

 

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