Virginia non resident or part year resident?

[JackLord]

I have domicilary residence in Virginia (own a home there, have a Virginia driver's license) but work and live in Vermont. Am I considered a nonresident for Virginia tax filing? FYI, last year, I had the same situation, and my tax preparer filed as nonresident. I am doing my taxes myself this year with TT.

[Vanessa A]

Do you go back to VA at all?  If you do not go back to VA at all, and you have a home and you live in VT, then you would no longer be a resident of VA.  

However, if you go back to VA on the weekends, you would be a VA Part-Year Resident. 

If you spent more than 183 days in VA, then you would be a resident and need to file a resident return. 

If you are a nonresident of VA and have no VA source income, then you would not need to file a return in VA.  

If you are a nonresident of VA and have VA source income, and you are a resident of VT, then you would file your VA nonresident return first, then you would file your VT resident return claiming a credit for the taxes you paid to VA on your VT return.  

VA Residency Status

[JackLord]

I travel back to Virginia several times per year for short visits. I have no Virginia sourced income. When I select Part Year in TT for Virginia, it asks me when I moved into or out of Virginia during 2023, i.e., dates of Virginia residence. What do I put there since I moved out several years ago?

[DMarkM1]

If you really are a "Domiciliary Resident" of VA then you can put any date in the "My Info" section as you will change the form type to resident form 760 in the VA state interview.  First, be sure you are a "Domiciliary Resident". Here is the VA reference.

"Domiciliary Residents: Individuals whose state of legal residence in the technical sense is Virginia are domiciliary residents. Most domiciliary residents actually live in Virginia. Examples of individuals who are domiciliary residents but who do not live in Virginia are shown below:

• An individual who enters the military from Virginia (i.e., claims Virginia as his/her home of record) will remain a domiciliary resident of Virginia, unless appropriate steps are taken to abandon Virginia as the state of domicile.
• A student who attends school in another state, but maintains Virginia as his/her legal state of residence, is a domiciliary resident.
• A resident of Virginia who accepts employment in another country is a domiciliary resident, unless appropriate steps are taken to abandon Virginia as the state of domicile."

These are some examples of steps that can be taken to abandon VA as the state of domicile.  

• As You state that you moved out several years ago; you live and work in VT.   
• Have you established closer ties to VT than VA?  
• Where do you spend the most time?  
• Did you actually spend more than 183 days in VA?  
• Where are you registered to vote?  
• Do you own a property in VT?   
• Where are your vehicle(s) registered?  
• Where is your primary care physician? 

I would surmise VT is your resident state and you do not have a VA filing requirement.  

However, if you truly are a "Domiciliary Resident" it is full-year; you file a VA Form 760; not 760PY.  So when you get to the VA state interview you will be asked to verify you were part-year VA resident.  You will select no and select "Lived in VA all year." Here is the VA Department of Revenue reference (extracted below). You will not be able to subtract any income out of VA source income.  You will have to claim a credit for taxes paid to another state on your resident VA return. 

"If you are a Virginia resident, file your income tax return on Form 760. Some points you should keep in mind:

• A Virginia resident return must include income from all sources.
• No subtractions are allowed for income reported to other states. Income taxes paid to other states are addressed through tax credits."

Finally, in the VT state interview you will also be asked to verify part-year residency.  Again you will answer No and change the residency to full year.  You will be filing as dual resident.  

[JackLord]

Thanks for the response. On the VA tax site: "Filing as a nonresident: If you lived in Virginia for 183 days or less during the year, you can file as nonresident on Form 763. The nonresident form allows you to claim the full personal exemption and standard deduction amounts."

So non resident it is (a tax preparer last year also used non resident as my VA residency status so that all makes sense.)

[DMarkM1]

If you are non-resident and do not have any VA source income you do not need to file in VA.  You would file a non-resident return if you had VA source income.