Solved: We live in Okla. My husband works for a Virginia corp remotely and also works in VA some of the time. He is salaried. How do we apportion his income between the states?
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New Member

We live in Okla. My husband works for a Virginia corp remotely and also works in VA some of the time. He is salaried. How do we apportion his income between the states?

Is this is as simple as counting how many work days he spent in VA and using that percentage of total work days for the year to calculate the percentage of income earned in Virginia versus Oklahoma?  His employer is only withholding Oklahoma income taxes, and I understand that the two states do not have reciprocity, so we must file a resident return in OK and and non-resident return in VA, then pay VA taxes owed, then get reimbursed by OK.  Is that correct?

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Employee Tax Expert

We live in Okla. My husband works for a Virginia corp remotely and also works in VA some of the time. He is salaried. How do we apportion his income between the states?

Yes, I would recommend that method you describe.  Do not count as working days in Virginia his telecommuting.  There are states that consider telecommuting for a company in their state to be working in their state, but Virginia is not one of those states.  For Virginia, you are taxed on income earned when physically present there.  

So, to calculate Virginia income, I would use the method you describe:  divide the days spent working in Virginia by the total number of work days in the year, and multiply that percentage by the salary you earned.  Prepare the Virginia return first, because Oklahoma taxes all of your income no matter where it was earned, but they provide a credit for the tax you pay to Virginia on the income earned there.  Preparing the Virginia return first allows TurboTax to calculate the credit for you.

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Employee Tax Expert

We live in Okla. My husband works for a Virginia corp remotely and also works in VA some of the time. He is salaried. How do we apportion his income between the states?

Yes, I would recommend that method you describe.  Do not count as working days in Virginia his telecommuting.  There are states that consider telecommuting for a company in their state to be working in their state, but Virginia is not one of those states.  For Virginia, you are taxed on income earned when physically present there.  

So, to calculate Virginia income, I would use the method you describe:  divide the days spent working in Virginia by the total number of work days in the year, and multiply that percentage by the salary you earned.  Prepare the Virginia return first, because Oklahoma taxes all of your income no matter where it was earned, but they provide a credit for the tax you pay to Virginia on the income earned there.  Preparing the Virginia return first allows TurboTax to calculate the credit for you.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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New Member

We live in Okla. My husband works for a Virginia corp remotely and also works in VA some of the time. He is salaried. How do we apportion his income between the states?

I ended up doing this a little more simply.  Rather than working with percentages, I took my husband's taxable income, as provided by TurboTax, and divided it by the number of working days in 2018 (261) to get a daily wage figure.   I then calculated how many working days he was in VA and multiplied that number by the daily wage amount.  That gave me the portion of his taxable income that is attributable to Virginia.
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