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New Member
posted Nov 18, 2020 8:02:02 AM

Working and residing in different states

I am currently living in Wisconsin and working remotely for a company in Virginia.  From what I understand I will need to file state tax returns for both states, Wisconsin as a resident and Virginia as a non-resident, and I will get tax credits so that I don't end up paying double.  However, which state should I have the taxes withheld from my paycheck for? I currently have Wisconsin taxes withheld and have myself exempt from withholding in Virginia, but I'm not sure if this is the correct way to do it.  Is there an advantage to doing it one way over the other since Virginia has a slightly lower income tax rate than Wisconsin, or will it work out the same in the end since I have to file in both states?

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1 Replies
Level 15
Nov 18, 2020 4:18:58 PM

You will only file a WI return ... VA doesn't tax remote workers.  The employer is correct in how they withheld state taxes.