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TQW
Level 2

How do I calculate Income from Virginia sources as a nonresident for Virginia state taxes?

How do I calculate "Income from Virginia sources" as a nonresident for Virginia state taxes?

I am a resident of Washington state, but worked for a bit while on vacation in Virginia. How do I calculate nonresident income allocation for my Virginia tax return? The only guidance offered by TurboTax is "Enter the portion of the following items that you earned in Virginia (or from Viginia sources)" but it doesn't explain how to find that portion.

TurboTax doesn't seem to support this scenario. Would I be better to directly fill out VA form 763 and file it directly?

https://www.tax.virginia.gov/sites/default/files/taxforms/individual-income-tax/2023/763-2023.pdf

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Accepted Solutions
DianeW777
Expert Alumni

How do I calculate Income from Virginia sources as a nonresident for Virginia state taxes?

Based on your information there is no tax return required by Virginia (VA). You do not have any VA source income and you are not a resident.  Even though you did some work while on vacation in VA, this does not constitute income from VA sources.

  • Nonresident -- A person who is not a resident or part-year resident, but who receives taxable income from Virginia sources is a nonresident for income tax purposes. 

@TQW 

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6 Replies
JamesG1
Expert Alumni

How do I calculate Income from Virginia sources as a nonresident for Virginia state taxes?

What was  the nature of the income that should be sourced to Virginia?  Did you receive a W-2 or a 1099-NEC?  Is this self-employment income with no source document?

 

TurboTax identifies the income as sourced to one state or another and allocates the income.  You may have to identify the Virginia based income when the income is reported in the TurboTax software.

 

Virginia 2023 Form 763 Nonresident Individual Income Tax Instructions, page 6 states:

 

Income from Virginia sources is income received from labor performed, business done, or property located in Virginia, including gains from sales, exchanges or other dispositions of real estate and intangible personal property having a situs in Virginia. Virginia source income includes income passed through from a partnership, S corporation or limited liability company that does business in Virginia. It also includes business income and proceeds from real estate transactions passed through by a Virginia trust. It generally does not include personal savings account interest or dividends from an individual’s stock market investments.

 

 

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TQW
Level 2

How do I calculate Income from Virginia sources as a nonresident for Virginia state taxes?

This was W-2 income, but as it was unofficial travel, I only have a Washington State W-2.

AmyC
Expert Alumni

How do I calculate Income from Virginia sources as a nonresident for Virginia state taxes?

This leads me to question  if it is VA source income. If you were in VA having meetings and planning things, you weren't really making money in VA - just doing your job. If you were on the beach selling t-shirts, you were making money in VA. If you made money in VA, you would file a nonresident return for VA and enter the wages allocated to VA. 

 

To enter:

  1. You would go through the VA program
  2. When you reach the Nonresident Income Allocation screen, enter VA wages

Page 6  of 763 Instructions lists the filing threshold required to file a VA NR return: 

You do not have to file if you are: 

Single and your VAGI is less than ..........$11,950 

Married filing a joint return (both must have Virginia Source Income) and your combined VAGI is less than ....................$23,900 

Married, spouse has no income from any source and your VAGI is less than..$11,950 

Married filing separately (on separate forms) and your VAGI is less than...........$11,950

 

 

 

 

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TQW
Level 2

How do I calculate Income from Virginia sources as a nonresident for Virginia state taxes?

Would working remotely within the state of Virginia count as making money in VA?

I was working the same job I have in Washington state, but I was doing the actions from Virginia. 

DianeW777
Expert Alumni

How do I calculate Income from Virginia sources as a nonresident for Virginia state taxes?

Based on your information there is no tax return required by Virginia (VA). You do not have any VA source income and you are not a resident.  Even though you did some work while on vacation in VA, this does not constitute income from VA sources.

  • Nonresident -- A person who is not a resident or part-year resident, but who receives taxable income from Virginia sources is a nonresident for income tax purposes. 

@TQW 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
TQW
Level 2

How do I calculate Income from Virginia sources as a nonresident for Virginia state taxes?

Thank you for the clarification!

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