My spouse and I live in TN, but we both work for VA companies (he physically works in TN, but I work in VA). Does he also need to file in VA as a nonresident or just me?

[kcheinlein-gmail]

I worked remotely for 9 months this year, so I’m wondering if I really need too, too. I have VA state tax in box 15, no local, but my spouse doesn’t have anything. What do we do?

[DianeW777]

For the Virginia (VA) state return when you are a nonresident see the instructions below for the VA filing status requirement.

• Filing Status 2 - Married, Filing a Joint Return: You and your spouse may file a joint return if:
  • (1) you filed a joint federal return; or
  • (2) neither of you was required to file a federal income tax return; and
  • (3) both spouses had income from Virginia sources.
    • If only one spouse had income from Virginia sources, a separate return must be filed under Status 4.
    • If one spouse had Virginia source income and the other spouse had no income from any sources, use Filing Status 3.

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.

Find out how to prepare separate state returns here: How do I prepare joint federal and separate state returns?

[kcheinlein-gmail]

@DianeW777 Thank you! So if I’m understanding correctly, we can file joint federal returns but need to file separate state returns. He does not have to file in VA at all, both I have to file in both VA and TN. Correct? What about me teleworking? What are TN’s teleworking guidelines?

[DianeW777]

Yes, you are correct.

Here are the Tennessee (TN) filing requirements for residents. 

Note: Tennessee does not impose a state income tax, other than the so-called "Hall Tax" on interest and dividend income.

Generally, if you are a person whose legal domicile is in TN, you only need to file the Hall Tax return if your taxable interest and dividend income exceeded $1,250 ($2,500 if married filing jointly) during the tax year.

Most state tax you on income when you are physically present working in that state. You won't need to worry about the TN return in regards to your income form working.

[kcheinlein-gmail]

Thank you so much!