Remote Work as an Intern in Texas

[kaylee_imp]

Hello, thanks for taking the time to read my question! I live and work in Texas as both a W-2 employee and another job as a 1099. During the summer I had my first internship (yay!) but I am wondering how to file. The work was W-2, I was working remotely in Texas, but the company is in Virginia in Fairfax County. They sent me my tax form, and it has the federal tax withheld, but it shows also a state income tax return, showing all my wages (11k+) for that period of time as "state wages" but box 17 for state income tax is blank. When I try filing using this it shows that I could owe $200+, my question is do I need to file a Virginia state tax return when filing my taxes? I have never done one and I am confused as to what is necessary as I was in Texas working but the W-2 shows a Virgina side on it. Any help is appreciated and thanks again!

[DMarkM1]

No.   If you did not physically work in VA to earn the W2 wages then those wages are not VA source income and you do not need to file in VA.  Here is the VA reference and extracted below.  Do not include the VA state information (boxes 15-17) when entering your form W2.  

Also, in the "My Info" section, the "Other State Income" topic you should answer "No" you did not earn income in another state.  

TX does not have a state income tax so there is no state filing requirement there either.

"Income from Virginia sources" means income derived from labor performed, business conducted, or property held in Virginia, as well as lottery prizes and certain gambling winnings. Examples of Virginia source income include:

• Wages or salaries received for services performed in Virginia;
• Income received from the rental or sale of Virginia real estate;
• Income, including interest, received from a partnership, S corporation, or other business that operates in Virginia;
• Prizes paid by the Virginia Lottery, and gambling winnings from wagers placed or paid at a Virginia location."