We purchased home 12/26 and moved 12/30 from IN to VA. Would we fulltime IN resident or part time?

[solarscherer]

We closed on our house VA 12/26/18 and sold our IN home 12/31/18. My husband traveled on and off to VA to work during the last quarter of 2018 and his w2 reflect VA for that time period. Do we claim partial residency for  both states. Or full time residency in IN, since we did not physically move until 12/31?

[Coleen3 · Accepted solution]

You are a full time resident for IN. 

Filing requirements are based on your residency status and the amount of your income. Dependents and students are subject to the same filing requirements as anyone else. • Nonresidents of Virginia with income at or above the filing threshold must file if any of their income is from Virginia sources. 

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 

If you are not required to file, but you had Virginia income tax withheld or you made estimated payments, you are entitled to a refund of the amount withheld or paid. You must file a return to get a refund. We periodically review and update the Department’s records to make sure that we have correct return information. Sometimes, we have to contact taxpayers to confirm that they did not need to file for a given year. 

https://tax.virginia.gov/sites/default/files/vatax-pdf/2018-form-763-instructions.pdf

Edited [4/15/2019 [9:45]

[solarscherer]

ok thank you. So I would just submit IN state taxes and do nothing with VA until next year?

[Coleen3]

Yes. I am assuming you had no taxable events the single day you were there.

[Zbucklyo]

No, you are required to file a VA non-resident return for the income your husband earned in VA.

[Coleen3]

Misread the question. Please see edited answer for non resident filing requirements.

[solarscherer]

Ok, thanks for the responses. He actually made under 11,950 in VA (10,300). So it sounds like we could claim full time IN residency and not have to file anything for VA.

One other question. We had a home built in VA with Solar panels on it and are claiming an the solar panels on our taxes for the federal energy credit. Do you think that will be problem if we don't claim VA residency, since the solar panels we paid for are on the VA house? It seems like given our situation we could claim partial VA residency & IN residency or just full time IN residency.  But if claim full time IN residency can we claim a energy tax credit for a VA home?

[Zbucklyo]

I think it will be cleaner to file as a full-year IN resident, VA non-resident.  I don't think it will make any difference in your tax liability to the two states, and you will get pesky questions about allocating income to the two states.  This way, you know exactly that your VA source income are the amounts your husband earned in VA.  Also, you really didn't live in VA in 2018.

[Coleen3]

Those who maintain legal domicile in another state and live in
Virginia less than 183 days of the taxable year (or do not live in
Virginia at all) are nonresidents
https://www.tax.virginia.gov/