Which state should I pay my taxes too - a bit complicated situation

[dvallee40]

Hello,

I currently moved to Florida from VA.  I have worked for a federal agency in DC since 1997; however, my office was moved to Virginia in 2010 (was detailed out to another agency in Virginia) .  My duty station is still in DC though as I am on the payroll of the DC based agency and not the Virginia one.  As I read the VA state tax regs I understand that I will still need to pay VA state income tax if my income is sourced from Virginia.  I will be teleworking in Florida in 2024 (with trips up to VA twice a month for a few days) until I retire in 2025.  I expect to sell my Virginia house this spring.  My question is:  is my income really sourced from Virginia or DC?  If its sourced from VA then it appears to me I will need to pay state income taxes for all of the days spent in VA.  (assuming I can prove my new domicile in Florida)   However, if my income is sourced from DC then I am unsure if I need to pay any VA state income taxes?  Maybe then I will need to pay DC taxes for my trips up to VA?  

[Hal_Al]

You pay VA tax only on the income earned for the days actually worked in VA.  You will not pay any DC tax.  VA "sourced" and DC* "sourced" income is based on where you physically work. 

For the year of the move , you will file a VA part year resident return. After that, you file a non resident return.

*The DC reciprocity rule makes DC sourced wages not taxable to residents of other states. 

[TomD8]

To put it another way: DC income tax is levied only on residents of DC.  A resident is someone who is either domiciled in DC or who maintains a place of abode in DC for 183 days or more during the tax year.

Any income you earn from work you actually (physically) perform in VA is taxable by VA.  So  you will need to keep track of your days worked in VA after your move to FL.

[dvallee40]

Thanks for your reply.  That was my hunch.  Just curious would i pay state taxes for days in Virginia but not working like weekends?   I do plan on eventually consulting with a VA based Tax CPA.  Regards. 

[Hal_Al]

Q.  Would I pay state taxes for days in Virginia but not working like weekends?  

A. No, since no money was earned on those weekend days.  You don't allocate by days in the state, but by the amount earned on that day.  

[dvallee40]

Thanks for reply.  Just thought of another question based on your last reply.  If i am in VA for a paid Holiday, sick leave or annual leave would i need to pay taxes for those days?

regards

[TomD8]

Here's a link to Virginia's actual law regarding taxable income of non-residents:

https://law.lis.virginia.gov/admincode/title23/agency10/chapter110/section180/

My personal (and unofficial) interpretation of the law would be that, since your benefits such as sick pay, vacation pay, holiday pay, etc., are general benefits of your employment and not specifically "earned in Virginia", those days would not be included when calculating your VA-taxable income.  I would only count the days you actually worked in Virginia.