I moved from Florida (no state tax) to Virginia (state tax) September 1st. I am renting an apartment in Virginia while working at a federal job in Maryland (state tax), but still own my home in Florida. The FL house remains occupied by my wife. I have been told there is a tax agreement (for federal workers) between the VA, MD, and D.C. areas that allows a person working in one state but living in another only pays tax in accordance with where they live and not where they work. Regarding state tax, I've been led to believe I wouldn't have to pay any MD tax, only VA tax. What is the correct way to file capturing all this?
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Hello Mr. and Mrs. B,
Yes, you are right. VA has reciprocal agreement with KY, MD, PA, WA, D.C., and WV. That means you only pay tax to the state where you reside. This agreement is for all taxpayers, not just federal workers. So your employer should not withhold tax from you for MD, instead they should only withhold for VA.
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AR (CPA 10+ years)
Sorry, I probably should have included this as a part 2 in my original post, but i forgot. A couple other questions...
1. I had to buy two new (2024) vehicles this year due to being involved in accidents. Can I claim that to get some sort of tax deduction or tax relief? One car is strictly gas and the other is a gas/electric hybrid.
2. VA seems to tax everything unlike FL. I'm not familiar with what I can and can't claim on my taxes.When I registered the car in VA that I drove from FL, I had to pay property tax. This is a annual recurring fee. Can I claim that for a deduction or some sort of relief?
Thanks!
1. New Vehicles:
2. Annual Registration Fee:
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