If you lived and worked in NY but then move to Virgina (will be commuting from VA to DC) because your job transfered you to Washington D.C., do you pay income taxes?

DC is actually forbidden by federal law from having a non-resident income tax. Since it’s not a state, it doesn’t get many of the privileges that go with statehood.

You will pay VA income tax once you move to VA on the income you earn in DC.

4 Responses to “If your job transfers you from NY to Washington DC and you move to Virgina to commute, do you pay income taxes?”

  • Bostonian In MO says:

    Of course you do!

    IF DC and VA have a reciprocity agreement in place (and I think that they do) you’d only file in VA and pay VA income taxes. If they don’t then you’d first file a non-resident DC return showing only the DC income and then file a VA resident return showing all income world-wide. VA would give you a credit for the DC taxes paid at least equal to the tax that VA would have collected on the DC income.

    This results in your paying tax on the DC income at the higher of the DC or VA rates. You are NOT double-taxed on that income.
    References :

  • shoredude2 says:

    DC is actually forbidden by federal law from having a non-resident income tax. Since it’s not a state, it doesn’t get many of the privileges that go with statehood.

    You will pay VA income tax once you move to VA on the income you earn in DC.
    References :

  • Judy says:

    Not sure exactly what you’re asking. You pay federal income tax for the whole year, state and maybe local in NY for income while you lived in NY and VA for while you lived in VA.
    References :

  • tro says:

    just what do you think changed that you would not be liable for taxes?
    there are a few states that have no state income tax but Va and New York are not among that list
    if you worked in New York and now work in DC, that is your tax home(regardless of where you live)
    since DC is not a state, apparently you don’t have to file anything but your 1040
    References :

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