Comments on: If your job transfers you from NY to Washington DC and you move to Virgina to commute, do you pay income taxes?

By: tro

tro — Sun, 20 Dec 2009 17:30:59 +0000

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
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By: Judy

Judy — Sun, 20 Dec 2009 17:09:59 +0000

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.
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By: shoredude2

shoredude2 — Sun, 20 Dec 2009 16:19:59 +0000

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.
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By: Bostonian In MO

Bostonian In MO — Sun, 20 Dec 2009 15:34:59 +0000

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.
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