Quick Tax Question

[Texas Wahoo]

I permanently reside in Texas, but I go to school in Virginia. This summer I worked in Washington, DC, while living in Virginia.

Which state taxes to I have to pay? Obviously, I'd prefer to pay Texas state income taxes (or not pay them). But if that's not possible, can I pay Virginia taxes, or do I have to pay the much higher DC rates?

I'm very confused and don't know whom to ask. Thanks in advance.

 

[The Human Gumbi]

I'm almost positive that you will pay state income taxes to the state that you work in. I know that if I work out of our New York office for more than 3 weeks in a year, I have to pay NY state taxes even though I live and work permanently in Texas.

 

[Texas Wahoo]

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[Bookman]

You generally have to pay state income tax if you earned the income in that state.

So baseball players have to allocate their salaries based on where the games are played.

 

[DCLonghorn8]

If you lived in VA when you worked, you pay VA income taxes. DC does not have a commuter tax, so you don't have to pay any DC taxes. It will be based on whatever address you had your paycheck/paystub mailed to.

 

[Texas Wahoo]

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[DCLonghorn8]

I just called and asked the folks around here that would know. They of course said you have to ask your tax advisor, but also said that it depends on two variables.

First, did you work for more than half the year in DC. They said that if you worked for less than half the year, you may not be liable for VA taxes. I've never heard this before, so don't take my word for it. But this could be your out.

As for The Republic vs. The Commonwealth, he said if you had a lease, or a car registration, or bills in VA, then Virginia will likely treat you as a Virginian for tax purposes and not a Texan. I am guessing that if you go to college in VA, you might not be able to get around that.

If however, you had no VA lease/identifiable residence for that summer either in Charlottesville or Northern VA, and you listed Texas as your residence, and had your paycheck auto-deposited in Texas, you may be able to avoid it.

Did they withhold VA taxes from you paycheck. That seems to me to be the deciding factor. If yes, you'll probably have to pay VA taxes. If not, God Bless Texas.

Without knowing more, I'd guess you'll have to pay VA income taxes. They aren't outlandish, but it still sucks to pay them at all.

Here's a link that might help.

 

[Texas Wahoo]

Thanks for all your help. Apparently my firm messed up and withheld DC taxes, when they should have withheld Virginia taxes. I think that is what is creating so many problems.

 

[DCLonghorn8]

Good luck dealing with the DC government when revenue is on the line.

I know someone who paid their property taxes, had a cancelled check, had certified mail, had all sorts of proof, but DC said they didn't pay. It took them 3 months to get it straightened up when the city had every reason to fix it in ten minutes.

Once the city acknowledged that they bill was paid, they said they lost the money and until my friend could find it, not the city, then they still owed it.

It is a glorious municipal government.

Stay in the Commonwealth if you can help it.