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Posted by Katie on April 11, 2008, 4:35 pm
Please log in for more thread options > > << snip>>
>
> > This happens often enough that VA has a special form, the 763S.
>
> > --
> > Phil Marti
> > Clarksburg, MD
> > << snip>>
>
> I had a look at the form. Wonder why District of Columbia/Kentucky is
> slightly different set of
> questions as opposed to Maryland/Pennsylvania/West Virginia?
>
> Apparently they don't care if the second set of folks commuted? And
> you can reside
> in KY or DC without being a resident. I guess if you're a resident of
> MASS. for example, living
> in MD and commuting to VA, you get nicked for the taxes??
>
The different questions for DC/KY and MD/PA/WV result from the
slightly different terms of the reciprocal agreements between those
states and VA. That's all.
If you are a resident of a non-reciprocal state and work in VA, you do
"get nicked for the taxes." That's the general rule when an
individual lives in one state and works in another; the source state
gets the tax. Reciprocal agreements are an exception to that general
rule. In a non-reciprocal situation, the residence state in effect
cedes the tax to the source state by allowing the resident credit for
the tax paid to the source state. So, no duplicate taxation, but you
do have to file a return and pay tax to the source state.
Katie in San Diego.
--
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