i need help with virginia state taxes?
I worked for a VA employer but lived in MD. My employer took out taxes for Virginia state. What I have been told is that I need to file the MD tax return and pay the full amount due and fill out VA tax return with VA income as 0 so that whatever VA taxes were with held are refunded to me. This sounds alright, but what VA tax form do I need to fill out to get the refund? Also, will there be penalty that I will have to pay for MD? If so, is there a formula to figure out what that amount will be? Thanks.
Public Comments
- Go to the VA department of taxation web site: http://www.taxadmin.org/fta/link/FORMS.html Download the form and instructions for: 763 - Nonresident Individual Income Tax Return and follow the instructions. For MD information, go to their web site, download the appropriate form, complete the form according to the instructions. (The instructions will tell you whether or not there are any penalties, if any.)
- You need to use MD resident and VA non-resident. It is not simple, if you are not exposed to tax preparation. You will need to read and understand a lot of forms and instructions. Today is April 12, and it is a little to late to start self-education in this subject. I will highly recommend to use Professional Tax Preparation service.
- VA and MD have a reciprocity agreement in place so you only pay MD income taxes. Since VA taxes were withheld, you'll need to file a non-resident VA tax return showing $0 income to get that refunded to you. Go here for VA tax filing information and forms: http://www.tax.virginia.gov/ You may have to pay penalties and interest to MD since you did not have MD taxes withheld or make estimated payments to MD. MD will bill you for the penalties and interest; the calculation is complex. Go here for MD tax information: http://www.comp.state.md.us/ If your employer is unwilling or unable to withhold MD taxes you should have them stop withholding VA taxes and start making MD estimated tax payments to avoid the penalties and interest in the future. You can stop the withholding of VA taxes by checking the box on line 3 of Form VA-4. Give the completed form to your employer. Here's a link: http://www.tax.virginia.gov/taxforms/Business/Withholding%20Tax/VA-%204.pdf
