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Question by sillysally85: If your job transfers you from NY to Washington DC and you move to Virgina to commute, do you pay income taxes?
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?
Answer by Bostonian In MO
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.
What do you think? Answer below!