I moved to MD from VA in Dec 2006.
In January 2007 employer erroneously sent withholding tax to VA, even though I lived in MD.
As I was not a VA resident in 2007, what VA tax form do I file to get that withheld tax payment back from the state of Virginia??
Thanks for your help!
Vic
This happens often enough that VA has a special form, the 763S.
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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