My daughter continued to live with my wife and I in Maryland after graduating college in May 2019, started working for a company in Washington, DC in June 2019, until January 1, 2020.
On January 1, 2020, my daughter signed a lease and moved into an apartment in Washington, DC, and updated her withholding to withhold DC income tax.
In mid-March, due to COVID-19, her company went to mandatory telework. As she obtained the apartment only to significantly ease her commute, and due to perceived higher risk of COVID in the city, she returned to our home in Maryland at that time. Once she left the apartment around March 15, she did not desire to return to live there unless the company would have mandated a return to the office to work, which did not happen.
She continues to pay rent and utilities on her DC apartment even though she has not spent one night there since mid-March. She continues to have DC income tax withheld.
Her company just informed employees that they are going to encourage telework through at least the remainder of calendar year 2020. As a result, she is signing a new agreement with her apartment management company, her roommate, and a new person who will sign a new lease. This frees her from the lease effective August 1.
She moved back to Maryland around March 15, and continued to pay rent on her DC apartment through July. She is off the lease effective July 31. Come 2020 tax time in early 2021, does she owe DC a partial year of income tax from January 1 through July 31, or January 1 through March 15 when she physically returned to Maryland and did not spend another day in DC?
- posted 3 months ago