Hi,

I am currently a resident of Florida in which I do not pay any State
Income Tax.  I am going to transfer to Virginia for my job; however, I
am still going to maintain "residence" in FL at my brother’s house.  I
am not sure how long I am going to be living in Virginia and I plan to
live in a mixture of both states.  I only work three days a week and
will be in Florida a lot of weekends.  I am going to maintain my
driver’s license, voter registration, vehicle plates and car insurance
in Florida.  Will I have to pay State Tax in Virginia in this
circumstance and if so will I have to pay the full amount?  Also, what
constitutes or how will they know I actually reside in VA to collect
tax if I do not register anything in Virginia?  I am going to be
renting in VA and will be paying cash with no records of residence.  I
am not trying to scam the state and will pay taxes if it is justified
-- I am just looking for a legal answer under my circumstance.  Thanks
a lot in advance!!

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Clarification of Question by jkrech17-ga on 11 Jul 2003 02:59 PDT

Also, I forgot to mention that I am keeping all my bank accounts in
Florda with all money being direct deposited.

Hi jkrech17,

According to the Virginia Department of Taxation online, you won't
need to file a VA income tax return if your income is less than $5000,
otherwise you will, based on your residency status. There will be
several options available to determine which status will be the most
advantageous for you.

In regards to your question "Also, what constitutes or how will they
know I actually reside in VA to collect tax if I do not register
anything in Virginia?", "Virginia law imposes individual income tax
filing requirements on virtually all Virginia residents, *as well as
on nonresidents who receive income from Virginia sources*." Assuming
you will be receiving a W-2 from your employer in VA, you will need to
file.
http://www.tax.state.va.us/site.cfm?alias=ResidencyStatus

WHO MUST FILE:
http://www.tax.state.va.us/site.cfm?alias=WhoMustFile

"- Residents must file an individual income tax return if Virginia
adjusted gross income is $5,000 ($8000 for joint returns).

- Nonresidents are subject to the same requirements as residents.  The
filing threshold for a nonresident cannot be based solely on income
from Virginia sources.

- Part-Year Residents are also subject to the same requirements as
residents."


RESIDENCY STATUS:
http://www.tax.state.va.us/site.cfm?alias=ResidencyStatus

"- Actual Residents: Individuals who live in Virginia or maintain a
home here for more than 183 days during the taxable year are actual
residents. The period of residency does not have to be consecutive
days.

- Nonresidents: Nonresidents are individuals who are neither
domiciliary nor actual residents of Virginia, but who received income
from Virginia sources during the taxable year.

- "Income from Virginia sources" means income derived from labor
performed, business conducted, or property held in Virginia,
including:
Wages or salaries received for services performed in Virginia."

NONRESIDENTS:
http://www.tax.state.va.us/site.cfm?alias=ResidencyStatus#NONRESIDENTS

"- Nonresidents report their income in the same manner as residents,
but use Virginia Form 763. An allocation percentage, based on the
ratio of Virginia source income to income from all sources, is applied
to compute the net Virginia taxable income.

- Your maximum standard deduction amount will be the lesser of your
earned income or: Single $3,000; Filing jointly $5,000"

PART-YEAR RESIDENTS:
http://www.tax.state.va.us/site.cfm?alias=ResidencyStatus#PART-YEARRESIDENTS

"- Part-year residents have several options for reporting and
computing Virginia taxable income.

  1. Filing as a part-year resident: A part-year resident usually
files a part-year return on Form 760-PY. Personal exemptions and the
standard deduction must be prorated, and a subtraction is allowed for
non-Virginia income.

  2. Filing as a resident: A part-year resident whose entire federal
adjusted gross income is from Virginia sources can file as a resident
on Form 760. Filing as a resident allows the individual to claim full
personal exemption and standard deduction amounts, rather than
prorating these items based on length of residency.

  3. Filing as a nonresident: A part-year resident who lived in
Virginia for 183 days or less during the taxable year can file as
nonresident on Form 763. As with a resident filing, the nonresident
filing allows the individual to claim the full personal exemption and
standard deduction amounts."

I hope this helps. If you have any questions, please post a
clarification request before rating my answer. If you will be in VA
183 days or less, the "Part-Time Resident option # 3" may be the way
to go to take advantage of the full personal exemption and deductions.
More than 183 days, the "Part-Time Resident Option # 2, for the same
reason.


Thank you,
hummer

Google Search Terms Used:

Virginia income tax

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Request for Answer Clarification by jkrech17-ga on 11 Jul 2003 11:03 PDT

Hi,

For option 2, I should just have the taxes taken out of my paycheck
weekly to avoid paying a lump sum at the end of the year right?  Also,
I am single with no dependents, do you recommend I claim 1?  Thanks!

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Clarification of Answer by hummer-ga on 11 Jul 2003 16:15 PDT

Hi again jkrech17,

Firstly, my apologies for taking so long to get back to you but we've
been out for the day.

Yes, I agree, if you have a choice it's better to have a little taken
out of your paycheck each week rather than a lump sum at the end. I
think you will feel the pain less and you won't have to worry about
having enough money at the end of the year to pay for it.

Yes, you are dependent upon yourself, so you will claim yourself (1)
and receive the standard personal exemption and deductions.

I hope I've answered your questions - if I've misunderstood them,
please let me know. Good luck in Virginia and take care if you are
going to drive back to Florida every weekend.

Sincerely,
hummer