Residency (CA and VA)

Forum|Forum|4 years ago
September 5, 2021
3 replies
30 views

A client lives in CA and considers it his primary home (domicile). He has primary house, job, votes, dmv, etc.

They have a 2nd home in Virginia to stay while visiting family. It is possible that in some years, they may stay more than 183 (non-consecutive) days However, they do not expect to earn any income in VA.

Does a return need to be filed in VA (if they stay more than 183 days)? If so how is that reported on CA/VA returns? Part year resident for each doesn't seem right if they aren't moving.

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Just-Lisa-Now-

Intuit Community Champion

I dont see any VA filing requirement when they stay there temporarily and aren't earning any money from that state.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

George4Tacks

Level 15

From this I believe they are considered residents https://www.tax.virginia.gov/residency-status#:~:text=Resident%20--%20A%20person%20who%20lives%20in%20Virginia%2C,for%20income%20tax%20purposes.%20Residents%20file%20Form%20760.

From the instructions, my guess is that they would be required to file, but they would get a credit for taxes paid to VA on their CA return and not owe any additional tax, since I expect CA to be the larger. tax https://www.tax.virginia.gov/sites/default/files/vatax-pdf/2020-form-760-instructions.pdf If

You need to determine their Virginia AGI - go through the instructions, or if you can do a demo VA return with the data, then PS can help you to determine the answer.

Answers are easy. Questions are hard!

BobKamman

Level 15

A little prejudice is a dangerous thing. Why do you expect California taxes to be higher than Virginia’s? It’s only for higher incomes that California reaches into higher brackets. Virginia’s “progressive” tax rates are 2% up to $3,000; 3% from $3,000 to $5,000; 5% from $5,000 to $17,000; and 5.75% for income over $17,000.

California doesn’t exceed that 5.75% until a much higher amount: 1% up to $8,932; 2% on $8,933 to $21,175; 4% on $21,176 to $33,421; and 6% on $33,422 to $46,394.

G

Greta

Level 7

I agree. I live in Virginia. The VA tax rate is practically a flat 5.75% rate as over a lowly $17K income.

T

Terry53029

Intuit Community Champion

As @George4Tacks said VA has 183 day rule, and you will pay tax there on all your income, even if not earned in VA. You will get to apply for a credit on your CA return for any tax paid to VA. You will file full year resident for VA, and part year resident resident for CA. Here is a link for info:

https://www.investopedia.com/tax-residency-rules-by-state-5114689

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