Live in Virginia but work in DC

[ttbtaxes]

I have a client that lives in Virginia but works in DC. My understanding is that there is a reciprocal agreement between those two taxing authorities. I believe that means there no tax paid to Dc nor is there any filing unless of course the employer happened to withhold DC taxes. Can anyone confirm whether my understanding is correct?

Also, I can't find anything authoritative from either authority's website that shows that there is such an agreement in effect. I do find articles written about it but nothing authoritative. For example, VTB 06-8 is the actual agreement signed in 2006 which provides for the reciprocity with Maryland:

http://www.tax.virginia.gov/laws-rules-decisions/tax-bulletins/06-8

Any thoughts or guidance would be appreciated.

[kathyc2]

No need to file DC tax return unless residence there. Page 5 of linked has filing requirements.

http://otr.cfo.dc.gov/sites/default/files/dc/sites/otr/publication/attachments/2014_D-40_and_D-40EZBooklet121914.pdf

[ttbtaxes]

Thanks Kathy. I saw that but was looking for something authoritative to cite. An actual reciprocal agreement or something contained in their state's law/regulations. I couldn't find the regulations or tax law anywhere. Many states have that information online from which to search. I couldn't find it on their website.

[TAXNJ]

Old fashion

Thanks Kathy. I saw that but was looking for something authoritative to cite. An actual reciprocal agreement or something contained in their state's law/regulations. I couldn't find the regulations or tax law anywhere. Many states have that information online from which to search. I couldn't find it on their website.

Kathy provided good info. But if not satisfied have you tried good old fashion telephone call (on line is not the only way) to both tax agencies to get what your looking for?

That maybe the way to accomplish your goal.

[New York Enrolled Agent]

Thanks Kathy. I saw that but was looking for something authoritative to cite. An actual reciprocal agreement or something contained in their state's law/regulations. I couldn't find the regulations or tax law anywhere. Many states have that information online from which to search. I couldn't find it on their website.

There is no need to have a reciprocal agreement. The tax is only imposed on residents. Did you look at the DC law?

100.4 It is the purpose of the Act, as amended, to impose the following taxes in accordance with the definitions in Title 1 of the Act:

(a) An income tax upon the entire net income of every resident and every resident estate and trust; and

[ttbtaxes]

I did try calling both DC and Virginia ad nauseam. Got your typical government workers who had no interest in scratching below the surface to show me what authoritative source we were dealing with or where to direct me to find it. One from each taxing authority gave me the wrong answer. I also searched high and low for the Dc tax laws or regulations. Two different employees for their tax department couldn't direct me to where they were.

Thanks for the tax law section. I also found the regs. earlier this morning:

§ 47–1806.01. Tax on residents and nonresidents - "Taxable income" defined.

For the purposes of this chapter, and unless otherwise required by the context, the term "taxable income" means the entire net income of every resident, in excess of the personal exemptions and credits for dependents allowed by § 47‑1806.02 and that portion of the entire net income of every nonresident which is subject to tax under §§ 47‑1808.01 to 47‑1808.06.

Thanks for your help!