G2R Posted January 20, 2021 Report Share Posted January 20, 2021 Every time I get an email from this client, I cringe knowing it's another new item to add to a multiple-times-completed return. Client is Married. She has a place of abode in Virginia. She spent 44 days in VA. The remainder, she was in RI with her husband. Her driver's license is still Virginia and I'd wager she didn't update her voter's registration either. She's bounced around various states and hasn't actually met the 183 days in VA since 2013. I assume because she hasn't taken the necessary steps to separate herself from VA residency I have to file VA tax return, MFS correct? Quote Link to comment Share on other sites More sharing options...
G2R Posted January 20, 2021 Author Report Share Posted January 20, 2021 Lastly, when assessing only HER income, her AGI is negative. So, if filing even still required? Quote Link to comment Share on other sites More sharing options...
Possi Posted January 22, 2021 Report Share Posted January 22, 2021 I don't know how her AGI is negative, nor why she would be MFS. So, I can't answer if filing is required. She might have had GROSS income that required filing and expenses that created a negative NET income. So, not enough information. Quote Link to comment Share on other sites More sharing options...
Lion EA Posted January 22, 2021 Report Share Posted January 22, 2021 For a taxpayer to change their residency, they have to leave the old state and "stick the landing." VA will look at her facts & circumstances, so you must, also. I just took a great FREE course from CPA Academy on State Personal Income Tax Issues Created by COVID-19 taught by Mark Klein, chairman Hodgson Russ LLP, but I see a couple of other FREE courses you might want to take on similar issues: https://www.cpaacademy.org/ 4 Quote Link to comment Share on other sites More sharing options...
G2R Posted January 22, 2021 Author Report Share Posted January 22, 2021 2 hours ago, Possi said: I don't know how her AGI is negative, nor why she would be MFS. So, I can't answer if filing is required. She might have had GROSS income that required filing and expenses that created a negative NET income. So, not enough information. My apologies. Her TAXABLE INCOME is negative. MFS because her husband lived in RI all year and she's the only owner of the VA property. He made a good amount of money and so their Federal and RI is MFJ. She mentioned filing the VA return anyway for school/residency purposes? But if I'm reading the VA tax rules correctly, she's only allowed to claim one of their two dependents AND only if she herself had provided at least HALF of the earnings. Correct? Quote Link to comment Share on other sites More sharing options...
Possi Posted January 25, 2021 Report Share Posted January 25, 2021 If her VA taxable income is less than zero, she doesn't file. I would advise you to call Richmond and talk to them about it. 804-367-8031 I don't know if filing a tax return (or not) would have an affect on in-state tuition. Quote Link to comment Share on other sites More sharing options...
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