VA/DC

[MsTabbyKats]

Client is part year VA and part year DC.

Should be simple...but she exercised and redeemed options (DC employer) after she moved to VA.

Numbers don't make sense...and she should be getting a VA credit for taxes paid to DC for the options.

But I'm not able to generate it...program says she isn't entitled. And I'm clueless.

I told her I couldn't do it...and suggest she go local.

Any VA preparers interested.

[Pacun]

Don't give it up. That the first answer. It is very simple. This is what you need to do.

Let's say that someone moved from DC to VA in the middle of the year. On Form DC-D40 you enter 01/01/2013 to 06/30/2013 and then you enter half of the income on line 7 (which will be exclude from being taxed in DC). If you want to be picky, you separate each document and adjust that amount accordingly.

For VA you will file form VA760PY, you enter 06/30/2013 to 12/31/2013 and on "VA Sch Income" form you enter column A2 to equal the amount you entered on DC so that it is include in VA. If you want to be picky, you can start with this form first and you hand pick which ones you want to include in VA and take this amount ot DC line 7.

AS long as you enter the W-2 state amount correctly (and other forms with withholding) you should be done.

[MsTabbyKats]

Thanks. But there is a complication. Her HR dept said the options gain was on both states W-2..and VA should give her a credit for tax paid to DC. But VA doesn't seem to allow credit for residents or part year residents.

And the numbers just don't make sense.

Are you interested in this one?

I'm almost sure that HR messed up. If it weren't for this credit of $6000...which HR says she is entitled to...but VA feels otherwise...there wouldn't be a problem.

[MsTabbyKats]

To add....her HR dept would make sense if this were a NY/Any other state thing...as far as both states showing the income and NY giving a credit.

But...it doesn't seem to work this way for VA...which is the problem.

Btw...HR is in CA...

[MsTabbyKats]

I cracked the code!

Just 24 hours to go......