Where are taxes Paid when working on road?

[GranNan]

My husband and I just bought a 5th wheel.  We are joining the Escapees RV Club in Livingston, TX to keep our Texas residency as our home we are selling is  near Dallas, TX.  We will be working in VA for a year for an out-of-state company who will direct deposit into our Texas bank account.   Does anyone have wisdom for how this works for us newbies?

[JRP]

If you are working for pay in VA, then you will file a VA state income tax return. You should confirm with your employer that they will deduct VA state taxes, so you don't get hit with a large bill at tax time.  

VA does have minimum income amounts required to file, so it depends somewhat on the amount of income you earn in VA.

It doesn't matter how you get paid (direct deposit), the critical factor is where you earned the income. It also doesn't matter where you're domiciled, its where you earn the income.

Another critical factor is whether you will be taxed as a VA Resident or non resident. VA tax law says anyone living & working in this state for more than 6 months (183 days) is taxed as a resident, which means "all" your income is taxed including any outside VA income like Social Security or interest & dividends on investments, rental income, etc ..  Va will require a copy of your Federal return to confirm any other income sources.  Once you stay over 6 months in Va working for pay, you will be a Va resident,not a TX resident.

As always, consult a tax expert to confirm anything you read here.

[Kirk W]

Welcome to the forums! Also an early welcome to the Escapees RV Club.

Your federal taxes will be paid just as they always have been but you will be required to pay state income taxes to the state in which you earn your income. Those who work in 2 or more states in a year must pay income tax on what was earned in each state to the state where it was earned. 

 

[Optimistic Paranoid]

See page 6 of this form:

https://tax.virginia.gov/sites/default/files/2017-01/763-2016-instructions.pdf

Note that you will be considered a VA resident for tax purposes if you "maintain a place of abode" in VA for more than 183 days.  How this might apply to an RV staying in a campground, I do not know.  You will want to talk to a VA tax preparer about this.

 

[Kirk W]

29 minutes ago, GranNan said:

We will be working in VA for a year for an out-of-state company who will direct deposit into our Texas bank account. 

As JRP has suggested, this could cause you problems. The fact that you continue to claim TX as your domicile does not void the laws of VA when you are living and working in the state. You may want to address this with your employer as well as the VA revenue department before you move there. 

[GranNan]

Ok. Thanks.

 

[GranNan]

It appears that I can keep my Texas Residency and also be a Virginia Resident for tax purposes.   

We will be there from November this year to November next year (approx.).  So, by what I read in the documents (if I am reading correctly) is that I won't have to file in Virginia as a resident for 2018 but will for 2019...  am I correct?  I just want to do things right the first time.  i

I really appreciate all your input.

[Optimistic Paranoid]

There's a section on page six that talks about "part-year residents".  Looks to me like that would apply to you in 2018.  But this isn't my area of expertise.

[JRP]

1 hour ago, GranNan said:

It appears that I can keep my Texas Residency and also be a Virginia Resident for tax purposes.   

We will be there from November this year to November next year (approx.).  So, by what I read in the documents (if I am reading correctly) is that I won't have to file in Virginia as a resident for 2018 but will for 2019...  am I correct?  I just want to do things right the first time.  i

I really appreciate all your input.

Based on those dates, you would file as a "part-year resident" for both 2018 & 2019. Moving into the state or moving out of the state during the calendar year makes you a Part-Year Resident, use form 760PY.  Note that as a part year resident you will pay taxes on a proportional share of any income earned outside VA & any passive income. for example 6 months in VA & 6 month outside Va  = 50% times all passive income. etc

[GlennWest]

I had a job in Virginia and it was over 6 months. No problem at all with Virginia. Filled as non resident for taxes.