Questions & Answers

Who is a nonresident of Virginia?

Nonresidents of Virginia with Virginia adjusted gross income at or above the filing threshold must file if any of their income is from Virginia sources.

Income from Virginia sources is income received from labor performed, business done, or property located in Virginia, including gains from sales, exchanges or other dispositions of real estate and intangible personal property having a situs in Virginia. Virginia source income includes income passed through from a partnership, S corporation or limited liability company that does business in Virginia. It also includes business income and proceeds from real estate transactions passed through by a Virginia trust. It generally does not include personal savings account interest, dividends from an individual's stock market investments, or pension payments from a Virginia payer.

Those who maintain legal domicile in another state and live in Virginia less than 183 days of the taxable year (or do not live in Virginia at all) are nonresidents. Also, members of the U.S. armed forces who have another state as their home of record (legal domicile) are generally classified as nonresidents of Virginia, even though they may be stationed in Virginia for years.

Exceptions for Certain Nonresidents

If you are a nonresident of Virginia who commutes daily to work in Virginia from Kentucky or the District of Columbia, you do not have to file if:

  • You have no actual place of abode in Virginia at any time during the year;
  • Salaries and wages are your only Virginia source income; and
  • Your salaries and wages are subject to income taxation by Kentucky or the District of Columbia.
If you are a nonresident of Virginia who is a resident of Maryland, Pennsylvania or West Virginia and you earn salaries and wages in Virginia, you are exempt from filing a Virginia income tax return and paying Virginia income tax if:
  • Your only income from sources in Virginia is from salaries and wages;
  • You were present in Virginia for 183 days or less during the year; and
  • Your salaries and wages are subject to income taxation by Maryland, Pennsylvania or West Virginia.
If you are a domiciliary resident of Kentucky, Maryland, Pennsylvania, West Virginia or the District of Columbia and have income from Virginia sources other than wages and salaries, (such as business income or gain from the sale of a residence), you must file a Virginia Nonresident Individual Income Tax Return, Form 763, and pay tax on income not specifically exempted above.

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