Tax Exampt, Living abroad, and Virgina State tax

[remsikt]

What is the name of your state (only U.S. law)? Virginia

Hi. I am a contractor working abroad for 7 years now. We have had our taxes prepared by HR block for 5 of those years. We were told that we didn't even have to file taxes during the time we are over here.

We are fall under the tax exempt rule (well up to 86K this year). I am using File Taxes Online - Do Taxes FREE - File Taxes With TaxACT for filing my taxes this year (and did so last year). But when I put in all the numbers, the Virginia tax part is telling me we owe > $800. Even though I am getting a 400$ federal refund.

I also wrote Virginia and they said that we(well the person that replied) DO have to file taxes. EH. They also said that we are still full residence even though we don't live there. We owe no home, nor any financial ties to VA.

Am I missing something with the Virginia filing that would exempt me from paying any taxes or at least reduce the amount owed ? Some form or something?

We DO pass the physical presence test for the federal taxes.

Any anyone offer any tips ? Suggestions? I would greatly appreciate it.

 

[LdiJ]

What is the name of your state (only U.S. law)? Virginia

Hi. I am a contractor working abroad for 7 years now. We have had our taxes prepared by HR block for 5 of those years. We were told that we didn't even have to file taxes during the time we are over here.

We are fall under the tax exempt rule (well up to 86K this year). I am using File Taxes Online - Do Taxes FREE - File Taxes With TaxACT for filing my taxes this year (and did so last year). But when I put in all the numbers, the Virginia tax part is telling me we owe > $800. Even though I am getting a 400$ federal refund.

I also wrote Virginia and they said that we(well the person that replied) DO have to file taxes. EH. They also said that we are still full residence even though we don't live there. We owe no home, nor any financial ties to VA.

Am I missing something with the Virginia filing that would exempt me from paying any taxes or at least reduce the amount owed ? Some form or something?

We DO pass the physical presence test for the federal taxes.

Any anyone offer any tips ? Suggestions? I would greatly appreciate it.

You do have to file a tax return. Whoever told you that you did not have to file one was incorrect.

However, how does VA even get into the mix? If you are not residing in the US then you do not have a home state for tax purposes, therefore again, how does VA get into the mix?

I can give you advice, but not without the answer to that question.

 

[remsikt]

Thank you for replying.

We used to maintain a residence as well as own a home there about 5 years ago. We also had drivers licenses we maintained there. Mine has long since expired. Though we had originally came over here on some sort of orders.

One possible, pertinent detail I left out is that I am contractor working for a US based company, doing contract work for the US Army.

I do know we have to file a federal tax return.. so i DO have to file state tax? And if so... why don't the exempt status allow to state tax as well?

 

[LdiJ]

Thank you for replying.

We used to maintain a residence as well as own a home there about 5 years ago. We also had drivers licenses we maintained there. Mine has long since expired. Though we had originally came over here on some sort of orders.

One possible, pertinent detail I left out is that I am contractor working for a US based company, doing contract work for the US Army.

I do know we have to file a federal tax return.. so i DO have to file state tax? And if so... why don't the exempt status allow to state tax as well?

You didn't answer my question....let me be more blunt.

What is there in the tax return that you entered into the software, than caused it to generate ANY state tax return, and particularly VA?

Does your W2 reflect VA as your home state? Was there withholding attributed to VA on your W2? SOMETHING had to trigger the software to generate a VA tax return. I need to know what that was.

 

[remsikt]

Thank you again for your reply...

Sorry I didn't understand the question then.. I don't mind blunt!

There were no with-holdings from my W2 for VA taxes. The only thing my W2 shows is that VA is in box 15. Boxes 17 through 20 are empty.

As far as what triggered VA to show up on the website.. I may have added it or it may have picked it up because VA is shown in box 15.

I hope that answers it. If not please let me know. I am happy to provide any information you need so that I can help you help me!

 

[LdiJ]

Thank you again for your reply...

Sorry I didn't understand the question then.. I don't mind blunt!

There were no with-holdings from my W2 for VA taxes. The only thing my W2 shows is that VA is in box 15. Boxes 17 through 20 are empty.

As far as what triggered VA to show up on the website.. I may have added it or it may have picked it up because VA is shown in box 15.

I hope that answers it. If not please let me know. I am happy to provide any information you need so that I can help you help me!

Does box 16 contain any amount? If so, then eventually VA is going to be looking for tax on those wages.

However, you are not subject to VA tax because you are not a resident of VA. Your employer handled it partially properly by not withholding any VA tax, but your employer handled it improperly by putting VA in box 15 (and possibly wages in box 16). Therefore if you can convince your employer to correct the W2, that would be the best solution to the problem.

In the meantime, leave box 15 and 16 empty on the W2 that you imput into the online software. That will stop a VA return from generating.

 

[remsikt]

Box 16 does contain an amount.

However the rest is empty.

 

[LdiJ]

Box 16 does contain an amount.

However the rest is empty.

Like I said, please try to convince your employer to issue a corrected W2, leaving boxes 15 and 16 blank.

 

[remsikt]

I will try!

Thanks so much for your help!