Virginia State Tax Rulings
Free plain-English summaries of state tax letter rulings and advisory opinions issued in Virginia, with full citations and the original source on every page.
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Did a military-academy student change domicile from Virginia to another state when a parent moved there and the student stayed there temporarily during a shutdown?
No. The taxpayer's father moved to another state, and the taxpayer stayed there temporarily during a 2013 government shutdown, but he intended to return to the military academy when it reopened. Most …
Does taking a job in another state for one year end Virginia domicile when the taxpayer keeps Virginia ties and shows little evidence of establishing a new permanent home?
No. The taxpayer showed employment in another state but little else demonstrating a new permanent or indefinite domicile. He kept his Virginia driver's license and filed Virginia resident returns for …
Can Virginia licenses, vehicle registration, a home, and voter registration establish Virginia domicile when an overseas taxpayer was not yet physically living there?
No. The taxpayer had previously established domicile in State A and moved overseas for work with her spouse. Although she owned a second home in Virginia and obtained Virginia driver's licenses, vehic…
Can Virginia abate resident income tax when a taxpayer remained domiciled in Virginia but reasonably relied on the Department's earlier written advice saying otherwise?
Yes. The taxpayer's long State A lease and vehicle registration did not outweigh his retained Virginia driver's license, vehicle and voter registrations, Virginia voting, and Virginia address for tax …
Can a person living and working in D.C. remain domiciled in Virginia, and which D.C. taxes qualify for Virginia's out-of-state credit?
Yes. The taxpayer lived and worked in D.C., had D.C. tax withheld, and filed a D.C. resident return, but she kept a Virginia driver's license and voter registration, received tax documents at a Virgin…
Can someone remain domiciled in Virginia after moving to West Virginia yet still receive Virginia's credit for West Virginia tax withheld from wages?
Yes. The taxpayer established substantial West Virginia ties by selling her Virginia home, taking a West Virginia job, and buying a home there, but she kept her Virginia driver's license and vehicle r…
Does entering active duty or claiming a former military home of record automatically end Virginia domicile for a service member or spouse?
No. The wife entered active duty in November 2015, but the Servicemembers Civil Relief Act does not erase a Virginia domicile established before military service. The husband was retired, and his form…
Was a military spouse exempt from 2014 Virginia tax by claiming the service member's state when she had stayed there only 30 days before a planned overseas move?
No. The pre-2018 military-spouse rule protected a spouse present in Virginia solely to accompany a service member under orders only when the spouse and service member shared the same domicile. Althoug…
Did a leave-and-earnings statement alone prove a military couple remained domiciled outside Virginia after moving there in 2015?
No. The Servicemembers Civil Relief Act prevents a service member, and in qualifying circumstances a spouse with the same domicile, from changing domicile solely because of military orders. But it doe…
Did new school, property, license, and vehicle evidence overturn Virginia's finding that a couple kept Virginia domicile during foreign assignments?
No. Virginia reconsidered the prior ruling because the couple offered new domicile evidence, but the material did not show permanent or indefinite intent to remain in either foreign country or abandon…
Did an employer relocation to Louisiana change a taxpayer's domicile when he kept Virginia voting, licensing, registration, and mailing ties?
No. The taxpayer lived and worked in employer-provided Louisiana housing and said he intended to remain, but he kept a Virginia driver's license, vehicle registration, voter registration and voting hi…
Could a taxpayer obtain late reconsideration of a 2014 domicile ruling or avoid 2015 Virginia residency with evidence of a 2016 out-of-state condo?
No. The request to reconsider the 2014 determination was dated and received well after the 45-day deadline in 23 VAC 10-20-165(F), so that ruling and assessment became final. For 2015, the same Virgin…
Could taxpayers exclude a 2013 retirement distribution by claiming the husband lived elsewhere or that another state had taxed the underlying contributions?
No. The couple's own returns reported a July 2012 move to Virginia and full-year Virginia residence in 2013, while a questionnaire showed the husband spent 275 nights in Virginia. Their home, licenses…
Did a taxpayer successfully abandon Virginia domicile after moving for an indefinite job, listing the Virginia home for sale, and relocating with a spouse?
Yes. The Commissioner found that the taxpayer changed domicile in March 2014 by leaving for indefinite employment, physically relocating with his spouse, listing the Virginia home for sale, using the …
Did a military spouse become domiciled in Virginia after buying a home and obtaining a Virginia driver's license?
No. Although the couple bought a Virginia home and the spouse obtained a Virginia driver's license, she kept substantial ties to the prior state and later surrendered the Virginia license. Virginia fo…
Was a taxpayer a Virginia resident when he spent only 161 days there but kept a long-term job, home, license, vehicles, and voting ties?
Yes. The taxpayer was not an actual resident because he spent only 161 days in Virginia, but he remained a domiciliary resident. His long-term Virginia job, home, voter registration and voting, vehicl…
Did living and working in another state from a recreational vehicle establish a new domicile when Virginia ties remained?
No. Even if the husband acquired ties to the other state through work and living there in an RV, he did not prove abandonment of Virginia. The Virginia home, vehicle and RV registrations, driver's lic…
When did a taxpayer end Virginia domicile after a temporary move to one state before permanently settling in another?
Virginia domicile continued until June 2014. The taxpayer's temporary move to an intermediate state did not establish a new domicile, and the actions showing residence in the destination state occurre…
Did working and leasing homes in another state end Virginia domicile when the taxpayer kept a Virginia home, spouse, vehicles, and license?
No. The taxpayer established work and residences in the other state, but did not prove abandonment of Virginia. His spouse and home remained in Virginia, along with vehicle registrations, a driver's l…
Was a taxpayer who worked 165 days in another state still a Virginia resident when he spent 200 days in Virginia and kept his home, license, vehicles, and voting ties there?
Yes. The taxpayer was both a Virginia domiciliary and an actual resident because he did not abandon Virginia and spent 200 days there. He still could claim Virginia's limited credit for income tax pai…
Did military assignments outside Virginia change a service member's domicile when he kept Virginia licensing, registration, and voting ties?
No. Military orders and leases in other states did not by themselves change domicile. The service member showed neither a new domicile elsewhere nor abandonment of Virginia, where he kept a driver's l…
Did temporary overseas work establish new domiciles when a married couple kept a Virginia home, licenses, voting ties, and a vehicle registration?
No. The overseas moves appeared temporary, and the couple did not prove abandonment of Virginia. They retained a Virginia home, active driver's licenses, voter registration, and a vehicle registration…
Did renting homes and filing resident returns in two other states end Virginia domicile when the taxpayer kept Virginia licenses, vehicles, and voting ties?
No. The taxpayer did not prove abandonment of Virginia because she kept a Virginia driver's license, vehicles, and voter registration and later identified herself as a Virginia resident. She could cla…
Did working abroad change Virginia domicile when the taxpayer kept a Virginia home, license, voter registration, vehicles, and later returned?
No. Even if the taxpayer established a home abroad, he did not prove abandonment of Virginia. He kept a Virginia residence, driver's license, voter registration, and vehicle registrations and returned…
Did foreign work and advice from an employer or tax preparer prove that a taxpayer was not a Virginia resident in 2014?
No. Temporary work abroad did not by itself abandon Virginia domicile, and the taxpayer supplied no requested evidence of a permanent new home. Filing Virginia resident returns before, during, and aft…
Did the Servicemembers Civil Relief Act protect a military couple from Virginia income tax when their conduct showed they had established Virginia domicile?
No. Military orders alone do not change domicile, but the federal protection did not prevent Virginia from considering the couple's voluntary ties. Virginia licenses, vehicle registrations, voting, ho…
Did a taxpayer prove she was a District of Columbia resident rather than a Virginia resident for 2015?
No. The taxpayer supplied no evidence establishing a District of Columbia domicile, while her Virginia resident returns before and after 2015 supported continued Virginia domicile. The assessment rema…
Did delayed voter registration and licensing prevent a taxpayer from proving that he changed domicile from Virginia before 2009?
No. The taxpayer bought and occupied a home in the other state in 2008, later registered to vote and obtained its driver's license, and explained that his Virginia address was leased property and his …
Did a military spouse become a Virginia domiciliary by buying a home and obtaining a Virginia driver's license?
No. Despite a Virginia home, vehicles, and driver's license, the taxpayer retained strong ties to the service member's State A domicile, including a home and active voting there. Virginia found no com…
Did a temporary move and job in another state end a taxpayer's Virginia domicile?
No. The taxpayer described the other-state residence as temporary and Virginia as her permanent home, while keeping a Virginia license and voter registration. Virginia treated her as a 2014 domiciliar…
Could Virginia tax a 2016 retirement distribution received after the taxpayer moved abroad and abandoned Virginia domicile?
No. The taxpayer had sufficiently abandoned Virginia domicile and established domicile in Country A before 2016. Federal law barred Virginia from taxing the retirement distribution received as a nonre…
Did military orders prevent a service member and retired spouse from becoming Virginia domiciliaries?
No. Military orders alone do not change domicile, but voluntary actions can. Based on the available record, Virginia found the retired spouse had established Virginia domicile and the service member h…
Did a military spouse prove that she retained the service member's other-state domicile?
No. The spouse established substantial Virginia ties and did not show resident returns or other sufficient connections to the service member's claimed home state. Virginia upheld the assessments, whil…
When did a taxpayer become a Virginia resident if domicile changed in May but he spent more than 183 days here?
Virginia found the taxpayer changed domicile in May 2015, but his taxable period began March 8. Because he spent more than 183 days in Virginia during 2015, he was an actual resident from his first Vi…
Did living in Pennsylvania and working in Delaware end a taxpayer's Virginia domicile for 2013?
No. The taxpayer kept a Virginia license, vehicle registration, voter registration, and prior home while showing little evidence of a permanent Pennsylvania domicile. Virginia taxed him as a resident …
Did buying a Virginia retirement home and obtaining a Virginia license establish domicile while the taxpayer worked abroad?
No. The taxpayer showed future intent to live in Virginia but was present only for brief vacations while working abroad. Because domicile requires intent and physical presence together, Virginia found…
Did years of living in another state end Virginia domicile when the taxpayer kept voting and maintaining a home here?
No. Although the taxpayer lived in State A, she retained a Virginia home, license, vehicles, mailing address, and repeatedly voted full Virginia ballots. Virginia found she had not abandoned domicile,…
How should taxpayers file when they moved to Virginia in June 2014?
They were Virginia part-year residents beginning with the June move. The couple had to file Form 760 PY, report income attributable to the Virginia resident period, and prorate personal exemptions and…
Did a temporary overseas assignment establish a new domicile outside Virginia for 2014?
No. The taxpayer kept a Virginia lease, driver's license, vehicle registration, and financial mailing address, and later moved to a different state rather than remaining abroad. Virginia treated the f…
Did a taxpayer successfully abandon Virginia domicile after moving to another state for work?
Yes. The taxpayer worked and lived in State A, leased a residence, moved his license and vehicle registration, registered to vote there, and had no meaningful Virginia ties beyond a mailing address. V…
Could Virginia residents subtract overseas wages or defeat their assessments by asserting that one spouse changed domicile?
No. Virginia's foreign-source-income subtraction had been repealed for tax years beginning in 2003, so the overseas wages could not be subtracted if the couple were residents. The couple also failed t…
Did a six-year missionary assignment abroad end the taxpayer's Virginia domicile?
No. The taxpayer's wife and children remained in Virginia, a Virginia organization continued paying his stipend, the assignment was for experience, and he returned in 2016. Virginia treated the work a…
Was the wife a full-year Virginia resident in 2014 despite spending substantial time in another state?
Yes. The couple moved to Virginia intending a permanent change in 2013, filed a Virginia part-year return, established a home here, and added licenses and vehicle registrations. Virginia treated the w…
Did an overseas worker prove that he was domiciled outside Virginia for 2011?
No. The taxpayer asserted State A residence but kept a Virginia driver's license and possibly Virginia property, while providing insufficient evidence that Virginia domicile had been abandoned. The re…
Did moving to another state before an overseas assignment end the taxpayer's Virginia domicile?
No. The taxpayer knew he would relocate abroad and did not show an intent to remain permanently or indefinitely in the other state. His Virginia property, license, vehicle registrations, addresses, an…
Did an airline pilot and spouse abandon Virginia domicile when they moved abroad for his employment?
No. Although the couple established a home abroad, they kept Virginia licenses, vehicles, and a home, repeatedly visited Virginia, used a Virginia federal-tax address, and had stated an intent to reti…
Did living and working abroad establish that the taxpayer had abandoned Virginia domicile for 2015?
No. The taxpayer supplied no documentation showing a permanent departure, had filed the 2015 return as a Virginia resident, and retained a Virginia driver's license. The Department concluded he failed…
Did a former service member become domiciled in Virginia during 2013 while attending graduate school elsewhere?
No. The husband retained his prior state's license, vehicle registration, and voting ties through military service and while attending school elsewhere. Virginia found that he did not change domicile …
Did an active-duty service member remain domiciled in another state despite extensive Virginia connections?
No. The service member's Virginia home, driver's license, vehicle registrations, voting, resident returns, and statement of Virginia domicile in a divorce decree showed that he had established Virgini…
Did living and working in Maryland during 2014 end a taxpayer's Virginia domicile or invoke wage reciprocity?
No. The Maryland apartment, withholding, and return did not outweigh the taxpayer's Virginia license, vehicles, voter registration, and surrounding years of Virginia residency. Reciprocity did not app…
Did a civilian spouse share the service member's out-of-state domicile without ever becoming physically present there?
No. The husband established Virginia domicile through his abode, job, resident filing, vehicle, and license. After marriage he could not acquire the wife's other-state domicile without physical presen…
Could spouses file a joint Virginia resident return while subtracting all income of the nonresident service member?
No. Electing a joint Virginia resident return required computing both spouses as residents. Because the wife was actually a nonresident service member, the couple could amend to separate treatment and…
Did moving, working, and leasing a home in another state end Virginia domicile when the taxpayer kept major Virginia ties?
No. The taxpayer likely established a home and indefinite employment in State A, but he did not prove abandonment of Virginia domicile. Renewing a Virginia driver's license while living away, along wi…
Could a taxpayer overturn a Virginia residency assessment without supplying the domicile information the Department requested?
Not on the record provided. The taxpayer retained a Virginia driver's license and vehicle registration, filed Virginia resident returns before and after 2013, and did not answer the domicile questionn…
Did working and leasing a home abroad end Virginia domicile when the taxpayer's family and major connections remained in Virginia?
No. Employment, housing, a driver's license, and an unsuccessful permanent-residency application showed an effort to establish domicile abroad. But the taxpayer did not prove abandonment of Virginia b…
Did living in other states end a couple's Virginia domicile when they kept a Virginia home, business interests, licenses, and registrations?
No. Even if the couple acquired domicile in State A, they did not prove that they abandoned Virginia. They kept a Virginia residence, business interests, driver's licenses, vehicle registrations, and …
Did a worker change domicile after moving from Virginia for a permanent out-of-state job, making Virginia wage withholding refundable?
Yes. The worker accepted permanent employment, obtained housing and a driver's license, registered a car, and took steps to sell Virginia property. Although his wife and some assets remained in Virgin…
Did a taxpayer who moved abroad establish that he was no longer domiciled in Virginia for 2013?
Yes. After weighing all facts, Virginia found the taxpayer was not domiciled in the Commonwealth during 2013 and abated the assessment. His foreign residence, spouse's citizenship and property abroad …
Did a former Virginia resident change domicile while attending school and later working in other states during 2013?
Partly. She remained a Virginia domiciliary while in graduate school, but changed domicile when she moved for indefinite employment in June 2013. Her pre-move capital gains were Virginia income, yet f…
Did living and working in another state prove that a taxpayer had abandoned her Virginia domicile for 2013?
No. Out-of-state employment and withholding did not prove a permanent domicile change where she retained a Virginia address, license, and vehicle registration and gave incomplete residence and voting …
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These are official tax letter rulings and advisory opinions issued by Virginia's revenue authority in response to questions from specific taxpayers about how the tax law applies to their facts. A ruling is binding on the department only for the taxpayer who requested it and cannot be relied on by anyone else, but it is strong evidence of how the state reads the law. Every ruling above has a plain-English question and short answer, plus a link to the full original source.