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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If I move to Virginia partway through the year, am I taxed as a full-year resident -- and can I get a credit for the income tax I paid to my old state?
You are taxed only as a part-year resident. This taxpayer moved from another state to Virginia in 2020; the Department had assessed her as a full-year Virginia resident, but the Commissioner held she …
If I move out of Virginia but keep some ties here -- like renewing my Virginia driver's license or keeping a house -- when do I stop being a Virginia resident for income tax?
The assessment was abated -- the taxpayer successfully changed his domicile out of Virginia. The Department had assessed him as a 2020 Virginia resident, but he had moved to another state ("State A") …
I live and work overseas but my family stays in our Virginia home and I kept a Virginia license and voter registration. Am I still a Virginia resident for income tax?
The assessment was abated -- he was not a Virginia resident. This taxpayer had lived and worked abroad ("Country A") since 2008, but the Department taxed him as a 2019 Virginia domiciliary resident be…
I retired and moved to another state, but I kept my Virginia house and license and never answered Virginia's residency questionnaire. Am I still a Virginia resident?
The assessment was upheld -- the taxpayer stayed a Virginia domiciliary resident because he failed to prove he abandoned Virginia. This is the losing counterpart to Virginia's domicile wins: to change…
I moved to another state right before the COVID-19 pandemic but never got that state's driver's license or vehicle registration. Am I still a Virginia resident for taxes?
The assessment was abated and her payments refunded with interest -- she was not a Virginia domiciliary resident for 2020. She had moved around for work for years and began living and working in anoth…
I moved to another state and vote there, but I still own rental houses in Virginia and kept my Virginia driver's license. Am I still taxed as a Virginia resident?
The assessment was abated -- she was not a Virginia domiciliary resident for 2019. She had moved in 2015 into a home she owned in another state ("State A"), gotten a State A ID card, and, most importa…
I already live in another state but got a Virginia driver's license and registered a car here. Does that make me a Virginia resident for income tax?
The assessment was abated -- the taxpayer was not a Virginia resident for 2019. He had been domiciled in another state ("State A") since 2006, and the Department had already accepted that change when …
I've lived and worked abroad for years but kept a Virginia driver's license, voter registration, and a couple of properties. Am I still a Virginia resident for income tax?
The assessments were abated -- the taxpayer successfully changed his domicile from Virginia to a foreign country ("Country A") before 2019, so he owed no Virginia income tax for 2019 or 2020. Changing…
Virginia says IRS data shows I should have filed a return, but I think I lived in another state. What happens if I don't respond to the Department's questions?
The assessment was upheld -- but with a final 30-day chance to fix it. The Department got IRS data suggesting this taxpayer should have filed a 2020 Virginia return; he hadn't, and when asked for info…
I took an out-of-state job for two years, then moved back to Virginia — was I a Virginia resident the whole time for income tax?
Yes — he never abandoned his Virginia domicile, so he was taxable as a Virginia resident for 2020 (with credit for the other states' tax). A Virginia domiciliary took a job in 'State A' in February 20…
I moved to another state years ago but kept voting in Virginia and renewing my Virginia driver's license — am I still a Virginia resident for income tax?
Yes — he stayed a Virginia domiciliary resident, so his income was taxable in Virginia (though he gets credit for the other state's tax). A retiree left Virginia in 2011, moved to 'State A' in 2014, b…
Virginia assessed me income tax based on IRS data, but I didn't live or work in Virginia that year — isn't saying so enough to cancel the assessment?
No — the assessment was upheld because the taxpayers never backed up their claim. IRS information suggested a married couple should have filed a 2019 Virginia return; they hadn't, and when the Departm…
My spouse moved to another state for work and voted and got licensed there while I stayed in our Virginia home — are we both still Virginia residents?
Split decision — the husband successfully changed his domicile to State A, but the wife, who never left Virginia, remained a Virginia resident. The husband took a job in State A in December 2019, inte…
I moved to another state for a permanent job, but COVID closed the office and I came back to Virginia — did I ever stop being a Virginia resident for income tax?
He stayed a Virginia domiciliary resident for 2020 — though he gets a credit for the other state's tax. The taxpayer moved to State A in October 2019 for a permanent job and leased a home there. When …
We didn't file a 2019 Virginia return because the income was earned in another state — are we still Virginia residents, and can we at least get credit for the other state's income tax?
The couple lost on residency but kept a path to relief. This was the merits determination after P.D. 24-21 (3/13/2024) gave a husband and wife one final chance to file a 2019 Virginia return or comple…
I sold my Virginia home and moved to another state, but kept my Virginia driver's license because of pandemic DMV closures — am I still taxable as a Virginia resident?
The taxpayer WON — selling her Virginia home was 'a very strong example' of intent to abandon Virginia, and the 2020 assessment was abated. The case began as a nonfiler inquiry (IRS information sugges…
I left Virginia years ago but still owned my old house and stayed there for two months between out-of-state jobs — does that pit stop make me a Virginia resident again?
The taxpayer WON — a two-month stopover at his old Virginia house between out-of-state jobs did not reestablish Virginia domicile, and the 2020 assessment was abated. The case began as a nonfiler inqu…
I moved from Virginia to Puerto Rico to live there permanently, but I kept my Virginia driver's license — did I really change my domicile, or does Virginia still tax me?
The taxpayer WON — the totality of the factors showed he changed his domicile from Virginia to Puerto Rico before 2019, and the assessment was abated. The Department had opened a nonfiler inquiry afte…
I disputed a Virginia income tax assessment because I'm a military spouse who shouldn't have been taxed as a resident — why won't the Department even look at my case, three years later?
Because both the 90-day appeal deadline AND the separate 3-year protective-claim-for-refund deadline had already expired by the time she filed — years of informal correspondence with the Department di…
I moved out of state for work years ago and pay taxes there now, but I still have a Virginia driver's license and a house I visit regularly — does Virginia still consider me a resident?
Yes, likely -- because the taxpayer kept renewing his Virginia driver's license and returned regularly to a Virginia residence he retained, the Department found he hadn't proven he abandoned his Virgi…
The Department ruled against me on my residency dispute, and I found six other cases where taxpayers won similar arguments — can I get my case reconsidered on that basis?
No -- simply disagreeing with the result, even by pointing to six other cases where taxpayers WON similar domicile arguments, doesn't meet any of the four narrow criteria Virginia requires for reconsi…
I'm active-duty military stationed outside Virginia claiming a different home state -- is claiming a tax credit on my other state's return enough by itself to prove I'm not a Virginia resident?
No -- claiming a credit on another state's return for taxes paid to Virginia doesn't, by itself, prove you're not a Virginia domiciliary resident; you need actual evidence like a State of Legal Reside…
I lived and worked in Maryland for over two years and filed a Maryland resident return -- can Virginia still tax me as a resident because I kept my house and driver's license here?
Yes -- Virginia can still tax you as a domiciliary resident if you never actually abandoned your Virginia connections, even after living and working elsewhere for years. A taxpayer and his family move…
I came to Virginia on a student visa, worked here for a few years, then moved back to my home country before returning later on a work visa -- was I still a Virginia resident, and did a 1099 issued to my old Virginia address make me taxable here, for the year I was living abroad?
No to both -- the assessment was abated. The Department flagged that a taxpayer may have owed 2019 Virginia income tax, based on IRS information; no Virginia return was on file, and when he didn't ful…
I moved for a new job in another state, but I still own a Virginia vacation home and briefly got a Virginia driver's license during the move -- does that make me a Virginia resident for tax purposes?
Not necessarily -- a Virginia driver's license and a Virginia vacation home are only two factors among many, and here they didn't outweigh the rest of the evidence pointing to a genuine move. The Depa…
I'm an active-duty servicemember with a Virginia 'home of record,' but I bought a home, got a driver's license, registered to vote, and registered my vehicles in the state where I was actually stationed -- am I still a Virginia domiciliary resident just because Virginia is listed as my home of record?
No -- 'home of record' and legal domicile are different things, and this servicemember's real, affirmative connections to his duty-station state controlled. A military servicemember had listed Virgini…
I moved out of Virginia for a job years ago and have lived and worked in two other states since, but my spouse, kids, some vehicles, and my driver's license and voter registration stayed in Virginia -- am I still a Virginia resident for income tax purposes?
Still a Virginia domiciliary resident -- because he never fully cut his Virginia ties even after living and working in two other states for years. The Department received IRS information suggesting th…
The Department assessed me for Virginia income tax based on IRS information, and I told them my husband didn't work in Virginia that year -- isn't that enough to get the assessment corrected?
No -- a domiciliary resident of Virginia owes Virginia tax on all their income regardless of where they actually worked, so simply asserting 'he didn't work in Virginia' doesn't address whether Virgin…
I moved into my fiancee's home in another state years ago, but I still own a Virginia home I use as a vacation property and visit regularly, kept renewing my Virginia driver's license, and stayed registered to vote in Virginia until recently -- am I still a Virginia domiciliary resident for tax purposes?
Still a Virginia domiciliary resident -- largely because he renewed his Virginia driver's license in November 2020, five years after he says he moved out. The taxpayer had lived and worked in Virginia…
If my employer relocates me out of state and I later separate from my spouse who stays in Virginia, have I abandoned my Virginia domicile?
Yes, in this case the taxpayer successfully proved he'd abandoned his Virginia domicile -- even though he kept his Virginia driver's license for years and retained some Virginia property connections t…
I moved out of Virginia years ago for work, but my spouse and kids stayed in our Virginia home, I kept renewing my Virginia driver's license and voter registration, and I even teleworked from Virginia during the pandemic while still filing returns in my new state -- am I still a Virginia domiciliary resident?
Still a Virginia domiciliary resident -- his own conduct, especially teleworking from the family's Virginia home during the pandemic while still filing returns in his new state, undercut his domicile-…
I lived abroad in my late spouse's home country for over a decade after we married, but I couldn't legally own property there so I stayed in hotels during part of that time, and I kept my Virginia home, car, and driver's license the whole time for when I traveled back for medical care -- did I actually establish domicile in that other country?
No -- living in hotels abroad, without a permanent place of abode there, combined with extensive retained Virginia connections, meant he never established the new domicile the law requires. A taxpayer…
I lived and worked abroad for over 30 years, married two different citizens of that country, became a permanent resident and voted there -- but I never gave up my U.S. citizenship or my Virginia driver's license, which I've held continuously since 1979. Did I actually establish domicile abroad, or does keeping my Virginia license mean I never really left?
Yes -- he successfully established domicile in Country A, and keeping his Virginia driver's license the entire time didn't change that outcome. A taxpayer moved to Country A in 1988, married a Country…
I established Virginia domicile while working here, then tried to switch back to my old home state before taking an overseas government assignment -- but I never actually lived in that state again. Am I still a Virginia resident for tax purposes?
Yes -- he remained a Virginia domiciliary resident, because he never actually re-established physical presence in the state he claimed as his new domicile, and overseas government assignments rarely c…
I've lived and worked abroad for ten years, but I still have a Virginia driver's license and once registered to vote in Virginia -- does that mean I'm still a Virginia domiciliary resident who owes Virginia income tax?
Not necessarily -- ten years of genuine life abroad (work, a driver's license, vehicles, children born and schooled there, and eventually a home purchase) outweighed an old, unrenewed-going-forward Vi…
I moved out of Virginia and later moved again to a different state, but I never got around to updating my old Virginia driver's license -- am I still on the hook for Virginia income tax?
No -- when a taxpayer had already documented his move out of Virginia at the time it happened (by filing a part-year resident return) and later moved again to a second state, the Department confirmed …
I already established that I'd moved away from Virginia, but I later got a new Virginia driver's license just for a work benefit -- does that mean I re-established Virginia domicile even though I never actually moved back?
No -- a Virginia driver's license by itself can't re-establish Virginia domicile without also actually moving back and physically living there with intent to stay, because domicile legally requires bo…
If I move to Virginia partway through the year but haven't yet finished changing my legal domicile, is income I receive right after I arrive taxable by Virginia?
Yes. Once you spend more than 183 days in Virginia during the year, Virginia taxes you as an actual resident starting on the day you first arrived -- even if you hadn't yet finished changing your lega…
If I move to Puerto Rico and file a Puerto Rico resident return, does that automatically end my Virginia tax residency?
No, not by itself. Filing a Puerto Rico resident income tax return and meeting Puerto Rico's own bona fide residency tests are not a substitute for actually abandoning your Virginia domicile -- and he…
Can I still prove I abandoned my Virginia domicile years ago even if I renewed my Virginia driver's license and kept vehicles registered there in the meantime?
Yes, on these facts. Even though the taxpayer renewed her Virginia driver's license and kept vehicles registered in Virginia during part of the period, her roughly 12-year absence from Virginia, her p…
If I work and file resident returns in another state but keep a Virginia driver's license and property, am I still taxed as a Virginia resident?
Yes, if you never actually abandoned Virginia. A taxpayer who lived and worked in Maryland, paid Maryland tax, and filed Maryland resident returns still remained a taxable Virginia domiciliary residen…
Can I get the Department of Taxation to reconsider a final domicile determination just by pointing to a similar case that came out differently?
No. Pointing to a different case that came out favorably for another taxpayer does not meet any of Virginia's four narrow criteria for reconsidering a final determination -- reconsideration requires m…
Does the Servicemembers Civil Relief Act exempt a military spouse from Virginia income tax if she gets a Virginia driver's license and registers to vote in Virginia?
No, not on these facts. A military spouse is only exempt from Virginia tax on the strength of the Servicemembers Civil Relief Act if she maintains sufficient connections with the service member's clai…
Does an extended overseas government assignment -- even one repeatedly extended for years -- establish a new foreign domicile that ends Virginia tax residency?
No, not on these facts. A Department of Defense civilian employee's overseas assignment -- even after being extended twice, ultimately spanning about five years -- remained a temporary, non-permanent …
When exactly does a domicile change take effect if I was searching for a new home in another state for months before I actually bought it?
Yes -- domicile can change before you actually complete the formal steps (like buying a home or surrendering your old driver's license) if your conduct over time clearly shows the intent. A taxpayer w…
What happens to my Virginia residency appeal if I don't respond to the Department's requests for more information?
A taxpayer who ignored two written requests to complete a domicile questionnaire was still given one final 30-day chance to respond before the Department finalized its position -- but was also warned …
Does a college student who later gets a driver's license and registers a vehicle in their college state become a part-year Virginia resident from the date they graduate?
Yes. College students generally don't establish domicile where they merely attend school, but once this student graduated and then obtained an out-of-state driver's license and vehicle registration --…
If I keep my Virginia driver's license and voter registration while living out of state, have I really abandoned my Virginia domicile?
No, her Virginia domicile was not abandoned. Even though she lived and worked in another state for over a year, she kept her Virginia driver's license, vehicle registration, and voter registration -- …
Can I still be found to have successfully changed my Virginia domicile even if I kept my Virginia driver's license and car registration?
Yes -- a taxpayer who went to law school, was admitted to the bar, took a job, leased homes, and registered to vote in a new state was found to have successfully changed her domicile away from Virgini…
If I can't pinpoint the exact dates I got a new state's driver's license, vehicle registration, and voter registration, can I still prove I successfully changed my domicile away from Virginia?
Yes -- even though the taxpayer couldn't pin down the exact dates he first obtained his new state's driver's license and vehicle registration, the Department found the overall preponderance of evidenc…
Can I get a Virginia Tax Commissioner determination reconsidered just because I think the conclusion was wrong, or because a similar-sounding prior ruling came out differently?
No -- Virginia's reconsideration process requires meeting one of four specific grounds (misstated facts, a change in law, misapplied policy, or genuinely new evidence unavailable at the time of the or…
If I move out of Virginia but keep my Virginia driver's license and vehicle registrations, will Virginia still treat me as a domiciliary resident for income tax?
No, not automatically -- the Department found the taxpayer had genuinely established domicile in another state (leasing homes there, filing that state's tax returns, and voting there) even though he k…
If my spouse moves to another state and I stay in Virginia until later in the year, do we file as Virginia residents, part-year residents, or nonresidents?
It depends on each spouse's own facts -- spouses can have different domicile outcomes in the same year. Here, the wife successfully proved she'd abandoned Virginia domicile despite keeping (but never …
If I graduate from a Virginia college, move away for a job, but forget to update my driver's license and vehicle registration, have I still changed my domicile away from Virginia?
Yes, potentially -- the Department found that a recent college graduate had genuinely abandoned Virginia domicile and established a new one in the state where he took his first job, even though he sti…
If I owned a home, held a driver's license, and voted in Virginia for decades before moving to another state for part of the year, can I still claim I abandoned my Virginia domicile?
Generally no -- when a taxpayer's Virginia home ownership, driver's license, and voter registration all predate any time spent in the other state, the Department treats him as already domiciled in Vir…
Can I still prove I abandoned my Virginia domicile if I kept my Virginia driver's license and vehicle registration the whole time I lived in another state?
Yes -- it's possible, though retaining a Virginia driver's license and vehicle registration usually works against you. Here, a taxpayer who moved to another state for an indefinite job, leased housing…
If I move out of Virginia but don't get a new driver's license, vehicle registration, or voter registration in my new state right away, has my domicile actually changed?
Not necessarily -- leasing a residence in a new state isn't enough by itself to establish a new domicile if you don't also get a driver's license, register vehicles, or register to vote there; a taxpa…
If my spouse moved to Virginia to be with me but never really settled here before we both relocated together, can Virginia still tax a retirement distribution he received?
No -- federal law reserves the right to tax a retirement income distribution exclusively to the recipient's actual state of residence at the time of the distribution, so a husband who moved to Virgini…
I retired and moved back to the state I lived in before working temporarily in Virginia -- but I still renewed my Virginia driver's license once during that time. Does that block me from proving I'm no longer a Virginia domiciliary?
Not necessarily -- even renewing a Virginia driver's license, normally strong evidence of continued Virginia domicile, can be outweighed by overwhelming and well-explained ties elsewhere. Here, a form…
I moved out of Virginia, leased a home, and eventually bought a house in another state -- but I kept renewing my Virginia driver's license and registered a new car in Virginia. Does that defeat my claim that I'm no longer a Virginia domiciliary?
Yes, it can -- repeatedly renewing a Virginia driver's license over multiple years, and registering a new vehicle in Virginia, are treated as strong, ongoing evidence that you still consider Virginia …
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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.