hillsboro15269
Level 4

I hope someone from Virginia can help me.

I've never done a Virginia return, and this one is kicking my butt.

Non-resident, TP lived in DC, but has VA income (then moved to OR, because 2 states isn't complicated enough). 

I'm trying to figure out how to allocate the non-Virginia income so he doesn't have to pay Virginia taxes on all of his income.

Now, it seems stupid to me that the software can't figure out that if the W-2 has VA in box 15, then heck, maybe that's the VA income? And if box 15 has anything other than VA in it, ya think maybe that's NOT VA income? I mean, I know there are exceptions, but it seems to me that they could at least default to that, and allow over-writes, rather than defaulting to ALL income, regardless of the state, is taxable to ALL states, and force the preparer to over-write ALL the state software.

But whatever.

Now, I've done part-year/nonresident state returns for at least 8 or 9 different states -- including NY and CA, two of the most complicated in the country -- and they all have a very clear place for the preparer to enter federal vs. state income.

There is nothing like that anywhere on the Virginia forms that I can find.

So I'm in the Form 763, line 9, and it's trying to charge all $50k of income as Virginia source income. Which it isn't. I look at lines 1-8, and the only place that looks even remotely like where I would enter non-Virginia-source income would be line 7.

So I click on the little blue magnifying glass on line 7, and it takes me to Schedule 763 ADJ. The only place there that looks like it might fit the bill is "Other Subtractions." (Because it really doesn't belong anywhere else.) So I click there, and it lists every fracking obscure type of income, except for PLAIN OLD ORDINARY INCOME THAT ISN'T EARNED IN VIRGINIA?!?!?!?!?

So where do I put non-Virginia income?!?!?!?

To top it all, I quoted $350, and the customer thinks that's too high, so I might just give everything back to the customer and tell them to go to H&R Block, because I'm so frustrated with this.

But I would like to know if Virginia really thinks it's entitled to double-taxation of everyone's income?

0 Cheers