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 lease and claimed out-of-state driver's license prove that a taxpayer had abandoned Virginia domicile for 2014?
No. The taxpayer showed some ties to another state, but Virginia records still showed a vehicle and driver's license here, and his federal return used a Virginia address. Because he bore the burden of…
Could a nonfiler overturn a Virginia income-tax assessment merely by saying he lived in another state and then attended out-of-state graduate school?
No. The taxpayer did not answer Virginia's documentation request or prove that he had abandoned Virginia domicile and acquired another one. Because the assessment was presumed correct, Virginia upheld…
Did saying that a married couple paid income tax in Virginia and another state prove that they had changed domicile for 2012?
No. The couple did not provide objective evidence that they abandoned Virginia domicile and acquired another one, and paying tax in two states did not establish the change. Virginia kept the best-info…
Did claiming an out-of-state residence from 2011 through 2015 overturn a Virginia best-information assessment for 2012 without supporting records?
No. Although the taxpayer said he lived elsewhere from July 2011 until February 2015, he ignored Virginia's documentation request and supplied no substantial evidence about his domicile. The 2012 asse…
Did saying she moved out of Virginia in March 2013 prove that a nonfiler was not subject to Virginia income tax for 2012?
No. The claimed March 2013 move did not document the taxpayer's 2012 status, and she did not answer Virginia's records request. The assessment remained presumed correct, but Virginia allowed one final…
Could a nonfiler overturn a 2012 Virginia assessment merely by claiming residence in another state without supplying the requested records?
No. A bare claim of residence elsewhere did not prove abandonment of Virginia domicile, and the taxpayer ignored Virginia's documentation request. The best-information assessment remained presumed cor…
Was an out-of-state college student a Virginia resident for tax purposes after maintaining a Virginia abode for more than 183 days in 2012?
Likely yes. The student could retain domicile in another state, but Virginia's separate actual-resident rule applies when a person maintains a Virginia abode for more than 183 days. Her spring and fal…
Was a foreign citizen who lived and worked abroad in 2012 exempt from Virginia resident tax even though he retained a Virginia house, vehicles, and license?
He was not taxable as a Virginia resident for 2012, but he still owed Virginia tax as a nonresident on rent from his Virginia house. The federal substantial-presence test did not control Virginia resi…
Did a temporary State Department assignment abroad make a Virginia couple nonresidents and allow them to exclude the husband's overseas income?
No. The couple kept their permanent Virginia home, voter registrations, vehicles, licenses, and intent to return, so the temporary overseas posting did not end domicile. Virginia taxed the husband's f…
Could a taxpayer obtain full Virginia refunds for 2009-2013 by claiming foreign domicile after filing 2009 late and retaining strong Virginia ties?
No. The 2009 full-refund claim was filed after the three-year deadline, and the two-year assessment-payment exception did not apply because the domicile claim went beyond the IRS-income adjustment ass…
Did an overseas assignment establish foreign domicile when the taxpayer kept a Virginia license, voting and vehicle ties, and intended to return?
No. Although the taxpayer leased a home, licensed vehicles, and obtained a driver's license abroad, he retained Virginia voter and vehicle ties, renewed his Virginia license, claimed he filed Virginia…
Could a military spouse avoid Virginia income tax for 2009 and 2010 by claiming the servicemember's out-of-state domicile?
No. The Department found that the spouse had established Virginia domicile after moving there in 2008. The Servicemembers Civil Relief Act did not let her simply elect her spouse's domicile, and the r…
Did buying an out-of-state home and changing a driver's license and voter registration prove that a taxpayer abandoned Virginia domicile?
No. Although the taxpayer bought a home and changed a license, vehicle registration, and voter registration in another state, he retained a jointly owned Virginia home where he stayed, operated his bu…
Did a married couple prove that the husband left Virginia before 2013 and the wife changed domicile to another state in April 2013?
Yes. The evidence showed that the husband was domiciled in another state throughout 2013 and spent only about 60 days working in Virginia, while the wife abandoned Virginia and began residing exclusiv…
When did a Virginia resident working and traveling abroad establish a new foreign domicile during 2012?
The taxpayer remained a Virginia domiciliary resident until August 2012, when he began leasing a home in the foreign country where he had accepted employment. Time spent traveling or temporarily carin…
Did a taxpayer prove he was not a Virginia resident in 2011 after ignoring requests for domicile records?
Not yet. The taxpayer said he had lived outside Virginia since 2004, but Virginia records showed later resident returns, an active Virginia driver's license, and financial documents sent to a Virginia…
Did overseas contract work make a husband a Virginia part-year resident when his family home and other domicile ties remained in Virginia?
No. The husband remained a Virginia domiciliary resident while working abroad because he kept a permanent Virginia home with his wife, vehicles and a driver's license there, and presented no evidence …
Could a nonfiler overturn a 2012 Virginia assessment by claiming domicile in another state but providing no objective evidence?
No. The taxpayer ignored two residency-document requests and provided no objective evidence that he had abandoned Virginia domicile and acquired another one. The best-information assessment remained p…
Did a military home of record in another state prevent Virginia from treating a service member as domiciled in Virginia for 2012?
No. The service member's home of record did not outweigh his long-term Virginia home, driver's license, vehicle registrations, resident returns, family residence, and decision to remain after retireme…
Did the 2009 military-spouse law automatically end a spouse's existing Virginia domicile without personal presence in the service member's state?
No. The military-spouse amendment was not retroactive and did not let the taxpayer simply elect her spouse's domicile. Because she had established Virginia domicile and did not acquire personal presen…
Did a three-year foreign job and another state's license, voting, and vehicle records prove that a Virginia domiciliary changed domicile?
No. The taxpayer's three-year foreign assignment was for a definite term, and she showed no permanent intent to remain abroad. Although she obtained another state's license, voter registration, and ve…
Should a taxpayer who moved into Virginia in May 2010 file as a full-year resident after an IRS income adjustment?
No. Virginia found that the taxpayer became domiciled in the state in May 2010 rather than being a full-year resident. He had to file Form 760PY, report income attributable to the Virginia-residence p…
Did a military spouse keep her former-state domicile after moving to Virginia, renting out that home, and obtaining a Virginia driver's license?
No. Virginia found that the spouse did not maintain enough ties to her former state: its home became rental property, vehicles were registered only to the service member, and she obtained and kept a V…
What Virginia return was required when a taxpayer moved into the state and established domicile in August 2011?
A part-year return. Virginia found that the taxpayer established domicile when he moved into the state in August 2011, so he was not a full-year resident. He had to file Form 760PY and report income a…
Did a taxpayer prove she was domiciled outside Virginia in 2011 without providing the requested objective records?
Not yet. The taxpayer claimed another-state residence but supplied no objective evidence despite two information requests, while her federal return used a Virginia mailing address. The assessment rema…
Did an apartment-complex statement prove that a taxpayer with a Virginia W-2 address was not a Virginia actual resident in 2013?
No. A Virginia address on the taxpayer's W-2 triggered a request for residency evidence. An apartment-complex statement from State B, without additional proof and against other returns showing nonresi…
Did moving abroad for a temporary job end a taxpayer's Virginia domicile when he kept major Virginia ties and planned another state later?
No. The taxpayer's foreign job was temporary, he did not intend to remain abroad, and he kept Virginia homes, family, voter registration, vehicles, and a driver's license. He also could not establish …
Did an active-duty service member and spouse have the same Virginia residency result for 2012?
No. The husband maintained another-state domicile through his military legal-residence certificate, driver's license, and voter registration, so his active-duty income was not treated as Virginia resi…
Did Foreign Service assignments and an intent to retire in another state end a couple's established Virginia domicile for 2010?
No. The couple established Virginia domicile before the overseas assignments, which were temporary. An intention to retire in another state and withholding there did not establish domicile without ren…
Could a taxpayer who moved to Virginia in November overturn a 2011 income-tax assessment merely by saying he worked in Virginia for only two weeks?
No. The taxpayer admitted moving to Virginia in November and had Virginia-source income, but provided no objective evidence or return showing the correct 2011 liability. Virginia gave him 60 days to f…
Did Virginia driver's licenses and federal-only absentee voting keep a couple domiciled in Virginia after they established a permanent home abroad?
No. The couple proved that they sold their Virginia home, established a permanent home and tax residency abroad, owned no Virginia property, and voted only in federal elections under the overseas-vote…
Did renewable one-year overseas work end Virginia domicile, and was accountant advice reasonable cause to waive the late-filing penalty?
No. Renewable one-year overseas employment was temporary, while the taxpayer bought a Virginia home, kept a Virginia vehicle and license, and used a Virginia address. Virginia found he remained domici…
Did a taxpayer's unsupported claim of another-state residence justify changing Virginia's 2011 income-tax assessment?
No. The taxpayer used a Virginia address on the federal return, had filed Virginia returns before 2011 and again for 2012 and 2013, and supplied no objective evidence of the claimed other-state domici…
Did an overseas job transfer end a couple's Virginia domicile when they kept a Virginia home, vehicles, licenses, and obtained a Virginia divorce?
No. The couple had established Virginia domicile in 2010 and retained a Virginia home, vehicles, licenses, and the wife's presence while the husband worked abroad. A Virginia divorce order also recite…
Did a West Virginia resident owe Virginia income tax on wages earned while working in Virginia in 2011?
No. Virginia found that the taxpayer had established West Virginia domicile for 2011 despite renewing a Virginia driver's license. Because he was a West Virginia resident earning wages in Virginia, th…
Was a military spouse working in Virginia in 2008 a resident, or a nonresident taxable only on Virginia-source wages?
Nonresident. Virginia found that the military spouse had not abandoned his other-state domicile and spent no more than 183 days in Virginia. He still owed Virginia tax on wages earned from Virginia em…
Was a military spouse exempt from Virginia income tax when she claimed another domicile but had a home, job, voter registration, and license in Virginia?
No. Virginia found the spouse was a Virginia domiciliary because she showed no continuing connections to the claimed state and established a home, employment, voter registration, and a driver's licens…
Did a taxpayer remain a Virginia domiciliary in 2011 despite owning a Virginia home and maintaining family and business connections there?
No. Although the taxpayer still owned a Virginia home and had family, business, and vehicle connections there, his long-running State A home, license, vehicle registration, voter registration, nonresi…
Did returning to Virginia for about two weeks within six months of moving away prevent a taxpayer from proving a domicile change?
No. Although returning to Virginia within six months was prima facie evidence that the taxpayer had not abandoned Virginia domicile, the full record showed a genuine move from State B to State A. Virg…
Did a military spouse prove that she retained another state's domicile and qualified for relief from Virginia income tax for 2011?
No. The taxpayer did not prove that she retained the same out-of-state domicile as her military spouse. Living and working in Virginia, registering her vehicle there, and obtaining a Virginia driver's…
Did Virginia voting, driver's licenses, a vehicle, and an investment home make foreign residents Virginia domiciliaries for 2009?
No. Although the taxpayers owned a Virginia investment home, registered to vote, obtained Virginia driver's licenses, and registered a vehicle, they retained their established foreign domicile and had…
Could nonresidents use Virginia 529 programs, deduct contributions on a Virginia return, and avoid creating Virginia domicile?
Yes. The inVEST, CollegeWealth, and CollegeAmerica programs were open nationwide, and a nonresident with Virginia-source income could deduct eligible contributions when computing Virginia taxable inco…
Did a merchant mariner abandon Virginia domicile by working at sea and leasing a residence in another state while retaining Virginia ties?
No. The taxpayer's out-of-state lease and maritime employment did not show a permanent abandonment of Virginia. He retained Virginia voter registration, a Virginia-resident spouse, return visits, powe…
Did an inherited Virginia home, vehicle registration, driver's license, and federal-return address make a long-term foreign resident taxable as a Virginia resident?
No. The taxpayer had lived and worked abroad since 2006, held foreign residency status, participated in professional and civic life there, and filed a foreign tax return. Virginia found that he change…
Could a California domiciliary who was an actual Virginia resident claim a Virginia credit for California tax on income earned outside both states?
No. Virginia treated the taxpayer as a California domiciliary and Virginia actual resident, and did not allow a Virginia credit for California tax on income from outside Virginia. She could amend with…
Did a military spouse remain a Virginia domiciliary in 2009 after selling her Virginia home and moving abroad with the service member's orders?
No. The spouse sold her Virginia home and vehicles, moved to the foreign duty station, established a home there, used the foreign address on her federal return, and let her Virginia driver's license e…
Was an adult whose parents moved to Virginia still a Virginia domiciliary after a permanent foreign transfer, marriage, home purchase, and residence visa?
No. The taxpayer was already an adult when her parents moved to Virginia, and by 2008 her permanent foreign job, home, marriage, and residence process established a new domicile. She had never lived, …
Could a Virginia part-year resident claim credit for New York tax on wages earned after moving to Virginia while continuing to work in New York?
Only if she could prove she was not also a New York resident while domiciled in Virginia. A Virginia part-year resident may receive the credit for tax paid to another state where she was a nonresident…
Did a taxpayer living abroad remain a Virginia resident in 2009 because she kept a Virginia license and voter registration?
No. After weighing all evidence, Virginia found that the taxpayer abandoned her Virginia domicile and established domicile in another country by 2005. Selling her Virginia home and vehicle and living …
Did periodic moves to another state, without a permanent home or steady job there, establish a new domicile outside Virginia for 2009?
No. The taxpayer moved between Virginia and State A as employment required, but did not establish a permanent abode, steady employment, or significant State A ties beyond a vehicle registration. Her V…
Did a couple living in their out-of-state home for medical treatment reestablish Virginia domicile because they owned a Virginia townhouse and used its address?
No. The couple moved into their State A home in 2009 so the husband could receive nearby hospital treatment. Although they owned Virginia property, registered two children's vehicles there, and used a…
Did unsupported factual disagreements and previously requested but unproduced records justify reconsidering Virginia's 2005-2010 income-tax assessments?
No. The taxpayer did not satisfy a reconsideration ground or provide new documentation supporting nonresidency or disputing Virginia-source income. State A records contradicted his license claim, he r…
Could a military spouse claim another state's domicile and Virginia withholding refunds when residence and intent were not established at the same time?
No. The spouse lived in State B only from July through September 2008, while vehicle registrations and voter registration occurred later. Because personal presence and intent to make State B a permane…
Could a taxpayer abate Virginia's 2009 assessment by producing only a State A return showing residence there for the first six months?
Not on that record. A State A return showing residence there for the first six months did not establish that Virginia domicile had been abandoned or quantify the correct liability. Because the taxpaye…
Did a federal employee remain domiciled in another state after settling with his family and conducting his affairs in Virginia?
No. The taxpayer's declaration of State A domicile was outweighed by his conduct: he had not lived there since 1999, documented no continuing ties, and instead maintained a family home, driver's licen…
Did a retiree who kept homes in two states become domiciled in Virginia after renewing a Virginia driver's license and maintaining vehicles there?
Yes. After weighing all evidence, Virginia found the taxpayer changed domicile to Virginia in 2007. Renewing a Virginia driver's license, relinquishing the other state's license, allowing most registr…
Could a Virginia domiciliary avoid Virginia tax on another state's pension because he lived there more than 183 days and filed returns there?
No. The taxpayer remained domiciled in Virginia, so Virginia could tax all of his retirement income even though he spent more than 183 days and filed resident returns in another state. A credit might …
Did a military spouse qualify for Virginia nonresident withholding relief by sharing the service member's domicile in another state?
Yes. The preponderance of evidence showed that the taxpayer and active-duty spouse had established and maintained domicile in the same other state. Their legal-residence certificate, vehicle registrat…
Did a military spouse prove she shared the service member's out-of-state domicile and qualified for Virginia withholding refunds?
Not on the record submitted. The spouse bought a Virginia home, obtained a Virginia driver's license, registered vehicles in Virginia, used a Virginia address on federal returns, and produced no evide…
How should someone who moved from Maryland to Virginia in November 2009 file, and could he claim credit for Maryland wage tax?
He should file 2009 Form 760PY and report only income received during the Virginia-resident period, with prorated exemptions and standard deduction. Because Virginia-Maryland reciprocity exempted a Vi…
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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.