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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Was a husband who owned a Virginia home, license, vehicles, and voter registration still a nonresident when his permanent ties remained elsewhere?
Yes, he remained a nonresident for 2009. Although he owned a Virginia home and held a Virginia driver's license, voter registration, and vehicles, he spent fewer than 183 days in Virginia and had not …
Did a merchant mariner abandon Virginia domicile by taking an indefinite out-of-state job and using motels or a training center between voyages?
No. Although the mariner had indefinite employment and a post-office box in another state, he never established a permanent abode there and retained major Virginia ties: his wife, voter registration, …
Would out-of-state employees who commuted to Virginia and rented an apartment become Virginia residents?
No, based on the proposed facts. They would retain their out-of-state homes, families, licenses, registrations, banking ties, and intent to return, and would spend no more than 183 days in Virginia. B…
Did leasing homes outside Virginia establish a new domicile when the taxpayer retained Virginia property, licensing, and registration ties?
No. Even if the taxpayer began abandoning Virginia in 2009, she did not establish a new permanent or indefinite domicile in either state where she temporarily leased housing during 2010. She retained …
Did moving to a foreign country establish a new domicile when the taxpayer retained an available Virginia home, voter registration, and driver's license?
No. Although the taxpayer and her husband established a home and employment in another country, their Virginia residence remained available, and she obtained Virginia voter registration and renewed a …
Did returning to a foreign home and job end Virginia domicile when the taxpayer kept a Virginia home, license, vehicles, voting ties, and family connections?
No. Although the taxpayer returned to a permanent home and full-time work in Country A, he kept his Virginia residence, renewed his Virginia driver's license, maintained vehicle and voting ties, and l…
Did a servicemember who lived in Virginia owe Virginia income tax for 2009 and 2011?
Not under the assessments as issued. Virginia treated the servicemember as a nonresident in 2009, so her military pay was protected and her nonmilitary work performed outside Virginia was not Virginia…
Did a military spouse and servicemember remain domiciled outside Virginia for 2010 income-tax purposes?
No. The spouse established Virginia domicile after moving in 2007: she worked full time, obtained a Virginia license and vehicle registration, voted in Virginia, and bought a home with the servicememb…
Did a husband who worked and lived in another state remain a Virginia resident for 2010 and 2011?
No. The husband took an indefinite out-of-state job, established a home there, obtained that state's driver's license, registered a vehicle there, and spent no more than 183 days in Virginia in either…
Was a taxpayer who moved for work in 2009 still a Virginia resident required to file for 2010?
No. The taxpayer moved for an indefinite job, established a home in the other state, surrendered his Virginia driver's license, obtained the other state's license, and registered to vote and registere…
Did the Servicemembers Civil Relief Act preserve a husband's out-of-state domicile for Virginia tax in 2009 and 2011?
No. Military orders alone did not preserve the husband's former domicile after his conduct showed a Virginia change: he filed resident returns, obtained and renewed a Virginia driver's license, regist…
Were a husband and wife Virginia domiciliaries in 2009 because the husband retained and renewed a Virginia driver's license?
No. The wife was continuously domiciled in State A. The husband had abandoned Virginia and established State A domicile in 2005 through indefinite employment, a permanent home, and resident returns. A…
Did a taxpayer disprove Virginia's 2005-2010 estimated assessments by claiming another-state residence and denying Virginia rental income?
No. The taxpayer showed an abode and vehicle in another state, but he kept a Virginia post-office box, renewed a Virginia driver's license in 2010, and was linked to multiple Virginia properties. He d…
Could a Virginia resident obtain out-of-state tax credits without filing Virginia returns for 2007 and 2008?
The taxpayer first had to file Virginia returns. She conceded Virginia domicile and supplied other-state returns but had filed no Virginia return for 2007 or 2008. The Department required both Virgini…
Did a Foreign Service employee change domicile from Virginia to another state before moving overseas?
Not on the evidence submitted. The employee cut Virginia ties and obtained a license, vehicle registrations, and voter registration in another state, but moved from Virginia to an overseas post withou…
Was a nonqualified pension distribution taxable by Virginia when it was earned before the taxpayers moved but paid afterward?
Yes. Although the husband's lump-sum nonqualified pension was earned and payable before the couple moved to Virginia, it was actually distributed in April 2010 after they became Virginia residents. Th…
Did a Foreign Service officer retain California domicile or abandon Virginia domicile during an overseas assignment?
No. Virginia found that the officer abandoned California domicile and established Virginia domicile after moving, buying a home, registering a vehicle, obtaining and renewing a Virginia license, and f…
Did a service member's statement that the military treated another state as home prove her 2009 military pay was exempt from Virginia tax?
Not by itself. The Servicemembers Civil Relief Act protected an existing domicile from changing solely because of military orders, but the taxpayer had filed a Virginia resident return, reported civil…
Did moving abroad and qualifying for the federal foreign-earned-income exclusion end the taxpayers' Virginia domicile?
No. Although the couple lived and worked indefinitely in another country, they kept a Virginia home, vehicles, voting ties, and renewed Virginia driver's licenses, and later claimed Virginia residency…
Could a taxpayer undo her 2009 Virginia resident return without clearly documenting where she lived and established domicile?
Not on the evidence submitted. The taxpayer had some ties to another state but retained a Virginia driver's license until October 2009, filed a full-year Virginia resident return, and had Virginia tax…
Did an other-state return and surrender of a Virginia license prove that a taxpayer changed domicile before 2009?
Not by themselves. The taxpayer filed a 2009 return in another state and had surrendered her Virginia driver's license in August 2008, but she did not provide the additional records Virginia requested…
Did a multi-year work assignment and resident return in another state end a worker's Virginia domicile?
No. Although he lived and filed as a resident in the work state, the assignment appeared temporary and he kept a Virginia home available for his use, voted in Virginia, renewed a Virginia driver's lic…
Did registering to vote in another state change domicile when the taxpayer remained physically overseas?
No. The taxpayer registered to vote in another state but spent 2008 abroad and provided no evidence that he was physically present in the claimed state during 2008 or 2009. Because a new domicile requ…
Did living in another state for 2008 end Virginia domicile, and could the taxpayer claim credit for that state's tax?
Virginia found that the taxpayer remained domiciled in Virginia because she kept stronger permanent ties here, including a Virginia vehicle and a license renewed in October 2008, even though she lived…
Did the taxpayer prove that she had abandoned Virginia domicile during 2008?
Yes. Virginia abated the 2008 assessment because the taxpayer's employment, resident income-tax filing, voter registration, and other evidence showed that she established domicile in another state and…
Did overseas foreign-service assignments prove that a couple had ended Virginia domicile?
Not on the facts presented. Virginia said the couple likely became Virginia domiciliaries during 2004-2007. Although they took substantial steps to abandon Virginia when moving overseas, they showed n…
When did a taxpayer on out-of-state and foreign job assignments successfully abandon Virginia domicile?
Virginia treated him as domiciled here through 2007 but not beginning in 2008. He had abandoned his former state in 2005 by resigning and moving to Virginia, obtaining a Virginia license and mailing a…
Could a Virginia military resident claim the full basic-pay subtraction and also subtract combat pay already excluded from federal income?
No. The extended-active-duty basic-pay subtraction was reduced dollar-for-dollar when basic pay exceeded $15,000 and fully phased out at $30,000. Combat-zone and qualified-hazardous-duty pay could be …
Did living and working in another state end a taxpayer's Virginia domicile and qualify him for Virginia's credit for tax paid to that state?
No. Although the taxpayer maintained a home and worked in State A, he kept and regularly returned to a Virginia residence, received financial documents there, renewed a Virginia driver's license, and …
Did moving to another state with a military spouse end a taxpayer's Virginia domicile for 2008?
No. The taxpayer lived and worked in State A near her military spouse, but filed there as a nonresident, admitted she remained a permanent Virginia resident, kept a Virginia driver's license and vehic…
Could taxpayers reopen a 2004-2006 residency determination after the 45-day reconsideration deadline or appeal 2007-2009 assessments after 90 days?
No. The July 12, 2010 determination for 2004-2006 could be reconsidered only if a qualifying request arrived within 45 days, but the taxpayers waited until May 13, 2011. Their December 2010 assessment…
Did a professional athlete become domiciled in Virginia during a brief visit before moving to a permanent job abroad?
No. The athlete had abandoned Virginia for State A in 2004 and moved to Country A for a permanent professional-sports job in January 2008. Although he obtained a Virginia driver's license, registered …
Could a retired service member claim Virginia's military-spouse income-tax protection without sharing the active-duty spouse's out-of-state domicile?
No. The Servicemembers Civil Relief Act protection required the spouse claiming exemption and the active-duty service member to share the same domicile. The claimant showed intent to adopt another sta…
Did Virginia finally uphold a 2008 residency assessment when a former service member claimed another domicile but supplied no supporting evidence?
Not finally. The taxpayer had not answered two Department requests or provided objective evidence supporting his claimed out-of-state domicile, so Virginia had no basis to revise the presumptively cor…
Did Virginia finally uphold a 2008 residency assessment against a student who lived in two other states but kept a Virginia driver's license?
Not finally. The student said she lived and attended college in two other states and paid tax there, but provided no supporting records despite two information requests. Her Virginia driver's license,…
Did evidence that eliminated a 2008 Virginia residency assessment also prove the taxpayer was not domiciled in Virginia during 2007?
No. Virginia had already abated the 2008 assessment based on additional evidence, but the 2007 record was different: the employer attributed all wages and withholding to Virginia, federal tax document…
Did living abroad, holding a foreign license, and paying foreign tax prove that a taxpayer abandoned Virginia domicile for 2008?
No. The taxpayer showed a residence, driver's license, vehicle, and tax return in another country, but did not provide requested voting records or a usable federal transcript. She also maintained a pe…
Did new evidence about an out-of-state home and Virginia mailing arrangements prove that a taxpayer abandoned Virginia domicile for 2007?
No. On reconsideration, Virginia again found that the taxpayer had not abandoned her Virginia domicile. She kept and renewed a Virginia driver's license, registered vehicles in Virginia, was construct…
Did a military spouse qualify for Virginia income tax protection when she obtained a Virginia driver's license and established domicile in Virginia?
No. The military-spouse protection required the spouse and service member to share the same out-of-state domicile. Virginia found that the spouse acquired Virginia domicile in 2007 after establishing …
Did an out-of-state part-year return change Virginia's finding that a taxpayer became domiciled in Virginia in May 2007?
No. The other state's part-year return confirmed that the taxpayer left that state in April 2007 but did not show where she established domicile afterward. Virginia retained its finding that she becam…
Could retired U.S. citizens abandon Virginia domicile by moving permanently to a foreign country?
Yes. U.S. citizenship did not prevent the couple from abandoning Virginia domicile and establishing domicile in a foreign country. Virginia found that the wife changed domicile when she moved there in…
Did a military spouse have to marry or live with the servicemember in their domicile state to receive Virginia's 2009 spouse exemption?
No. The marriage location and the fact that the couple had not lived together in their domicile state did not control. The spouse proved she shared and maintained the servicemember's State A domicile …
Could a military spouse claim the servicemember's State A domicile when her own records showed State B domicile?
No. The spouse's State B home, homestead exemption, vehicle registrations, and prior federal and Virginia filings showed that she established State B domicile before the marriage. She did not prove St…
Were missionaries domiciled abroad Virginia residents for 2007 because they kept Virginia ties?
No. Considering all the evidence, Virginia found the couple had established domicile in the foreign country in 1993 and had not abandoned it, despite a Virginia house, family address, voter registrati…
Were out-of-state domiciliaries who stayed in their Virginia home more than 183 days for medical reasons Virginia residents?
Yes, for the part of each year they lived in Virginia. Their medical reason and lack of intent to restore Virginia domicile did not prevent actual residency after they maintained a Virginia abode and …
Did an out-of-state return and voter registration overcome evidence from a Virginia driver's license and vehicle registrations?
No. The out-of-state resident return and voter card supported domicile elsewhere, but the taxpayer obtained a Virginia driver's license in March 2007, renewed it in 2010, and kept two vehicles and a t…
Was a worker living in Virginia over 183 days a resident, and could she deduct Virginia housing as temporary-job lodging?
Virginia treated her as an actual resident because she maintained a Virginia abode for more than 183 days, even if her domicile remained elsewhere. Housing was not deductible as temporary-job lodging …
Did a Virginia-domiciled travel nurse owe Virginia tax on wages earned in other states?
Yes. She admitted that she had not changed her Virginia residency, so Virginia taxed her as a resident on federal adjusted gross income even though she lived and worked elsewhere. She qualified for Vi…
Did a military spouse qualify for a Virginia withholding refund when she and the service member did not share the same domicile?
No. The spouse appeared to retain domicile in State A, but the service member had never been physically present there and therefore could not acquire State A domicile despite vehicle registration, vot…
Did a husband become domiciled in Virginia because he spent substantial time there caring for his ill wife?
No. He kept an out-of-state driver's license, vehicles, voting, residence, and federal-return address, while his extended Virginia stays were tied to his wife's medical treatment. Although he maintain…
Did attending college, working part time, and filing a resident return in another state end a student's Virginia domicile?
No. The student attended college, worked part time, received statements, and filed a resident return in the other state, but excluded investment income from that return in a way that raised doubt abou…
Did employment and utility bills in another state prove domicile there while the taxpayer kept Virginia licenses, vehicles, and a home under construction?
No. Employment and utility bills supported presence in the other state, but the address had been reported as rental property, no 2007 federal return established a permanent abode there, and the Virgin…
Could a military spouse claim the 2009 Virginia exemption when both spouses had established Virginia domicile before moving back to another state?
No. Both spouses had established Virginia domicile through their condominium, licenses, voter registrations, and vehicle ties, and no evidence showed another domicile before December 2009. The refund …
Did buying a home and spending most of the year abroad establish a new domicile when the taxpayers kept extensive Virginia business and personal ties?
No. Although the taxpayers bought a foreign home and spent most of 2007 and 2008 there, they returned for long periods to run Virginia businesses, renewed Virginia licenses, kept registered vehicles, …
Could a military spouse claim Virginia's 2009 exemption after obtaining Virginia licenses, vehicle registration, and voter registration?
No. Virginia found that by 2008 she had abandoned relevant connections with the service member's home state and established Virginia domicile through her license, vehicle, voter registration, residenc…
Did a taxpayer establish domicile abroad with her transferred spouse when she kept a Virginia home and commuted to an adjacent-state employer?
No. Although she sold the prior home and traveled abroad with her spouse, she owned and used a Virginia home, registered a vehicle, renewed her Virginia license, and spent more days in Virginia than a…
Did the Servicemembers Civil Relief Act exempt a military spouse who had established her own Virginia domicile?
No. Virginia denied the refund because the spouse's conduct showed that she had abandoned her prior-state domicile and established a separate Virginia domicile. Her Virginia voter registration, Virgin…
Did attending college, voting, paying in-state tuition, and interning in another state end a student's Virginia domicile?
No. Virginia found that the student had not clearly abandoned his Virginia domicile. His out-of-state tuition status, voting, internship, and part-year return supported a change, but college housing a…
Did a military spouse preserve her out-of-state domicile and qualify for a refund of 2009 Virginia wage withholding?
Yes. Although the spouse moved to Virginia and began working before her marriage, Virginia found that the full facts showed she maintained State A domicile, shared that domicile with her service-membe…
Will Virginia cancel a resident income-tax assessment when the taxpayer does not provide the requested domicile evidence?
Not without evidence. Because the taxpayer did not provide the domicile information requested during the audit or appeal, Virginia found no basis to adjust the 2007 assessment. The Commissioner allowe…
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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.