Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 110 - INDIVIDUAL INCOME TAX › Section 23VAC10-110-40 - Part-year residents

Current through Register Vol. 40, No. 24, July 15, 2024
A. Any
				individual who becomes a domiciliary or actual resident of Virginia during the
				taxable year or who, before the last day of the taxable year abandons his
				Virginia domicile, shall be taxed as a resident only for that portion of the
				taxable year during which he is a resident of Virginia.
B. The Virginia taxable income of a part-year
				resident shall be computed by determining income, deductions, subtractions,
				additions and modifications attributable to the period of residence in
				Virginia. Income attributable to Virginia is that which is received during the
				portion of the year in which the individual is a Virginia resident; itemized
				deductions attributable to Virginia are those for which payment was made during
				the period of residence in Virginia. The allowable standard deduction of a
				part-year resident is prorated based on that portion of federal adjusted gross
				income (FAGI) attributable to Virginia as compared with FAGI. If a taxpayer
				claims moving expenses for federal income tax purposes, he should attribute the
				expense to Virginia income if the expense is incurred in moving into Virginia.
				If the expense is incurred in moving out of Virginia, such expense is
				attributable to the state into which the taxpayer moves. The exemptions
				allowable to a part-year resident under § 58.1-322D(D)(2) of the Code of
				Virginia (personal exemption and additional exemption for taxpayers age 65 and
				over) must be prorated by multiplying the amount of exemption by the ratio of
				days of residence in Virginia to 365 days unless the total FAGI of a part-year
				resident is attributable to Virginia, in which case, the individual may claim
				the allowable personal exemptions without any proration based upon days of
				residence. The following examples illustrate the computation of the Virginia
				taxable income of a part-year resident.
Example 1: Taxpayer A, a single individual with one
				  dependent, resided in Virginia for 200 days during taxable year 1982. A's FAGI
				  for the taxable year is $20,000 consisting of $10,000 in wages earned in
				  Virginia during his period of residence, $500 in taxable interest from a
				  savings account held while a Virginia resident and $10,000 in wages earned in
				  State X while a resident there. A claims $4,000 of itemized deductions, $2,000
				  of which were paid while a Virginia resident. A incurs $500 in expenses in
				  moving to State X which he deducts in the computation of FAGI. A's Virginia
				  taxable income is computed as follows:
Income attributable to residence in Virginia
$10,500
Salary
10,000
Interest
500
Less: Itemized deductions attributable to
						  residence in Virginia
(2,000)
Less: Personal exemption
(2 exemptions =)
$1,200 x
200
(days of residence in Virginia)
(657)
(2,657)
365
Income subject to Virginia tax
$7,843
(For transitional modifications affecting the computation of
				  Virginia taxable income, see
				  23VAC10-110-110.)
Example 2: Taxpayer B, a single individual with no
				  dependents, resided in Virginia for 190 days during taxable year 1983. B's FAGI
				  is $20,000 including $4,900 in wages earned in Virginia during B's period of
				  residence, $100 in taxable interest from a savings account held while a
				  Virginia resident, and $15,000 in wages earned in State Y while a resident
				  there. B does not itemize deductions, and therefore utilizes the Virginia
				  standard deduction. B's Virginia taxable income is computed as follows:
Income attributable to residence in Virginia
$5,000
Salary
4,900
Interest
100
Less: Standard deduction
(20,000 x 15% = 3,000 therefore maximum
						  standard deduction of $2,000 is used)
2,000 x
5,000
= 500
(500)
20,000
Less: Personal exemption
600 x
190
(days of residence in Virginia)
(312.60)
365
Income subject to Virginia tax
$4,187.40
C.
				No person who becomes a resident of Virginia during the taxable year is
				entitled to any credit against his Virginia tax liability for any tax payable
				to the state or jurisdiction of former residence or domicile for that portion
				of the taxable year during which he was a resident of such other state or
				jurisdiction.
For credit for taxes paid to another state, see
				  23VAC10-110-220.
D. Any part-year resident who derives income
				from property owned or business, trade, profession or occupation carried on in
				Virginia during that portion of the taxable year in which he was a resident of
				another state or jurisdiction shall be taxed as a nonresident with respect to
				such income.
Statutory Authority
§§ 58.1-203 and 58.1-303 of the Code of Virginia.