TaxEngine - Basic Instructions for Preparing and Filing Virginia Tax Returns
In preparing the state tax return, most information will carry from the federal return. The income and withholding will carry to the state from entries on the W-2. Be sure the state information has been entered on the W-2 input screen. Other income items will carry from the federal input according to the state designated.
You must claim itemized deductions on your Virginia return if you claimed itemized deductions on your federal return.
If you have additional information to enter, click on the 'tax forms' button. Input for all the state forms is available.
Supplemental Schedule MD
When filing a Virginia resident return and a Maryland nonresident return, the state of Maryland requires that a Virginia Schedule MD be included with the return. Check the box to prepare the Schedule MD. The form will be automatically generated. If there are changes you wish to make to the data automatically carrying to the Schedule MD, click on the tax forms button and then select Virginia. The Schedule MD is the last item on the list of forms.
Filing Status
In most cases your filing status will be the same as the one you selected on your federal return. If one spouse is a resident ant the other is a nonresident, they may not file a joint Virginia return, even if they filed a joint federal return. The resident apouse files a separate return and uses the married filing separate status. The nonresident spouse who has Virginia source income to report will file a separate nonresident return. Tkhe spouses must compute their itemized deductions and allocate exemptions for dependents as if they had filed separate federal returns.
Part-Year Resident
You are considered a part-year resident of Virginia if, during 2007, you moved your permanent home into or out of Virginia. You must pay Virginia income tax on income you earned, received or accrued while living in Virginia.
TaxEngine will automatically allocate the income based on the information entered on the federal return. Be sure to enter the state information on the federal W-2 input form.
Nonresident
If you are a resident of another state and worked in Virginia during 2007, you are required to file a Virginia income tax return and are required to pay Virginia income tax on salary wages and other employee compensation for work performed in Virginia.
If you are a Virginia resident but worked in another state, all of your income is subject to tax, no matter where it is earned, except income earned from out-of-state business activity.