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Virginia Administrative Code
Title 23. Taxation
Agency 10. Department Of Taxation
Chapter 110. Individual Income Tax
12/2/2020

23VAC10-110-40. Part-year residents.

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 § 58.1-322(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.

Historical Notes

Derived from VR630-2-303; adopted September 19, 1984; revised eff. January 1, 1985 with retroactive effect according to Va. Code § 58-48.6 (recodified as Section 58.1-203).

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