I received a OSC for DC a state that VA doesn't have reciprocity w/, then a refund for DC in 2022. VA now wants 3k plus interest cause system gave me credit & a refund

Forum|Forum|10 months ago
May 25, 2025
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DC was marked non resident. And VA has resident. Shouldn't the system have known not to give "credit " if was also processing a refund ?

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NCPERSON1

@karasue0316 not necessarily. The credit is a function of your tax liability, not your refund.

example: if the tax liability was $4000 and you had $6,000 withheld from your paycheck, then any credit would be based on the $4000, even though you received a refund of $2000.

what is on Line 24 of the VA tax return? trace that back to the DC return. All the calculations should be on form OSC as part of your original VA tax return.

Hal_Al

DC is reciprocal with all states, including VA. If you are a VA resident, who works in DC, you don't get a credit, on your VA return, for DC tax paid/withheld. Instead, you get a full refund from DC.