It is easy to be overwhelmed about all the taxes you pay. There are federal and state income taxes, a local sales tax, and maybe property taxes on your home and other real property, as well as on your personal vehicle.

Taxes for people and businesses in Alexandria are overseen by the Virginia Department of Taxation, which vows to serve the public efficiently and ethically. You could be served a penalty if you do not pay or are late in paying owed taxes. Our seasoned tax lawyers could help when problems arise. Call us and learn how an Alexandria state and local tax lawyer could work to resolve your dispute. We can address any state-level dispute in the same way we help with federal disputes, such as tax collections, audits and appeals, and releasing a levy.

Income Taxes Owed to the Department of Taxation

Along with federal income tax, Virginia residents pay a state income tax divided into brackets with rates varying depending on taxable income earned, which will be $720 plus 5.75% on income for those making more than $17,000. If residents fail to remit these taxes, they could be sanctioned.

Non-residents may have to pay state income tax, such as those who live elsewhere but attend a Virginia college and those who own local real estate and rent or sell it. Generally, the attachments to the state that prompt the need to pay income tax include:

  • Those who are part-time, full-time, or non-residents of the state and
  • Are required to file a federal tax return and
  • The VAGI (Virginia adjusted gross income) is more than $11,900 for single filers or those filing married but separately; or $23,900 for those filing jointly

The VAGI is a taxpayer’s federal adjusted gross income. Some circumstances could make taxpayers assume they do not owe state tax, including those who are non-residents or whose spouses do not live or work in the state. Generally, if any part of someone’s income is generated in the state, they will owe taxes. If a taxpayer has been notified that they owe back state income tax and are not sure what to do, they should contact an Alexandria state and local tax attorney to address the matter.

Three Types of Residents

Virginia residents are classified into one of three groups. The first is those who are physically present here and have a ‘place or abode’ they live in for more than 183 days a year, which do not have to be consecutive.

Part-time residents are those who are non-residents for part of the year, such as a person who moves to Alexandria partway through the year. They are required to pay tax on income generated in Virginia while a non-resident and on all income earned after becoming a resident.

Non-residents pay state taxes when the income they receive is generated in Virginia, such as from working in the state or owning a business or rental property. However, there are exceptions involving some nearby states.

Taxation Reciprocity

Residents of Alexandria may have some relief when it comes to taxation. Virginia has reciprocity with Washington D.C., West Virginia, Pennsylvania, Maryland, and Kentucky. Reciprocity means Virginia residents, whose presence is limited in those states and D.C., pay only Virginia taxes. If a resident of Alexandria has concerns that they are being wrongly taxed for working in D.C., a state and local tax lawyer could help them clarify their obligations.

Call an Alexandria State and Local Tax Attorney to Shed Light on Tax Issues

Paying State income tax is not part of your federal filing. If you did not file for whatever reason, you will have to rectify the error. For taxpayers with more than $40,000 at issue, it may require legal assistance.

Pontius Tax Law has years of experience working with the federal and state tax codes, so we know what the Department of Taxation is looking for and how you can provide it. If you have a tax issue, we most likely have solved it before. Talk to an Alexandria state and local tax lawyer to learn what steps need to be taken.