Do I Have to Pay DC Income Tax If I Live in Another State?

DC Income Tax Information

Congress passed a law in 2015 that forbids double taxation. You won’t be taxed twice on the same money. DC residents pay the highest per-capita federal income taxes in the US. In total, DC residents pay more in federal income tax than residents of 22 other states. Any person who lived in DC for 183 days must file a DC tax return. The DC income tax has six brackets, with rates from 4% to 8.95%. As of 2019, there are six DC income tax brackets ranging from 4% to 8.95%.
Do you have to file a DC tax return?
If you work in DC but live in another state, you don’t owe DC income tax.

State Income Tax Information

Washington DC Income Tax Rates
Of the three states, Washington DC has the highest income taxes. As of 2019, there are six brackets ranging from 4% to 8.95%.

DC Residency and Tax Obligations

What makes you a DC resident? Living in DC for over half the year or being domiciled there at any point. Part years over 183 days also count.
Who must pay DC income tax? You must file a DC tax return if you were a resident of DC or lived there for over half the year. Even people required to file federal returns must also submit a DC one.

Tax Filing and Refunds

Mailing addresses:

  • Refund or no payment return: PO Box 96145
  • Other returns: PO Box 96169
    Deductible expenses can lower taxable income. DC has high rates for income tax returns. All earners file returns based on income. You can file individually or jointly. Despite high rates, DC salaries are also considerably higher than other cities. So understand the rates and cost of living when considering a move.

Other State Tax Considerations

Individuals who earned money in one state but live in another must file a nonresident state return. You will file a nonresident return where you worked, listing only that income. You’ll also file a resident return where you live, listing all income. Your state will likely give you a tax credit for taxes paid elsewhere. States have different rates, so this credit may not equal taxes paid elsewhere. Under military law, service members don’t become state residents due to orders.

Conclusion

Higher incomes mean higher tax rates. Single filers in Maryland pay 4.75% over $100k, 5.75% in Virginia, and 8.5% in DC.

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