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View Full Version : Commuting to Virginia from Texas - tax implications


puckoon
Sep 11, 2012, 07:16 AM
I currently live in Maryland and commute to Virginia, I pay Maryland State Tax. For family reasons we are moving to Texas and are in the process of selling our house in Maryland and buying a new home in Texas. My Company has a Texas office close by to where our new home will be. However they are unwilling to allow me to work from that office and so I am considering commuting on a weekly basis to Virginia. This will involve air fare and hotel bills which I estimate to be $3,000 per month. Obviously this is not a sustainable model but I am close to retirement (3.5 years) so I may just stick with it.

When I move I will not have a permanent address in Virginia or surrounding areas, other than the hotel. What tax problems will this create for me? Can I avoid paying Virginia taxes? Can I deduct the travel expenses?

AtlantaTaxExpert
Sep 11, 2012, 07:24 AM
Sorry, but you will have to pay Virginia taxes because the income was earned inside of the Virginia state borders.

You CANNOT deduct the travel costs, because they are considered to be commuting expenses, and commuting expenses are NEVER deductible.

smoothy
Sep 11, 2012, 07:52 AM
Not tax related (completely)... but if you have a car that is parked or garaged in the state of Virginia for more than 30 days... its required to be registered here... even if the owner doesn't reside in VA. And trust me... they are aggressive about it.

And there is a personal property tax involved. Though the registration costs are much lower than MD.

You have to live someplace... hotel or appt if you are working here, you aren't traveling every day to TX... and whereiver that would be is considered your primary residence, it won't be TX unless you fly back and forth every day...