Hi,

I have following questions.

1. I am working in Virginia and my employer is other state in USA. My employer runs the payroll from out of Virginia so they said we cannot deduct your Virginia State Tax from here. I have to fill my applicable Virginia State Tax with my income tax return. So currently in my salary slip as well in w2 Form there is no any deduction is mentioned related to State Tax. Now I want file my income tax return for last year (2007). So how can pay my Virginia State Tax with this year income tax return?
2. For current year 2008, Is it fine if I will Pay my VA State Tax at the end of year? And How?

Kindly let me know your feedback about the same.

Thanks.

1. When you complete the 2007 VA income tax form you will find that you owe a fair amount of money to them, since your employer did not deduct anything from your pay for VA in 2007. You will have to write a check to cover your entire 2007 tax bill and submit it to the state of VA with your tax return by April 15. The instructions that come with the VA tax packet should cover how to do that.

2. As you continue to live and work in VA into 2008 you should file estimated tax forms with VA each quarter in order to avoid possibly being penalized for under-payment when you do your taxes next year. You make 4 payments in April, June, September, and January 2009, each with 1/4 of your estimated full year 2008 VA taxes. Here is the form you need to use:

http://www.tax.virginia.gov/taxforms/Individual/Income%20Tax/2008/760ES.pdf

1. When you complete the 2007 VA income tax form you will find that you owe a fair amount of money to them, since your employer did not deduct anything from your pay for VA in 2007. You will have to write a check to cover your entire 2007 tax bill and submit it to the state of VA with your tax return by April 15. The instructions that come with the VA tax packet should cover how to do that.

2. As you continue to live and work in VA into 2008 you should file estimated tax forms with VA each quarter in order to avoid possibly being penalized for under-payment when you do your taxes next year. You make 4 payments in April, June, September, and January 2009, each with 1/4 of your estimated full year 2008 VA taxes. Here is the form you need to use:

http://www.tax.virginia.gov/taxforms/Individual/Income%20Tax/2008/760ES.pdf

Hi Thanks a lot.

So for the current year I have to pay some penalty because I am going to file my Virginia State Tax at the end of year? I haven't owe fair amount from State Tax because I moved in Virginia at the end of year.

For the Current Year 2008, if I will pay my Virginia State Tax altogether (for 12 months) before April 15 2009. Will it be fine ? Or I have to Estimate my tax for the year and submit the tax by every quoter.

Thanks...

You may have a nice loop hole here - the rules say to avoid the penalty you must pay at least as much tax on time in 2008 as you owed for 2007 - so if your VA tax bill for 2007 is $0, you would presumably not be penalized for underpayment in 2008. This is spelled out in the link I gave you. So you could wait to pay your 2008 tax bill until April 2009, presumably without any penalty. However, one advantage of paying the estimated taxes quarterly is that the bite is much less for each check - you don't want to get to next April and find that you don't have enough money in the bank to pay the tax man.

You may have a nice loop hole here - the rules say to avoid the penalty you must pay at least as much tax on time in 2008 as you owed for 2007 - so if your VA tax bill for 2007 is $0, you would presumably not be penalized for underpayment in 2008. This is spelled out in the link I gave you. So you could wait to pay your 2008 tax bill until April 2009, presumably without any penalty. However, one advantage of paying the estimated taxes quarterly is that the bite is much less for each check - you don't want to get to next April and find that you don't have enough money in the bank to pay the tax man.


Hi,

I called Virginia Tax Department, they are saying I have to send my state tax to there give address. With the check which form I have to send to them and by which name I have to issue the check.

Thanks,