The state of Virginia allows a special nonresident claim for taxes paid to the state by nonresidents in error, or under special circumstances. Both spouses must complete a separate Form 763-S when both filers have Virginia income tax withheld.
To qualify, a taxpayer must meet one of the 4 following conditions:
Commuter State Exemption: For the current tax year, the taxpayer commuted on a daily basis from their place of residence to work in Virginia. The taxpayer's only income from sources within Virginia was from wages and salaries, which are subject to taxation by the state of Kentucky or the District of Columbia. The taxpayer did not live in nor were they a domiciliary or legal resident of Virginia at any time.
Domiciliary State Exemption: For the current tax year, the taxpayer was a domiciliary or legal resident of Maryland, Pennsylvania or West Virginia. The taxpayer's only income from sources within Virginia was from wages and salaries, which are subject to taxation by one of the states listed. The taxpayer is not an actual resident of Virginia and did not maintain a place of abode in Virginia for a total of more than 183 days.
Military Spouse Exemption: Complete the second page of Form 763-S first to provide information regarding the taxpayer's/spouse's eligibility for this exemption. The taxpayer declares that, for the entire portion of the taxable year their spouse lived in Virginia, were present in the state solely to be with their servicemember spouse who was on active military duty and in Virginia pursuant to military orders. To be exempt, either (1) the spouse and servicemember spouse must have the same non-Virginia domiciliary or legal state of residency or (2) the spouse must elect to use the same residence for purposes of taxation as that of the servicemember spouse. If the taxpayers are claiming this exemption, the 2 letter state abbreviation for the domiciliary or legal state of residency of the servicemember spouse must be provided.
Tax Withheld in Error by Employer: The taxpayer declares that during the current tax year they were not a domiciliary or legal resident of Virginia at any time. The taxpayer did not perform any services in Virginia and the Virginia tax was erroneously withheld from salary and wages paid by the employer. The 2 letter state abbreviation for the taxpayer's domiciliary or legal state of residency must be entered.
To access Virginia Form 763-S, from the main menu of the Virginia Nonresident return, select:
- Miscellaneous Forms
- VA Special Nonresident Claim form (763-S)
- Select Begin
- Select from the dropdown menu, who the form is being filed for (if applicable): Taxpayer or Spouse
- Exemption Category - Select Begin - Complete the form as prompted.
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Note: The state of Virginia does not allow electronic filing of Form 763-S. The Form must be mailed by the due date, May 1st. The form and a copy of the resident state return (when required) should be mailed to:
Department of Taxation
P.O. Box 1498
Richmond, Virginia 23218-1498 - The Form can be viewed and printed from state return return menu by selecting the Printer icon next to the state entry, or by printing the tax return in its entirety.
Additional Information:
Virginia State Tax Information
Virginia Tax Forms and Instructions