I lived in Virginia part of the year - Do I have to pay VA income tax on severance received after I left?
The technical answer is yes. Your former employer should have reflected the amount of the severance payment that is subject to VA withholding tax. However, employers typically look to the resident of the recipient under these circumstances - completely erroneous. What should you do if no VA tax was withheld? Absolutely nothing. The state will take the position that the employer (not the recipient) had the fiduciary responsibility of withholding income tax and go after the employer for the liability.
you should discuss this with a tax accountant or attorney familiar with Virginia tax legislation. You probably won't have to pay VA taxes on anything you received after you left, but I'm not sure.
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