State Tax : nanny works in WDC but lives in VA

[Anonymous]

When calculating taxes for my nanny, do I use the tax rate for VA (where she resides) or DC (where she works)?
Thanks!

[Anonymous]

You need to use whatever tax rate is used in the area where she works, not where she lives. Make sure to use any city tax that may be applicable for the city where she works.

[Anonymous]

thanks!

[webbkathy]

Unemployment tax is paid where the work is performed. Income taxes are paid where the worker lives.

MD, DC and VA all have reciprocity.

[Anonymous]

I thought I had to pay income taxes for her in VA - that is how I filed last year anyway. Thank you for your help everyone!

[Anonymous]

She lives in VA - that is where income taxes are calculate and paid.

Unemployment taxes are paid where you live/where she works.