Tax Type
Individual Income Tax
Description
Wages, Nonresident Retirement Benefits
Topic
Withholding of Tax
Date Issued
04-29-1992
Superseded by 99-79
Re: Income Tax Withholding
Dear****:
This will reply to your letter of December 6, 1991, regarding withholding from certain post-employment payments.
Under Va. Code §§ 58.1-460 and 58.1-461, withholding is generally applicable to:
Notwithstanding the above statutes, withholding is not required for retirement benefits when paid to individuals who no longer are domiciliary or actual residents of Virginia, inasmuch as these benefits are not "income from Virginia sources' as defined in Va. Code Section 58.1-302. This statute generally limits the taxation of nonresidents only to income derived from property or a trade or business located in Virginia.
For example, individuals who worked in Virginia, but who are no longer domiciliary or actual residents of the state, are not required to pay Virginia tax on the following types of benefits:
W. H. Forst
Tax Commissioner
April 29, 1992
Re: Income Tax Withholding
Dear****:
This will reply to your letter of December 6, 1991, regarding withholding from certain post-employment payments.
Under Va. Code §§ 58.1-460 and 58.1-461, withholding is generally applicable to:
-
- wages as defined under Section 3401(a) of the Internal Revenue Code, as well as any other amounts from which federal income tax is withheld under the provisions of Sections 3402 and 3405 of the Internal Revenue Code . . .
Notwithstanding the above statutes, withholding is not required for retirement benefits when paid to individuals who no longer are domiciliary or actual residents of Virginia, inasmuch as these benefits are not "income from Virginia sources' as defined in Va. Code Section 58.1-302. This statute generally limits the taxation of nonresidents only to income derived from property or a trade or business located in Virginia.
For example, individuals who worked in Virginia, but who are no longer domiciliary or actual residents of the state, are not required to pay Virginia tax on the following types of benefits:
- Distributions from qualified or nonqualified pension and savings plans;
- Gains attributable to stock option awards; and
- Distributions from deferred incentive compensation plans.
W. H. Forst
Tax Commissioner
Related Documents
Rulings of the Tax Commissioner