Moved from Virginia to Alabama Mid-Year: Which State Tax Returns Do You File?
Answer
Both states want a return, but neither taxes the whole year. Moving from Virginia to Alabama splits the tax year at the date your residency changed: a Virginia part-year return covers everything before it, a Alabama part-year return everything after. Income is assigned by when it was received.
Last verified
A mid-year move splits the tax year in two, and each state taxes its own half. That is a residency question, so the machinery that governs commuters — reciprocity agreements, convenience rules, nonresident withholding — is beside the point here.
What you file
- 1Part-year return · VirginiaForm 760PY
File a Virginia part-year return covering the months you lived in Virginia. A part-year resident of Virginia reports the income received while a Virginia resident, plus any Virginia-source income received during the rest of the year, and prorates the deductions and credits to the residency period.
- 2Part-year return · AlabamaForm 40 (part-year resident)
File a Alabama part-year return covering the months you lived in Alabama. A part-year resident of Alabama reports the income received while a Alabama resident, plus any Alabama-source income received during the rest of the year, and prorates the deductions and credits to the residency period.
The two states, side by side
| Virginia | Alabama | |
|---|---|---|
| Taxes wages | Yes — graduated | Yes — graduated |
| Reciprocity partners | 5 (Form VA-4) | None |
| Convenience rule | No | No |
| Nonresident return | Form 763 | Form 40NR |
| Part-year return | Form 760PY | Form 40 (part-year resident) |
| Credit for other-state tax | Schedule OSC | Schedule CR |
| Nonresident safe harbour | None published | None published |
| Local income tax | No | Yes |
| Revenue department | Virginia Department of Taxation | Alabama Department of Revenue |
| Last verified |
The other direction
Reversing the commute does not always reverse the answer. Living in Alabama and working in Virginia gives:Two part-year returns.
Same two states, different situation
The withholding answer turns on how you are paid and where the work happens, not only on which two states are involved.
- W-2 commuter: Virginia → AlabamaBoth states — credit offsets the double tax
- Remote worker: Virginia → AlabamaHome state only
- 1099 contractor: Virginia → AlabamaHome state, plus the client state if you work there
Other Virginia pairs
Questions people actually ask
I moved from Virginia to Alabama mid-year. Do I have to file in both states?
Both states want a return, but neither taxes the whole year. Moving from Virginia to Alabama splits the tax year at the date your residency changed: a Virginia part-year return covers everything before it, a Alabama part-year return everything after. Income is assigned by when it was received.
How do I split my income between Virginia and Alabama?
By when you received it, measured against the date your domicile actually changed. Income received while you were a Virginia resident belongs on the Virginia return and income received afterwards on the Alabama return, with each state prorating your deductions, exemptions and credits to its own part of the year. Keep evidence of the move date — a lease, a closing statement, a licence issue date.
How current is this?
The Virginia and Alabama rules on this page were last checked against Virginia Department of Taxation and Alabama Department of Revenue on 2026-08-07. We re-check the full grid every December after state legislative sessions close, and re-check the convenience-of-the-employer states quarterly because that is where the rules move fastest.
Sources
Every fact above comes from the revenue department that publishes the rule. We do not cite secondary summaries, and we do not restate a figure we could not find at source.
- Virginia Department of Taxation — individual income taxaccessed 2026-08-07
- Virginia — Form VA-4accessed 2026-08-07
- Virginia Tax — Reciprocityaccessed 2026-08-07
- Alabama Department of Revenue — individual income taxaccessed 2026-08-07