DISTRICT OF COLUMBIA (WASHINGTON, D.C.)
separate property state

 

Military Income:  Fully taxable.

Military Spouse Residency Relief Act Service memberís legal residence for taxes is not in DC but the service member and spouse reside in DC due to military orders the military compensation and the non-military spouseís compensation should be deducted on Schedule I, Line 15. Copy of the Department of Defense form providing the service memberís legal residence for taxes and a copy of the non-military spouseís legal residence for taxes driverís license should be kept with your tax records.

Forms Used:            

Filing Status:  Military member and spouse can file joint or combined separate return.  (If both spouses have DC income, filing separate might be better.) BUT if the spouse has D.C. income and the military member is not a domicile of D.C., the spouse MUST file a separate return. 

Attach Copy of Federal Return:  No

Not Taxed:

Other State Tax Credit:  Available.  Calculate and attach other state return.  

 

Where to Mail:
Office of Tax and Revenue
Benjamin Franklin Station
P O Box 7861
Washington, D.C.  20044-7861
 
Other Info: Forms:  (202) 727-6104
Office of Tax and Revenue
941 North Capitol Street, N.E.
Washington, D.C. 20002
202-727-4829
General Information:  (202) 727-4829
Electronic Filing:  (202) 442-6461
Website:  http://otr.cfo.dc.gov
E-filing Info:   Retain DC 8453 for 3 years.  The following CANNOT be filed electronically:
  • Nonresident returns/Part-year resident returns

    Married Filing Separate returnss

  • D-40B

  • Returns claiming Disability Income Exclusion on D-2440

  • Returns claiming other state tax credit

  • Returns claiming Property Tax Credit on Sch H

  • Returns claiming DC Low Income Credit

  • Returns with an entry for contributions on line 28

  • Returns claiming more than 6 dependents

Tax Form Instructions:
Resident Instructions Non-Resident Instructions

 

Filing Status Scenarios

1.  Taxpayer and Spouse Residents (Use also for Single Taxpayer)
2.  Taxpayer and Spouse Different States of Residence
3.  Taxpayer and Spouse Non-Residents
4.  Taxpayer Non-Resident - Spouse Part-Year Resident
5.  Taxpayer Married or Single - Resident but Income from Other State
6.  Amended Return

 

1.  Taxpayer and Spouse Residents (Use also for Single Taxpayer) - Taxpayer and spouse are both District of Columbia residents, lived at their present location all year, and one or both had income.

Main Info Screen.  Military members and their spouse can file joint or combined separate return.  (If both spouses have DC income, filing separate might be better.)

 

District of Columbia D-40 Form.  A joint resident District of Columbia income tax return is prepared.

 

Complete all other fields and forms with red or required information.

2.  Taxpayer and Spouse - Different States of Residence - Taxpayer or spouse is a resident of the District of Columbia, while the other member is a resident of a different state.  A District of Columbia income tax return must be prepared due to the taxpayer or spouse having District of Columbia earned income.

Main Info Screen.  If married and one spouse is not a resident of the District of Columbia, a separate return can be filed.  For this example, the taxpayer is a resident of the District of Columbia while the spouse is a resident of North Dakota. Married filing separately must be used if the nonresident is a member of the armed forces.

 

Resident/Nonresident Worksheet.  Review form to ensure income is split correctly for the appropriate states.

 

District of Columbia D-40 Form.   A married filing separately resident District of Columbia income tax return should be prepared.  You must check the box for the Taxpayer to generate a married filing separate return. 

 

Review the remainder of the District of Columbia D-40 Form.  Complete all other fields and forms with red or required information.

3.  Taxpayer and Spouse Non-Residents - Taxpayer and spouse are residents of a different state.  The spouse and taxpayer must file a District of Columbia tax return due to one or both having District of Columbia earned income.

Main Info Screen.  If both members are residents of another state, the parties should file as nonresidents.  For this example, the taxpayer and spouse are both residents of Alabama but must file a District of Columbia income tax return because the spouse worked in District of Columbia.

Resident/Nonresident Worksheet.  Review form to ensure income is split correctly for the appropriate states.

 

District of Columbia D-40B Form.   A DC Nonresident Request for Refund should be prepared.  You must complete the information as appropriate.

District of Columbia D-40B Form Page 1. Complete the Residence Information as in the example.

 

Complete all other fields and forms with red or required information.

4.  Taxpayer Non-Resident - Spouse Part-Year Resident - Taxpayer and spouse moved to or from District of Columbia during the tax year.  The taxpayer is a resident of a different state.  The Spouse is a part-year resident of District of Columbia.  The Spouse and taxpayer must file a District of Columbia tax return due to one or both of them having District of Columbia earned income and possibly income from another state.

Main Info Screen.  For this example, the taxpayer is in the military and a resident of Indiana.  The taxpayer and spouse moved from District of Columbia to North Dakota during the year.  The spouse was a resident of District of Columbia but is now changing their residency to North Dakota for tax purposes.  The spouse therefore was a part-year resident of both District of Columbia and North Dakota and must file a District of Columbia income tax return because the spouse worked in District of Columbia.

 

Part Year Resident States Worksheet.  Review form to ensure income is split correctly for the appropriate states.

 

District of Columbia D-40 Form.   A married filing separately part-year resident District of Columbia income tax return should be prepared.  You must check the box for the Spouse to generate a married filing separate return.  Enter the number of months of residency.

 

Review the remainder of the District of Columbia D-40 Form.  Complete all other fields and forms with red or required information.

5.  Married or Single Military Resident of District of Columbia with Income from Another State  - Taxpayer is single.  The taxpayer must file a District of Columbia tax return due to him or her having District of Columbia earned income.

Main Info Screen.  For this example the taxpayer is a military member stationed in North Dakota but a resident of District of Columbia.  The taxpayer had a job in North Dakota therefore having North Dakota earned income.

 

Resident/Nonresident Worksheet.  Review form to ensure income is split correctly for the appropriate states.

 

District of Columbia 104 Form.  A resident District of Columbia income tax return is prepared.  District of Columbia taxes residents on income from all sources, even income earned while living in another state (North Dakota as in this example).  

District of Columbia D-40 Worksheet 2, DC Out of State Tax Credit.  District of Columbia D-40 Worksheet 2 must be added to the tax return.  Worksheet 2 must be prepared to give a credit for taxes paid to another state (North Dakota). You must complete the other states tax return first, then enter the amount of tax from the other states tax return.  This is not the amount the taxpayer had withheld from his or her pay but the amount of tax imposed on them.  Line A is the amount of income tax liability on the (North Dakota) tax return.  Line B Is the amount of income earned in the other state (North Dakota).  A copy of the other state's return must be attached to the District of Columbia return if not e-filed.

 

Complete all other fields and forms with red or required information.

6.  Amended Return  - An amended District of Columbia return must be filed because the taxpayer received new tax information after their District of Columbia return was filed.
Federal 1040X Form.  Before making any changes to the tax return add the US 1040X form to the tax return.  You must check the box under Income and Deductions to lock in the entries in Column A - Original amount or as previously adjusted.

District of Columbia D-40 - District of Columbia Individual Income Tax.  The same District of Columbia D-40 Form that was used to file the return is used to amend the return.  Answer the questions as in the example, before making any changes to the return.

Make whatever changes are required to the federal tax return.  For this example, a new W-2 was received.

District of Columbia D-40 - District of Columbia Individual Income Tax.  Return to the District of Columbia D-40 Form to determine if the taxpayer is receiving an additional refund or owes money.

Amended returns can not be e-filed.  The taxpayer must mail the federal 1040X and any state amended returns if required to be filed.