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The tax credit for your home state is not refundable. So if I make $100,000, my maximum tax rate for D.C. is 8.5% while my maximum tax rate in my home state of Virginia is 5.75%. This would mean that I wind up paying D.C. 8.5% and Virginia gives me credit up to what I would have owed them. So Virginia gets zero taxes from me and I have to pay 8.5% instead of 5.75%. So yes David, people who commute pay extra money.

by Notsofast on Jul 28, 2012 2:47 pm • link • report

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