Do I Need to File a DC Nonresident Tax Return for a Refund?

If you worked in Washington, D.C., but live in another state, you might be wondering whether you need to file a nonresident tax return—especially if you’re expecting a refund. Tax laws vary depending on where your income is earned and where you reside, making it important to understand your obligations.

Filing a DC nonresident tax return is sometimes necessary to claim a refund of taxes withheld from your paycheck. However, not everyone who earns money in DC needs to file. Understanding nonresident status, income allocation, and filing requirements will help determine if submitting a return is required to get your money back.

Determining Nonresident Status

Washington, D.C. does not tax nonresidents, meaning individuals who live outside the District but earn wages there are generally not required to pay DC income tax. Residency for tax purposes is based on domicile—the place you consider your permanent home. If you live in Maryland or Virginia but commute to work in DC, your domicile remains in your home state, making you a nonresident for DC tax purposes.

Even if you rent an apartment in DC for convenience, you are still considered a nonresident as long as your primary residence is elsewhere. However, actions such as registering to vote in DC, obtaining a DC driver’s license, or filing DC taxes in prior years could indicate residency and may require clarification.

Unlike some states, DC does not have a statutory day-count rule to determine residency. However, maintaining a residence in the District for an extended period while working there could raise questions about whether you have established residency.

Income Allocation for DC

Since DC does not tax nonresidents, wages earned in the District should not be subject to DC income tax withholding. However, payroll systems sometimes assign tax withholding based on the employer’s location rather than the employee’s residency, leading to incorrect withholdings. If your employer mistakenly withholds DC taxes, filing a return is the only way to recover those funds.

To confirm whether DC taxes were withheld, review your pay stubs and W-2. Box 17 of the W-2 shows state income tax withheld, and if DC is listed, you may be eligible for a refund. Employers are not required to correct withholding errors, so employees must take action themselves.

If you need to file for a refund, you may have to provide documentation, such as pay stubs or a W-2, to support your claim. The DC Office of Tax and Revenue (OTR) may also request proof of residency, such as a state tax return or driver’s license, to verify nonresident status.

Filing Requirements and Forms

Filing a nonresident return in Washington, D.C. is only necessary to recover taxes that were mistakenly withheld. The correct form for this is DC Form D-40B, the Nonresident Request for Refund. Unlike a standard tax return, Form D-40B does not calculate taxable income but instead serves as a refund claim for incorrect withholdings.

The form requires wage and withholding details that match the amounts reported on your W-2. A copy of your W-2 must be attached to substantiate the claim. If multiple employers withheld DC taxes, each W-2 must be included.

Common mistakes that delay processing include failing to sign the form, misreporting withholding amounts, or neglecting to attach required documentation. Ensuring accuracy before submission helps prevent delays in receiving your refund.

Requesting a Refund

Submitting a refund request requires careful attention to documentation. The DC Office of Tax and Revenue reviews refund claims based on submitted evidence, meaning any inconsistencies or missing information can lead to delays or denials.

To strengthen your claim, include supporting documents such as a driver’s license, voter registration, a lease or mortgage statement from your home state, and a copy of your resident state tax return if applicable.

Form D-40B must be submitted by mail, as electronic filing is not available. Refunds typically take six to eight weeks if the submission is complete and accurate. If additional verification is required, OTR may send a notice requesting further proof, which could extend the timeline. Taxpayers can track the status of their refund through the OTR’s online portal or by contacting customer service.

Filing Deadlines and Extensions

The deadline for filing Form D-40B aligns with the general tax filing deadline, typically April 15. If this date falls on a weekend or holiday, the deadline shifts to the next business day. Missing this deadline could result in forfeiting the right to claim a refund, as DC tax law imposes a statute of limitations on refund requests. Taxpayers generally have three years from the original due date of the return or two years from the date the tax was paid, whichever is later, to file for a refund.

DC grants automatic six-month extensions for filing a regular tax return, but this does not apply to refund claims on Form D-40B. Since nonresidents have no DC tax liability, there is no requirement to file an extension request. However, waiting too long to submit the refund claim could lead to complications, especially if supporting documentation becomes harder to obtain. Submitting the request as early as possible helps avoid unnecessary delays.