1. What is the meaning of statutory residency?
Statutory residency is the residency requirement imposed by DC law(s) for tax-filing purpose(s).
Section 47-1801.04(17) of the DC Official Code describes a statutory resident as any individual who maintains a place of abode within the District for an aggregate of 183 days or more during the taxable year, whether or not such individual is domiciled in the District.

An individual is a resident of the District if the individual is domiciled within the District at any time during the taxable year. DC Official Code, 2001 Ed. §47-1801.04(17).

2. Who is required to file?
Please see the provision(s) of § 47-1805.02(1) of the DC Official Code and § 47-1801.04(17).  

3. What financial instruments are not taxable for the purpose of filing individual income tax?
Section 47-1803.02(2) of the DC Official Code lists the items that shall be excluded from the computation of District gross income; among which are “… interest and dividend income on obligations or securities of the United States, or its agencies or instrumentalities, to the extent that this income is included in federal gross income.” D.C. Official Code, 2001 Ed. § 47-1803.02(2)(A).

Also, for the purpose of filing individual and fiduciary income taxes, municipal bonds interest are not taxable.

Please refer to the above-referenced Code section for a complete listing of all items excluded from gross income.

4. Why was my return adjusted?
The return could be adjusted due to numerous reasons.  The Office of Tax and Revenue (OTR) usually sends a notice of adjustment to taxpayers explaining why their return is being adjusted.

5. Why did I receive a tax assessment notice? 
The reasons why a particular taxpayer may receive an assessment notice vary, and are usually fact-specific to that taxpayer. You may have received an assessment notice due to an error in the computation of your tax liability to the District, or due to a missing document, under-reporting of income etc.  However, prior to receiving an assessment notice, a taxpayer would have received a notice/letter of proposed adjustment from OTR.

6. How do I correctly file a “married filing separately” return with the District after filing a joint federal return?
Usually, a married taxpayer is required to file a joint-return pursuant to the provision(s) of § 47-1805.01(e).  However, we recognize that there may be instances where a taxpayer may have to file as “married filing separately”.

In such a case, taxpayer may file “married filing separately” if the taxpayer is married or have a registered domestic partner and both spouses/partners had income. Taxpayer should include the spouse’s domestic partner’s name and social security number in the Personal Information section. Also, each spouse should report only that spouse’s income, exemptions, deductions and credits. Each spouse will report one-half of the income from any securities, bank accounts, real estate, etc. that are registered or titled in both names.

 A taxpayer must file using this status if –

• You and your spouse/registered domestic partner were part-year residents of the District during different periods of 2007.
• You were a District resident and your spouse/registered domestic partner was one of the following:
  - A member of the armed forces and not considered a District resident;
  - A member of the U.S. Congress or an employee on the personal staff of a member of Congress who is considered a resident of the member’s state of residency;
  -  An officer of the U.S. Executive Branch whose primary residence was not in the District, who is appointed by the President, confirmed by the U.S. Senate and serves at the pleasure of the President; or
  -  A justice of the U.S. Supreme Court whose primary residence was not in the District.

7. How is the 183 days residency rule applied to tax returns?
Every day that a taxpayer is in the District of Columbia and maintains a place of residency for an aggregate of 183 days or more, including days of temporary absence is counted towards the 183 days residency rule. However, if a taxpayer is not domiciled within the District and only lived in the District for less than 183 days during the taxable year, then the taxpayer must indicate on his her tax return in the “Filing Status” section.

Please see also the provision(s) of § 47-1805.02(1) of the D.C. Official Code (2001 Ed.).

 8. What is the District’s capital gains tax rate for individuals?
District individual tax rates are based on the income level of the taxpayer. Moreover, the capital gains tax rates would have been included in the calculation of the Adjusted Gross Income (AGI) on a taxpayer’s federal tax return.

9. Where is my tax refund?  How can I find out its status?
You may check on the status of your refund by visiting www.taxpayerservicecenter.com, or you may contact the Customer Service Center (CSC) at (202) 727-4829.

10 Question: Do I need to file a District tax return if my office is located in another state?
You will have to file a DC franchise tax return regardless of where your office is located, if your business “… is engaging in or carrying on of any trade, business, profession, vocation or calling, or commercial activity in the District of Columbia, including activities in the District that benefit an affiliated entity of the taxpayer, the performance of the functions of a public office and the leasing of real or personal property in the District of Columbia by any person whether or not the property is leased directly by such person or through an agent, and whether or not such person or agent performs any services in connection with the property; provided, however, that the term ‘trade or business” shall not include, for the purposes of this chapter, sales of tangible personal property whereby title to such property passes within or without the District, by a corporation or unincorporated business which does not physically have or maintain an office, warehouse, or other place of business in the District, and which has no officer, agent, or representative having an office or other place of business in the District, during the taxable year.  (DC Official Code, 2001 Ed. § 47-1801.04).

11. What are District’s income tax rates for senior citizens and are there any income tax deductions and exemptions for senior citizens?
The District’s income tax rates for its senior citizens are the same as those for other citizens of the District as enumerated under the provisions of §47-1806.03(7)(A) of the DC Official Code. However, some senior citizens may be entitled to other tax deductions, exemptions, and credits. Senior citizens 65 years or older are allowed additional exemption amount. Please refer to the provisions of § 47-1806.06, etc.

12. Does the District allow credit to a taxpayer for income tax paid to another state?
The District allows credit on income and fiduciary tax returns for taxes paid to other states on incomes taxed by the District. However, the amount of the credit may not be equal to the amount of the tax paid by the taxpayer to the other states. For an explanation of the computation of the credit, see the instructions on Form D-40.
 
13. Is design work for magazines and mailings done out of District for a District company in which no material comes into the District subject to sales or use tax? 
The transaction is not subject to District sales or use tax since the master copy does not come into the District, since both the printing and mailings are not done in the District.

14. How does a taxpayer obtain a copy of his/her tax return?
A taxpayer may obtain a copy of his/her tax return at the Office of Tax and Revenue’s (OTR) Customer Service Center (CSC) located at 941 North Capitol Street, NE, or contact the CSC by phone at (202) 727-4829 for instructions on how to obtain a copy.

15. Is a foreign corporation taxpayer out of California and which does not conduct business in the District, but is registered and has an agent in the District required to file DC’s form D-20 for Corporation Franchise Tax?
No, unless they conduct business within the District of Columbia. Please see the provisions of § 47-1801(04)(6)(A) of the DC Official Code.

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