Federal Employee Tax Services for DC, Maryland & Virginia Government Workers

    The DC metro area has more than 350,000 federal government employees — and their tax situations are more complex than most. FERS vs. CSRS pension income, TSP withdrawal taxation, state tax treatment of federal pensions (dramatically different between Virginia, Maryland, and DC), GS pay and locality adjustments, and the intersection of federal employment with side income or consulting all require a CPA who understands the unique federal employee tax landscape. We serve GS employees, SES officials, and federal retirees throughout the National Capital Region.

    What's Included

    Federal employee personal tax preparation (W-2, 1099-R, FERS/CSRS pension income)
    TSP traditional vs. Roth contribution strategy
    TSP withdrawal and RMD planning for federal retirees
    FERS vs. CSRS pension income tax analysis
    State tax planning across VA, MD, and DC for federal pension income
    Federal employee side income and consulting tax planning (1099, freelance)
    Annual leave (lump sum) taxation planning at separation
    Federal Employees Health Benefits (FEHB) and FSA tax optimization
    FEGLI life insurance imputed income and tax treatment
    Separation incentive (VSIP/VERA) tax planning
    GS pay scale and locality adjustment tax planning
    OPM retirement estimate review and income verification

    Who This Is For

    Active GS Federal Employees

    You are employed at a federal agency (DOD, State, DHS, HHS, IRS, or any other) in the DC metro area and have a tax situation more complex than a simple W-2. Whether it is locality pay adjustments, TSP contribution optimization, or side income from consulting or a second job, we handle the full picture.

    Federal Employees Approaching Retirement

    The transition from active employment to federal retirement requires careful planning — you need to understand how FERS supplement taxation works, when to start TSP withdrawals, how to optimize your pension start date, and critically, which state you should retire in given very different state tax treatment of federal pensions.

    Federal Retirees Receiving FERS or CSRS Pensions

    Federal pension income is taxable at the federal level and varies dramatically by state. Virginia taxes FERS pensions (with a $12,000 subtraction for those 65+). Maryland exempts the first $15,000 of qualifying retirement income. DC exempts all government pension income from DC income tax. If you live near state borders, the right state of domicile can save $3,000–$10,000+ annually.

    SES Officials and Federal Executives

    Senior Executive Service officials and higher-grade federal employees often have more complex tax situations — significant TSP balances, performance bonuses, potential consulting income, or transition to private sector roles. We handle the full range of executive-level federal employee tax planning.

    Our Process

    1

    Federal Benefits Review

    We review your FERS/CSRS election, TSP account (traditional vs. Roth balance), FEHB plan, FEGLI coverage, and any leave balances to understand your full federal compensation package and its tax implications.

    2

    State Domicile Analysis

    For federal employees near the DC/MD/VA borders, choosing the right state of domicile at retirement can mean $3,000–$10,000+ in annual state tax savings on pension income. We model each state's tax treatment of FERS/CSRS, TSP, and Social Security income to identify the most advantageous option.

    3

    TSP Strategy Planning

    We analyze whether traditional (pre-tax) or Roth (after-tax) TSP contributions make more sense for your situation, model TSP withdrawal sequencing in retirement, and address RMD requirements when you turn 73. Your TSP balance is often your largest financial asset — it deserves careful tax planning.

    4

    Annual Tax Preparation and Year-Round Planning

    We prepare your complete federal and state return, ensuring all federal employee-specific forms (1099-R for pension, SSA-1099, W-2) are handled correctly. Year-round tax planning addresses estimated payments for side income, withholding adjustments, and upcoming major events (retirement, TSP withdrawals, lump-sum leave payment).

    Why Choose Your Virtual CPA

    Deep understanding of FERS, CSRS, TSP, FEHB, and the specific tax forms federal employees receive
    State tax optimization: we model VA vs. MD vs. DC residency for federal retirees where the choice can mean thousands per year
    Experience with separation incentive taxation (VSIP/VERA) and lump-sum leave payment planning
    TSP withdrawal strategy that minimizes lifetime tax burden — sequencing distributions optimally with Social Security and pension income
    We understand GS locality pay, performance awards, and the specific W-2 boxes that apply to federal employees
    Virtual services that work with federal employees' schedules — available evenings and weekends

    Frequently Asked Questions

    Serving the DMV and Beyond

    Available in Washington DC, Maryland, Virginia, and all 50 states.

    Ready to Get Started?

    Schedule a free consultation to discuss your federal employee tax services needs.