You said you lived in Georgia, but you didn't say where you worked. What state did you work in in 2021? If you worked in Virginia, your employer was correct to withhold Virginia tax, and you filed your state tax returns incorrectly. Any money that you earned for working in Virginia is subject to Virginia tax. Since you live in Georgia, all of your income is subject to Georgia tax, no matter where the income is from. You have to file a Virginia nonresident tax return and a Georgia resident tax return. On your Georgia resident tax return you get a credit for part or all of the tax that you pay to Virginia. You end up paying most of your tax to Virginia, and only a small amount to Georgia.
