States tax you on the money you earn where you live and work. Residents are taxed on worldwide income. Non-residents are taxed on money earned while working in the non-resident state.
However, West Virginia and Ohio have reciprocity meaning your daughter’s employer should have withheld Ohio tax, not West Virginia tax. Reciprocity means both states agree not to tax the other state’s residents on W-2 income earned in the nonresident state. Instead, they withhold tax on the home state so the resident usually has to file one tax return.
Your daughter will have to file a non-resident West Virginia income tax return to get all her money back as well as a resident Ohio return. Since nothing was withheld for Ohio, she’ll owe.
Fortunately, West Virginia was a special return for just this situation so it’s just a few questions in the West Virginia section of TurboTax.
You can file both returns but wait until you receive your West Virginia refund before paying Ohio.
TurboTax CD/Download let’s you file five federal returns so you can use your TurboTax to file your daughter’s return. You’ll have to buy West Virginia (I’m assuming you used Ohio as your free state) and pay e-file fees. Mailing a return is free.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
