DanielV01
Expert Alumni

State tax filing

It depends.  PA and WV have a reciprocal agreement that you pay state taxes on your income only where you live and not where you work.  What is happening for you depends on what is shown on your W-2.

If box 15 on your return says WV (which would be correct), then your employer is withholding and sending state income tax to West Virginia.  If this is what you see, you will prepare and file a West Virginia return only.  Your tax was sent to West Virginia, and you will do nothing more.

If box 15 on your return says PA, and you see any amount in box 17 (state income taxes withheld), then you will need to file a PA return with zero income (screenshots below will give assistance on how to do this), so that your PA taxes are returned to you.  However, you will need to pay West Virginia with the refund you receive, as you are taxed on all of your income to West Virginia.  Pennsylvania will not automatically send your refund to West Virginia: they will send it to you, and you will have to send it to West Virginia.  

If this is your case, you may file the following form with your employer to have WV tax taken out instead of PA tax: REV-419

Also, please note the screenshots and instructions below so that you can have your PA taxes mistakenly withheld refunded to you:  

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