Yes, she will get a full refund of the Ohio state tax withheld (box 17 of her W-2). She will not get any city tax (box 19) withheld, as the reciprocal agreement does not apply to city tax.
The OH refund will NOT be applied to the WV return. You have to pay the WV tax due, separately. "Any credits from OH will be applied to her WV tax return" is an incorrect statement.
Be forewarned: Ohio does a convoluted tax calculation for non-residents/part year residents. It calculates tax on total income, then it calculates a non resident/part year resident credit, which it subtracts from the tax it calculated on the total income. The credit is calculated as your non-Ohio income divided by Total adjusted Income multiplied by the total tax. TurboTax (TT) does this by allocating your income as either Ohio or non-Ohio. W-2 income will be allocated by the state name abbreviation shown in box 15 of your W-2. TT will ask you, item by item, in the state section, how much of your other income is Ohio or non-Ohio income. Make sure that your non-Ohio wages show WV in box 15 of your W-2 screen, with the WV amount in box 16.
If you indicated you were a WV resident in the personal info section and an Ohio non resident, at the Ohio residency screen in the state section; you’ll get “Neighboring State Compensation” screen early in the Ohio program. There you enter the box 16 amount from your W-2 that Ohio taxed.
OR
After indication you were a non resident of Ohio and a WV resident at the Confirm Ohio residency screen
-"Here's the Income that Ohio Handles Differently"
-Miscellaneous
-Wages of Full year residents of neighboring states
See screen shot at <a rel="nofollow" target="_blank" href="
https://ttlc.intuit.com/questions/4256143-can-not-figure-out-adjustment-allocation-part-in-my-taxes-...>
