How to file state,taxes when lived in 1 state and worked in another

[cakebaker70]

I love in Virginia but work in West Virginia and WV state taxes were held out. When I filed our taxes via turbo tax, I filled out recommended forms, but now virginia is billing me for more than I paid into west Virginia and wv isn't refunding. How can I jammed so as not to pay state taxes for both states. I am so confused.

[TomD8]

Virginia and West Virginia have tax reciprocity.  If you live in one and work in the other, and your entire income is W-2 wages, you only have to pay taxes in your home state.  This means that your employer should not be withholding WV taxes.  If this is your situation, you should fill out WV Form IT-104 and file it with your employer.  Here's a link to that form:  http://tax.wv.gov/Documents/TaxForms/it104.pdf  This form officially notifies your employer that you are a VA resident and not subject to WV withholding.

But in order to get a refund of your incorrectly withheld 2016 WV taxes, you will have to file a non-resident WV tax return showing zero WV income.  Of course you will have to file your regular VA tax return as well  All your income IS taxable by VA.

This TurboTax FAQ explains how to file a non-resident state return:  https://ttlc.intuit.com/questions/1901271-how-do-i-file-a-nonresident-state-return

[cakebaker70]

Is the non resident form your talking about a 760cg?  That is the form that I filed based on turbo taxes suggestions when filing my taxes. And Virginia sent a letter stating that it was rejected based on repricrocy agreement between those 2 states. Should I do an amended return?

[TomD8]

You need to do a non-resident tax return for West Virginia.

You need to do a resident tax return for Virginia (Virginia Form 760).

If you follow the instructions in the link I gave you, TurboTax will generate the correct forms.

[cakebaker70]

Ok, I will give it a shot. Thank you.