Live in KY, work in WA...

[jessicay92]

Hi there,

I moved from Kentucky to Washington state in February of 2019 but continue to work my KY job remotely here in WA. When doing my taxes for Kentucky, I was under the impression that I would be getting back most of my income tax from KY, aside from the bit that I made when I was actually *in* Kentucky. However, I recently received a statement of liability that says "amount entered on form 740 or 740-NP as wages does not match those shown on the schedule KW-2 or wage and tax statements." As such, I had to pay in about $30 and they said I wouldn't be getting my ~$1300 refund after all! 

I see the issue they are pointing out as the total wages on the KW-2 are far higher than what I entered on the 740-NP as I only entered the amount I made in the month and a half I was still in that state. I probably just did it wrong, but I'm not really sure what other way to do it. I was going to try to file WA state taxes to see about getting that credit for living in one state but working for another, but Washington doesn't do state income tax! So, I'm a little at a loss. I wouldn't be so concerned if it weren't such a high amount I'd be getting back, and I don't want Kentucky to screw me over, but I'm not sure what to do. Is it worth upgrading to talk to the professionals here on TurboTax? I would certainly be willing to do that if it'd be guaranteed that I could still get some semblance of a refund.

Thanks for the help! Hope I explained it well enough. 😬

[JotikaT2]

Your understanding is correct. 

Since you earned income from Kentucky sources, you do need to pay taxes on the income earned in Kentucky when you were a resident and nonresident.

Boxes 15-17 of your W-2 forms should reflect your state wages and withholdings.  If you did not have enough and are still working there, you should consider reaching out your employer to change your withholding amount to avoid being in the same situation next year.

Also, you cannot claim a credit in Washington as you said.  Washington does not have state income taxes.  The credit is only there to assure you are not taxed twice on the same income.

[jessicay92]

Thanks for the info!

So, from what I understand here, even though by the time taxes roll around next year I'll have been a "permanent" resident of WA, I will still need to continue to pay my KY state income taxes for as long as I work remotely for them? If so, that's a bummer, but good to know that's how I'll need to do it going forward!

[JotikaT2]

Yes, that is correct.