Live in Ohio, Work in West Virginia, Employer Withheld WV state taxes

[MrMatrix]

Hello, I apologize if this has been asked already, but my daughter in college lives in Ohio and worked in West Virginia.  On her W2, it shows the state for withholdings being sent (Box 15) to WV and not Ohio.  It has always been my understanding that you pay State income taxes to the state in which you live and not the state in which you work.  I live in Ohio and work in WV as well, but box 15 on my W2 correctly shows Ohio.  

How is this to be handled?  She was hoping to use Turbotax free edition since her tax return was to be so straightforward.  But now, we are not so sure.  Will she have to file a WV non-resident return to get the withholdings back and then file an Ohio return?  She made a small amount (part-time summer job) so there will be no taxes due anyway.  I have already purchased Turbotax Deluxe for myself, so she can use it and pay the E-file fee(s) if necessary.

[MaryK4]

If your daughter did not complete a FORM WV IT-104NR for her employer, they may not have known not to withhold for West Virginia.  While many reciprocal state employers check the state withholding (especially if they are on the border and have a lot of employees in a neighboring state), sometimes they either miss it or now a lot of HR is done online.  Unfortunately, she is going to have to file the nonresident West Virginia and then file the resident Ohio.  

[MrMatrix]

I'm assuming this can't be done via Turbotax Free edition?  And if so, can it be done via Turbotax Deluxe?  

[ErnieS0]

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.

[Hal_Al]

To save the cost of a 2nd state software, you might trying filling out the form by hand.  Use form IT-140 and Schedule A to claim reciprocity.   Get forms at https://tax.wv.gov/Documents/TaxForms/2021/it140.pdf

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