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RPSwat
New Member

Multi State Tax Issue

I started a new job last September in which I was able to work from home (Alabama).  My new employer inadvertently had VA state tax withheld from my pay.  What do I need to do in order to get a refund for the VA tax?  

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2 Replies
HelenC12
Expert Alumni

Multi State Tax Issue

Once you've determined that you need to file a nonresident state return, the first thing you want to do is make sure you've filled out the Personal Info section correctly:

  1. With your return open, select My Info in the left-hand menu.
  2. Then, on the Personal info summary screen, scroll down to Other State Income, and select Edit.
  3. At the Did you make money in any other states? question, answer Yes and make sure your nonresident state(s) are selected from the drop-down.
  4. Select Continue to return to your Personal info summary.

After you finish your federal return, you'll automatically move to the State tab, where you'll see your nonresident state(s) listed in addition to your resident state.

 

To ensure accurate calculations, we strongly recommend preparing your nonresident state return before you prepare any resident or part-year state returns.

 

More tips:

  • Select the long form (if the option is available) even if TurboTax defaults to the short form.
  • Only report the income attributable to the nonresident state.
  • If preparing a nonresident return solely to recover erroneous tax withholdings, enter 0 on the screen that asks for the amount of income earned in that state. This will eliminate your tax liability for that state, resulting in a full refund.
  • If you live in a reciprocal state, consider submitting an exemption form to your employer so you don't have to file a nonresident return next year.

Source: TurboTax FAQ

 

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cengel7
New Member

Multi State Tax Issue

Thank you. I figured out how to correct the issue. I should have filled out the nonresident state tax first. I will remember that next year.

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