KY Non-Resident Tax for In-Person Job Performed Remotely

[mortezadm]

Hello dear community people!

We are a couple who resided in VA for the entire 2023. For a few first months of 2023, my wife had a job that was from KY. The position by nature was defined "in-person" (not remote) so they withheld KY taxes but she was performing the duties remotely from VA. Now that I am filing the returns for both KY and VA, I am wondering whether we should pay KY taxes and get the credit in VA, or we should request all the withheld money back from KY so then we pay VA taxes on that.

Specifically for a TurboTax question that says "Enter the portion of the following income items that you earned or incurred in Kentucky, or while you were a resident of Kentucky. Enter a zero if no amount was earned in Kentucky." Should I enter 0, or the wages from the KY employer?

Looking forward for your advice, with many thanks!

[KrisD15 · Accepted solution]

Zero.

Kentucky and Virginia have a reciprocal agreement so if you live in Virginia, you only pay Virginia tax on earnings earned in Virginia and/or Kentucky. 

Allocate all the earnings to Virginia.

File a Kentucky return to get any state tax withheld refunded. 

Reciprocal States