I reside and work in NC but my employer must have paid me from one of their Viriginia offices because I received a W-2 for Virginia. If I only earned $1160 there and paid $40 in VA taxes do I still need to file state taxes in VA as a non VA resident?
Yes, however, since your resident state of North Carolina (NC), will provide a credit for taxes paid to Virginia (VA). Prepare the VA return first and then your resident state of NC.
Virginia Source Income:
Taxable income from Virginia sources includes "income from the practice of a trade or business in Virginia" and includes, but is not limited to, wages and salaries earned while in Virginia, income from a business operating in Virginia, rental income from a property in Virginia, etc.
File: Form 763 - Virginia Nonresident Return
The credit for taxes paid to another state on the same income is used on your resident state because they do not want you to pay taxes twice on the same income. As the resident state all worldwide income must be included.
The credit for tax paid to another state on the same income will be the lesser of:
Virginia does not tax the out-of-state remote wage or salary income of non-residents.
From Virginia Statute 23VAC10-110-180:
"Net income, gain, loss and deductions from Virginia sources includes salary, tips or wages earned in Virginia, gain on the sale of property located in Virginia, income or loss from a partnership, estate, trust, or S corporation doing business in Virginia, and income from intangible personal property employed by an individual in a business, trade, profession, or occupation carried on in Virginia."
https://law.lis.virginia.gov/admincode/title23/agency10/chapter110/section180/