VA Resident Worked in PA, but tax withheld in PA W2

[acaceresr87]

Last year, I worked in PA while a resident of VA (address of VA on all W2's). I received my W2 for the two states.

I know there's an agreement between the two states, but I had PA state taxes (and Philadelphia taxes) withheld instead of VA state taxes withheld. In addition, I earned well below the VA threshold of filing requirements ($11,950) but well above the threshold for PA filing requirements ($33).

I have the same income reported for my PA W2 and my VA W2 (VA income is not $0).

I'm wondering how I go about filing state taxes.

[Vanessa A]

The agreement is only for the states, it does not apply for city or local taxes.  

For PA, you will need to file a PA non-resident return and claim $0 for your wages and leave your withholdings the same as is on the W-2.  This will give you a refund of all your withholdings from PA.

You can also contact your employer to have them stop withholding for PA and start withholding for VA. You will need to give them a completed REV-419

[Hal_Al]

See:

https://revenue-pa.custhelp.com/app/answers/detail/a_id/853/~/i-am-a-resident-of-a-reciprocal-state-....

[acaceresr87]

Do I need to file in VA, since I'm well under the VA threshold of filing requirements?

[Vanessa A]

No.  If you are a VA resident and you are under the filing threshold you do not need to file a VA return.  You only need to file the PA non-resident return to claim your refund. 

[Hal_Al]

At the link I provided, The PA Dept of Revenue says:

"You will need to file a PA-40 Income Tax Return. Be sure to indicate your residency status as "nonresident". DO NOT list your compensation on the tax return. The only figure you will enter on the return is the amount of PA state tax withheld by your employer. This same figure is entered on lines 13, 24, 29 and 30. Submit a legible photocopy of your Form W-2, and a SIGNED COPY of the resident income tax return that you filed/will file with your resident state (without the supporting forms and schedules), and a statement explaining that you were a resident of a reciprocal agreement state.

@Vanessa A  - Do You have any knowledge of whether PA is going to insist on a copy of a VA form or will they accept a statement that user isn't required to file a VA return?