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New Member
posted Mar 7, 2022 11:11:40 AM

Why do I owe taxes in Ohio if I live in West Virginia? I work in Ohio, but live in West Virginia. I thought you couldn't be taxed twice?

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3 Replies
Level 15
Mar 7, 2022 11:34:11 AM

IF you worked in Ohio.....but only WV taxes were withheld  (or At least no OH taxes withheld.)

 

Then You DO NOT indicate you worked in another state in the Personal Info page.  ALL W-2 income would be considered as-if you worked only in WV.....then you delete the OH forms entirely

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IF , on the other hand, you worked a Contractor/Self-employed (1099-NEC) job in OH, then just that income would be considered OH income and subject to OH taxation.

 

Employee Tax Expert
Mar 7, 2022 11:46:38 AM

It depends. A full-year nonresident of Ohio living in a reciprocal state (such as West Virginia) does not have to file if the nonresident's only Ohio-sourced income is wages. A reciprocal agreement means that any wages or salary made by a West Virginia resident working in Ohio is taxable only to West Virginia and not to Ohio. Under this agreement, you would not have to file a nonresident return for Ohio. 

 

However, every nonresident living in a reciprocal state having other Ohio-sourced income must file an Ohio nonresident return. Examples include, but are not limited to:

  • Ohio lottery winnings;
  • Ohio casino gaming winnings;
  • Income or gain from Ohio property;
  • Income or gain from a sole proprietorship doing business in Ohio; AND
  • Income or gain from a pass-through entity doing business in Ohio.

If you do owe tax to Ohio, you will not be double-taxed as West Virginia will give you a credit of tax paid to another state. If this is your situation, please make sure that you complete your Ohio return first. Per West Virginia, taxes paid on income derived from sources other than wage and salary or unemployment compensation income is permitted as a credit. 

 

Lastly, if your W-2 had Ohio state withholding, then you would have to file an Ohio nonresident return to get a refund of state taxes paid. If your employer is withholding Ohio state income tax, then you must file Ohio Form IT NR so that they start withholding West Virginia state tax instead.

 

@andrewthompson96

Level 15
Mar 7, 2022 11:52:16 AM

@andrewthompson96 

 

Oh, wow...I Got my states mixed up as to which you worked vs lived in.  I edited my entries in my original post to get it corrected.

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Thanks @LenaH for getting it right....and adding in some of the other exceptions that would require an OH tax filing.