West Virginia Special non-resident status

[TRB79]

I am helping my daughter with her taxes.  She claims VA residency but goes to school and works in WV.  In 2022, she had WV state withholding of $992.  We mistakenly filed a WV return showing her as a resident of WV.  She got refund of $74 from WV.  Virgina just came back at her and said she owed them $990. Now trying to submit an amended WV return with her as a special non-resident, but Turbotax is indicating that WV does not owe her a refund.  What do we do to get WV to recognize that they owe her $918

[DaveF1006]

It depends how you prepared the amendment?  Did you follow these procedures?

1. Sign in to TurboTax.
2. On the home screen, scroll down to Your tax returns & documents and select the year you want to amend.
3. Select Amend (change) return, then Amend using TurboTax Online.
4. On the screen OK, let's get a kickstart on your 2022 amended return, select The IRS or state sent me a notice (this will allow you to amend only your state return without making changes to your federal) and Continue.
5. On the next screen, select Something Else and Continue.
6. On the screen Tell us which 2022 return(s) you want to amend, select 2022 state.
7. Continue until the Let's Amend your State Taxes screen. Select Amend next to your state return, and continue through the screens to make your amendments.  This would simply involve changing your residency status in your state return.

[Edited 01/17/24|5:54 pm PST]

[SteamTrain · Accepted solution]

@DaveF1006   2022 taxes, not 2023.

@TRB79 Presumably you are now using the 2022 desktop software to amend...correct?

[Edited in] First, make sure you've started an amended WV tax return.  Most changes are in the Federal section...but your changes shouldn't affect the Federal tax return.

(Probably start a VA amended too, to check to see that the VA billing is close to correct.  Actually filing an amended VA tax return wouldn't be needed unless the VA billing notice asked for one...and paying them what they asked settles it, if you agree with the amount)

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While I'm not an expert on WV, on thing you might need to do is to indicate zero as WV income in box 16 of the software's W-2 form.   And...in the Personal Info area, make sure you've indicated she is a full year VA resident....and indicate WV as the other state she worked in. 

Normally, when a VA resident works in WV, and has no WV taxes withheld...they don't indicate WV as the Other state they worked in...but you have to do that now for 2022 to get WV taxes refunded.  

_____

Since WV and VA have a reciprocal tax agreement, a VA resident (your daughter) working in WV only owes taxes to VA.  Did she work again in WV in 2023?  If she did...did she get her state taxes properly re-set as not WV income with her WV employer?

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[TRB79]

Yes, using 2022 for the amended return.  OK, changing the WV income to zero in Box 16 appears to work.  I also had to change the withholding amount to account for the fact that WV gave her a refund of $74.  Thank you for the help.  We will need to come up with a plan for 2023.  I will be consulting a tax specialist for the best way forward.