West Virginia has reciprocal agreements with Kentucky, Maryland, Ohio, Pennsylvania and Virginia. If the taxpayer is a West Virginia resident working in one of these states, and their employer withheld the other state’s income tax, the taxpayer must file for a refund from that state. The taxpayer cannot claim a refund for taxes withheld to a reciprocal state on the resident return.
West Virginia Return:
Complete the information as required.
If the other state is Kentucky:
- State Section
- Add or Edit Nonresident Kentucky Return
- Basic Information.
- Residency Information - Complete the questions indicting the taxpayer is a resident of a reciprocal state
- Return to Kentucky Main Menu
- Complete one form 740-NP-R for the taxpayer and one for the spouse (if applicable).
To claim exempt from Kentucky withholdings in the future, file Form 42A809 with the taxpayers employer.
If the other state is Maryland:
- State Section
- Add or Edit Nonresident Maryland Return
- Basic Information - Complete the questions as they pertain to the taxpayers resident state.
To claim exempt from future Maryland withholdings, complete Form MW507 and file it with the taxpayers employer.
If the other state is Ohio:
- State Section
- Add or Edit Nonresident Ohio Return
- Subtractions From Income
- Employee Compensation earned in OH by residents of neighboring States- Enter the total income earned while a nonresident of Ohio as a positive number
- Return to Ohio Main Menu
- Form IT-NRS - Complete the two sections indicating taxpayers place of Domicile and place of Abode (both should be the taxpayers resident state).
To claim exempt from future withholdings, complete Form IT-4NR and file it with your employer.
If the other state is Pennsylvania:
- State Section
- Nonresident PA return
- Adjustments to Income
- Reciprocal State Wage Adjustment - Enter the wages as a negative number.
Pennsylvania requires proof that taxes were paid to the other state. You must print and mail the PA return along with a copy of the Indiana state return, the W-2(s) with the PA income and a statement explaining you are a resident of a reciprocal state.
To claim exempt from future PA withholdings, file Form REV-419 with the taxpayers employer.
If the other state is Virginia:
If the other state is Virginia, a Virginia return is not required if your only source of VA income was from wages and salaries. Form 763-S is required to be completed to claim a refund for the taxes withheld. The form needs to be mailed to Virginia with a copy of the West Virginia Resident Return and copies of the W-2 (s) used to create the return. The mailing address is located on the form. Complete Form VA-4 to claim exempt from future withholdings. File the form with the taxpayers employer.
Note: The taxpayer may still be liable for county or city taxes in the state where the income was earned. Check with the state for more information.
Additional Information: