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:
- Add or Edit Kentucky Nonresident Return
- Were you a Full-year Resident of a Reciprocal State? - Answer yes and select state from list
- Was your Only KY income for 2023 from Salaries or Wages Earned While a Resident of a Reciprocal State? - Answer yes
To claim exempt from Kentucky withholdings in the future, file form 42A809 with the employer.
If the other state is Maryland:
- Add or Edit Nonresident Maryland Return
- Income and Adjustments
- Wages, Salaries, Tips, etc.
- Adjustments to Wages - Enter as a negative amount
To claim exempt from future Maryland withholdings, complete form MW507 and file it with the taxpayers employer.
If the other state is Ohio:
- Add the Ohio Non Resident Return
- Nonresidents who meet certain required criteria - Answer Yes to this question. Reciprocal states qualify.
If this question was answered No when adding the Ohio Nonresident Return:
- Edit Ohio Non Resident Return
- Select Form IT-NRS (affidavit of Non-Ohio Residency). Select Yes to complete the form. Complete the next two sections indicating taxpayer place of Domicile and place of Abode (both should be the resident state).
To claim exempt from future withholdings, complete form IT-4NR and file it with the employer.
If the other state is Pennsylvania:
- Add or Edit Nonresident Pennsylvania return
- Pennsylvania Taxable Income
- Gross Pennsylvania Compensation
- Calculated Wages
- Complete Schedule NHR
Pennsylvania requires proof that taxes were paid to the other state. The return must be printed and mailed along with a copy of the Indiana state return, the W-2(s) with the Pennsylvania 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 employer.
If the other state is Virginia:
If the other state is Virginia, a Virginia return is not required if the taxpayers 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.
- Add or Edit the Virginia Nonresident Return
- Personal Information
- Other Categories
- File Form 763-S
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.
Additional Information: