It is on a standard W-2 with withholding reported to KY and nothing to VA.  He also gets a K-1 from the business with KY non-resident withholding but that works fine.  It is just the W-2 KY income that the program insists on reporting to VA.  He is 400 miles from KY business and goes there once a month or so.  Lives in Richmond, VA and is VA resident.