Resident of Ohio but received West Virginia unemployment and West Virginia Withheld State Taxes

[Patty K]

I have a client who is a resident of Ohio who received West Virginia Unemployment.  West Virginia withheld $471 in state withholding.  However, on the info worksheet when I do the West Virginia return and try to check mark Nonresident Special, the program will not allow me to do that, it comes up error Information Worksheet special non-resident box should not be checked since there were no tax payments or withholding to West Virginia, you are not eligible to file It-140 Non resident.  The program has my client paying $72 in income tax to the State of West Virginia.  I went back and double checked the under income the 1099G and I had WV state income tax withheld.  What am I doing wrong.  My client should not have to pay WV.

[Just-Lisa-Now-]

Does Basic have the resident/non-resident state section at the bottom of the Fed Info worksheet?  

Its possible they they may still owe some tax, many non resident states compute the tax on ALL income, then use the % ratio of non-resident income to resident income to figure the % of tax.  So the withholding doesnt always cover everything.

[Patty K]

Thank you for reply. 

Yes, basic does have resident/non resident state section at bottom of the Fed Info sheet.  I have Ohio full time resident and WV as non resident state. 

On the WV info the box checked is Non-resident.  When I uncheck the non-resident box and try to check the non-resident special, a warning box comes up and says "Special non-resident box should not be checked since there were no payments or withholdings to West Virginia."

I went back and checked my 1099G info in the federal and I have the West Virginia unemployment compensation amount and the federal withholding amount and also the West Virginia State income tax withheld.  

Ohio and West Virginia are reciprocal states.  That is why I dont understand why it will not let me check the non-resident special box.  

The only thing I can think of is because the income was not wages or salary, it was unemployment compensation.  

Patty

[sjrcpa]

"Reciprocal" only applies to wages.

So you can't use that special nonresident status. That's for when you work in one state that has reciprocity with your state of residence but you had nonresident state tax withheld.