Maximizing Tax Savings: Navigating Reciprocal Tax Agreements Between Pennsylvania and Neighboring States(West Virginia)

For West Virginia, residents of reciprocal states like Pennsylvania can use Form WV/IT-104 (West Virginia Certificate of Nonresidence) to claim an exemption from West Virginia state income tax withholding.

Instructions for Using Form WV/IT-104:

  1. Who Should Use It:
    • Residents of Kentucky, Maryland, Ohio, Pennsylvania, and Virginia who work in West Virginia and want to avoid West Virginia state income tax withholding.
  2. How to Use It:
    • Complete Form WV/IT-104, certifying that you are a resident of a reciprocal state (such as Pennsylvania) and are therefore exempt from West Virginia state tax withholding.
    • Submit the completed form to your West Virginia employer to prevent West Virginia income tax from being withheld from your wages.
  3. Where to Get the Form:
  4. Additional Filing Requirements:
    • You will still need to file a resident tax return in Pennsylvania and pay state income taxes there on the income earned in West Virginia.

By submitting Form WV/IT-104, you ensure that West Virginia will not withhold state income tax from your paycheck, and you will only need to pay state taxes to Pennsylvania, your home state.

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