Currently living in temporary non-resident state

If PA is your permanent state of residence, then use PA as your state of residence at the end of 2016. You will answer this way because even though you are technically in VA at the end of 2016, it is not your legal state of residence (even if you are living there temporarily).

You will only need to file a PA resident state income tax return to report all income (including your VA-source wages). You will not have to file a VA nonresident state income tax return (unless you had VA withholdings (see below)).

VA and PA have what is called a state reciprocal agreement. This allows nonresidents to not have state withholding taxes taken out for wages earned in the state.

Since you will not have an VA state income tax filing, just check that you selected "no" to " Did you make money in any other states?" under the Personal Information section in TurboTax (see screenshots)

You can get rid of a state without clearing your federal return by just deleting the state from your list of states under the "State Taxes" tab.

Please note that you will not have a delete option until you actually start working on the state. Select that you want to start the state return under the state taxes tab. The system will start calculating. Then go back into the state tab at the top of the screen and you should now get a choice for that state to either continue or delete. You won't be charged for just starting the state return. You would only be charged (if applicable) when you are getting ready to file.

In order to get the full refund of your VA state income tax withholdings, you will need to file a nonresident VA return but report zero "0" income from VA (even though you do have VA wage income). You need to file your VA return this way because PA does not allow a credit for tax paid to a reciprocal state on wages, salaries and commissions. If tax was withheld by a reciprocal state (VA), you must file directly with the state for a refund of those taxes. You must mail in this VA nonresident state income tax return and include your state W-2 information. You will want to include an explanatory statement with your VA return stating your situation (that your VA employer withheld VA taxes from your wages in error due to a reciprocal agreement with PA).