We are legal residents of Georgia, but have lived and worked in Virginia for two years. We paid taxes for the entire year to Virginia, but Georgia still insists we pay the same taxes to them. Somewhere I read in the Georgia Tax code that income earned out of state while living out of state is not taxable to Georgia, but I can't find that again. The Georgia tax office gave us a form to fill out, but then ignored it.

For tax purposes, your residency is determined by where you hang your hat at night. If you have lived in VA the past two years, then for tax purposes you are VA residents, not GA. You did the right thing paying tax to VA. But now GA thinks you are GA residents. Could it be that you have a GA address on your W2's, or perhaps used a GA address for your federal filing? If so, then that was the error. What you need to do now is file GA tax returns showing all your income, and then take the credit for taxes paid to other states. You'll have to include a copy of your VA tax return. This should make your GA tax bill cose to $0. Going forward - use your VA address with your employer and with your tax filings - that way you won't have to file GA tax returns.