It's common for employers to be late in updating an employee's information when the employee moves to a different state during the tax year - resulting in incorrect information in Boxes 15-17 of the employee's W-2.
My recommendation is to enter your W-2 as is. Then, on your part-year resident Virginia tax return, allocate the correct amount of income to Virginia (do not change the withholding amount in Box 17). ALL the income you earned prior to the date you began living in TN is taxable by Virginia. Virginia will refund any excess withholding. (My answer assumes that you had no income from VA after your move.)
If VA questions your return, simply explain what happened just as you did here.
**Answers are correct to the best of my ability but do not constitute tax or legal advice.
