Thank You very much.

I have already advised client to get his company to stop VA W/H and change to DC W/H [VA and DC have a reciprocity agreement].  

I get using VA 763-S is a good way to go but was wondering if we could use DC form D-40 with Schedule U to claim a tax credit from VA W/H saving the hassle and delay in claiming a refund from VA?  [The form says to include the resident Tax return so that needs to go first]

And yes, client is aware of the higher taxes in DC relative to VA  ;-(