Category: West Virginia
West Virginia Military Filing Information
MEMBERS OF THE ARMED FORCES
If your legal residence was West Virginia at the time you entered military service, assignment to duty outside the state does not change your West Virginia residency status. You must file your return and pay the tax due in the same manner as any other resident individual unless you did not maintain a physical presence in West Virginia for more than 30 days during the taxable year.
If, during 2016, you spent more than 30 days in West Virginia, you are considered to be a West Virginia resident for income tax purposes and must file a resident return and report all of your income to West Virginia.
If there is no West Virginia income tax withheld from your military income, you may find it necessary to make quarterly estimated tax payments using Form IT-140ES.
If, during 2016, you did not spend more than 30 days in West Virginia and had income from a West Virginia source, you may be required to file an income tax return with West Virginia as any other nonresident individual, depending upon the type of income received.
A member of the Armed Forces who is domiciled outside West Virginia is considered to be a nonresident of West Virginia for income tax purposes; therefore, his/her military compensation is not taxable to West Virginia even though he/she is stationed in West Virginia and maintains a permanent place of abode therein.
Combat pay received during the taxable year is not taxable on the federal income tax return. Therefore, it is not taxable on the state return.
ACTIVE DUTY MILITARY PAY
Military income received while you were a member of the National Guard or Armed Forces Reserves called to duty pursuant to an Executive Order of the President of the United States is not taxable on the West Virginia return. This income is shown on Schedule M, line 48, as a decreasing modification to your federal adjusted gross income. **A copy of your military orders must be included with the return when it is filed.
ADDITIONAL MILITARY RETIREMENT
There is an additional modification for the first $20,000 of military retirement income to the extent it is included in federal adjusted gross income.
The modification for pensions and annuities received from the West Virginia Public Employees’ retirement System, the West Virginia Teachers’ Retirement System, Military Retirement and Federal Retirement is limited to a maximum of $2,000 and entered on Schedule M. The State of West Virginia does not impose an income tax on the retirement income received from any West Virginia state or local police, deputy sheriffs’ or firemens’ retirement system, including any survivorship annuities. See instructions for Schedule M.
SPOUSES OF UNTIED STATES MILITARY MEMBERS
Effective for taxable year 2009, spouses of military service members may be exempt from West Virginia income tax on wages received from services performed in West Virginia if all three of the following conditions are met:
(a) The service member is present in West Virginia in compliance with military orders.
(b) The spouse is in West Virginia solely to be with the service member; and
(c) The spouse maintains domicile in another state.
It is not a requirement for both spouses to have the same state of domicile, nor, in the case of border installations, live in the state where the service member is stationed. Eligible spouses wishing to claim this exemption from income tax may file a revised Form IT-104 with the spouse’s employer and must also attach a copy of their "spouse military identification card" when providing this form to their employer.
Any refunds for taxable year 2016 may be claimed on a properly filed WV/IT-140 indicating "Non Resident Military Spouse" above the title on the first page. Military spouses should indicate the amount of their wages included in their federal adjusted gross income as a decreasing modification of the West Virginia Schedule M. A copy of their State of Legal Residence Certificate form DD2058 must be enclosed with their return when it is filed.
Nonresident military service members and their spouses may be liable for West Virginia income tax on other types of West Virginia income such as business income, interest income, unemployment compensation, etc. These types of income are reported on the Schedule A.