Category: West Virginia
West Virginia Subtractions from Income
WEST VIRGINIA LOW-INCOME EARNED INCOME EXCLUSION
You may be eligible to claim the low-income exclusion if you received earned income (see definition) during the taxable year and:
* Your filing status is single, married filing jointly, head of household or widow(er) with a dependent child and your federal adjusted gross income is $10,000 or less; or
* Your filing status is married filing separately and your federal adjusted gross income is $5,000 or less.
This exclusion may be taken even if you are claimed as a dependent on someone else’s return.
EARNED INCOME includes wages, salaries, tips, and other employee compensation. Earned income also includes any net taxable earnings from self-employment reported on the federal Schedule C.
EARNED INCOME does NOT include interest, dividends, and retirement income in the form of pensions or annuities and any other income that is not employee compensation. Earned income does not include income received for services provided by an individual while he or she is an inmate at a penal institution.
ANY WEST VIRGINIA STATE OR LOCAL POLICE, DEPUTY SHERIFF’S OR FIREMEN’S RETIREMENT
Enter the taxable amount of retirement income reported on your federal return which was received from any West Virginia state or local police, deputy sheriff’s or firemen’s retirement system, regardless of your age. This is the taxable amount of retirement income received from these sources, including any survivorship annuities. Subtractions for retirement received from West Virginia Public Employee's Retirement System is limited to $2,000.
WEST VIRGINIA TEACHER’S RETIREMENT AND WEST VIRGINIA PUBLIC EMPLOYEE’S RETIREMENT
Regardless of age, enter the taxable amount of retirement income (not to exceed $2,000) reported on your federal return received from The West Virginia Teacher’s Retirement System and/or The West Virginia Public Employee’s Retirement System. Do not enter more than $2,000.
MILITARY RETIREMENT AND FEDERAL RETIREMENT (Line 42)
Regardless of age, enter the taxable amount of retirement income (not to exceed $2,000) reported on your federal return received from Military Retirement and/or Federal Retirement. Do not enter more than $2,000.
MILITARY RETIREMENT MODIFICATION (Line 43)
There is an additional modification of a maximum $20,000. If your pension is equal to or greater than $22,000, enter $20,000 here. If the pension is less than $22,000, enter the total amount of the pension received less the $2,000 claimed on line 42. In no case should the combined amount (line 42 and line 43) exceed the total amount of military retirement income or $22,000, whichever is less.
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.
Military orders must be included with your return and W-2 information must be reported on IT-140W.
ACTIVE MILITARY SEPARATION
If you have separated from military service, enter the amount of active duty pay that you receive, provided that you were on active duty for thirty continuous days prior to separation
Military orders and discharge papers must be included with your return for this modification. W-2 information must be reported on IT-140W.
CONTRIBUTIONS TO THE WEST VIRGINIA PREPAID TUITION TRUST/WEST VIRGINIA SAVINGS PLAN TRUST
Enter any payments paid to a prepaid tuition trust fund/savings plan trust, but only to the extent the payments have not been previously allowed as a deduction when arriving at your federal adjusted gross income. Year-end contribution statement must be submitted to support this deduction.
WEST VIRGINIA "EZ PASS" DEDUCTION.
Enter the amount, not less than $25 and not to exceed $1,200, of any payment for amounts expended for tolls paid electronically through use of the West Virginia Parkways Authority’s E-ZPass for non-commercial passes for travel on toll roads in West Virginia, not including amounts refunded or reimbursed by an employer. Any amount of qualified tolls paid and eligible for this decreasing modification and not used in the taxable year when paid shall carry forward for up to three (3) years subsequent to the taxable year. Qualified toll payments not used by the end of the carry forward period shall be forfeited.
SENIOR CITIZEN OR DISABILITY DEDUCTION
Taxpayers MUST be at least age 65 OR certified as permanently and totally disabled during 2016 to receive this deduction. Taxpayers age 65 or older have to enter their year of birth in the space provided and complete lines (a) through (d) of the table in order to claim the deduction as a Senior Citizen. Joint income must be divided between spouses with regard to their respective percentage of ownership. ONLY THE INCOME OF THE SPOUSE
WHO MEETS THE ELIGIBILITY REQUIREMENTS QUALIFIES FOR THE MODIFICATION. See an example on page 24. The Disability Deduction can be claimed by taxpayers under age 65 who have been medically certified as unable to engage in any substantial gainful activity due to physical or mental impairment. IF 2016 is the first year of a medically certified disability, you MUST enclose a 2016 West Virginia Schedule H or a copy of Federal Schedule R and enter 2016 as the year the disability began in the space provided. IF the disability deduction has been claimed in prior years AND documentation has been submitted with prior claims, then only the year that the disability began, entered in the space provided, is needed to claim the deduction. The Surviving Spouse of a deceased taxpayer may also qualify for this modification.