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Tuition Trust

Understanding Tuition Trusts for Educational Planning

FA

Family Tax Advisor

Tax Expert

3 min read
Published on 6 months ago
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West Virginia allows taxpayers to claim a state income modification for eligible contributions made to the West Virginia Prepaid Tuition Trust or the West Virginia Savings Plan Trust. These contributions may reduce West Virginia taxable income when properly reported on the West Virginia individual income tax return.

Eligibility Requirements

A taxpayer may claim a modification for:

  • Contributions made during the taxable year to the West Virginia Prepaid Tuition Trust.
  • Contributions made during the taxable year to the West Virginia Savings Plan Trust.

The amount claimed must represent eligible contributions allowed under West Virginia law and must be reported according to the instructions for the applicable tax year.

Reporting on Form IT-140

Enter the allowable amount of qualifying tuition trust contributions on the appropriate modification section of Form IT-140, West Virginia Personal Income Tax Return.

The correct line number and reporting instructions may change from year to year. Taxpayers should refer to the current year’s Form IT-140 Instructions when completing the return.

Documentation Requirements

Taxpayers should keep documentation from the tuition trust program showing:

  • The account information.
  • The amount of contributions made during the taxable year.
  • Any other information needed to verify eligibility.

The West Virginia Tax Division may request supporting documentation to verify the claimed modification. Documentation should be provided if required by the filing instructions or requested by the Tax Division.

Important Notes

  • Only eligible contributions made during the tax year may be claimed.
  • The modification reduces West Virginia taxable income; it is not a federal deduction.
  • Taxpayers must maintain records supporting the claimed amount.
  • If adequate documentation is not provided when requested, the claimed modification may be adjusted or denied.

Source:

Form IT-140 PIT Instructions

Disclaimer: Always verify details with the most current Federal or State Department of Revenue Forms and Instructions. Tax rules may change annually, and individual circumstances may require professional advice from a CPA or tax attorney.

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Key Takeaways

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