Tuition Trust: West Virginia Prepaid Tuition Trust & Savings Plan Trust
West Virginia residents may benefit from tax advantages when contributing to the West Virginia Prepaid Tuition Trust or the West Virginia Savings Plan Trust, commonly known by trade names such as SMART529 or West Virginia Prepaid College Plan. These programs allow individuals to save for future education expenses while potentially reducing their state taxable income.
Eligible Contributions and Deduction
- Contributions to the West Virginia Prepaid Tuition Trust or Savings Plan Trust may be claimed as a decreasing modification on the state tax return.
- This deduction is reported on Schedule M of the West Virginia individual income tax return (Form IT-140).
- A supporting annual statement must be submitted to validate the deduction. Without this documentation, the modification will be denied.
Reporting Requirements
- Enter the total amount of payments made to the trust on Line 39 of Form IT-140.
- Unqualified withdrawals from the plan must be reported as an increasing modification on Schedule M.
Important Notes
- The deduction is subject to state tax rules and may be phased out or limited based on income or other criteria not specified in the retrieved context.
- Only contributions made to the official West Virginia programs qualify for this benefit.
- For detailed guidance, refer to the official West Virginia Personal Income Tax Forms and Instructions.
Source:
Form IT-140 PIT - Personal Income Tax Forms & Instructions
Disclaimer: Always verify details with official Federal or State Department of Revenue Forms and Instructions before filing.