West Virginia Additions To Income

West Virginia Additions To Income

When filing your West Virginia personal income tax return, certain types of income that are exempt from federal taxation may still be subject to state tax. These are known as "additions to income" and must be reported on your West Virginia return to ensure accurate tax calculation.

What Are West Virginia Additions to Income?

West Virginia requires taxpayers to add back certain types of income that are excluded from federal adjusted gross income (AGI) but are taxable at the state level. These additions ensure that West Virginia’s tax base is not reduced by federal exclusions.

Common Additions to Income

• Interest or Dividend Income on Federal Obligations: Income from bonds or securities issued by U.S. authorities or commissions that are exempt from federal income tax but taxable at the state level. This must be reported on Line 51 of Form IT-140.
• Interest or dividend income on State and Local Bonds (Non-West Virginia): Income from bonds issued by states or local governments other than West Virginia, which may be exempt from federal tax but taxable in West Virginia.
• Interest on Money Borrowed to Purchase Tax-Exempt Bonds: Interest paid on loans used to purchase bonds that earn tax-exempt income is added back for West Virginia tax purposes.

Reporting Additions on Form IT-140

On Form IT-140, additions to income are reported in the "West Virginia Modifications to Income" section (Line 4). You must enter the full amount of any modification allowed on your West Virginia return. These additions are not annualized and should be shown as positive or negative figures as applicable.

For part-year residents or those with non-resident income, ensure you allocate additions correctly based on residency periods. The annualized income worksheet (Form 210) helps calculate income for partial-year residents.

Important Notes

• Always include additions to income even if they are not included in your federal AGI.
• For partnerships, report your distributive share of income on Line 1 of Schedule EK-1, and the tax paid on Line 2.
• Distributive income percentage should be entered as a decimal rounded to six decimal places.

Source:
Form IT-140 PIT - Personal Income Tax Forms & Instructions
Schedule EK-1 - Partnership Income Allocation
Form 210 - Annualized Income Worksheet
Form WV-8379 - Allocation of Joint Income

Disclaimer: Always verify information with official Federal or State Department of Revenue Forms and Instructions before filing.