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West Virginia Additions To Income

Understanding New Income Additions in West Virginia

BS

Business Tax Specialist

Tax Expert

3 min read
Published on 6 months ago
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West Virginia Additions to Income are adjustments made to your Federal Adjusted Gross Income (AGI) to calculate your West Virginia Adjusted Gross Income (WV AGI). These additions are calculated using Schedule M (Modifications to Federal Adjusted Gross Income) and the total additions amount is reported on Form IT-140.

The purpose of these additions is to include income items or adjustments required under West Virginia tax law that are not included in federal AGI or that receive different tax treatment for West Virginia income tax purposes.

How to Report Additions to Income

  • Line 1: Enter your Federal Adjusted Gross Income as shown on your federal Form 1040.
  • Line 2: Enter the Total Additions to Income from Schedule M. These may include items such as certain types of interest, dividends, or other income that West Virginia taxes but the federal government does not include in AGI.
  • Line 3: Enter the Total Subtractions from Income from Schedule M (e.g., certain deductions allowed by West Virginia but not federally).
  • Line 4: Calculate West Virginia Adjusted Gross Income by adding Line 1 and Line 2, then subtracting Line 3.

Common Additions to Income

While the specific additions are detailed in Schedule M, typical examples may include:

  • Interest income from certain state or local bonds that are federally tax-exempt but taxable in West Virginia.
  • Dividends from certain foreign corporations.
  • Other income items specifically defined by West Virginia tax law as taxable but excluded from federal AGI.

Source:

Form IT-140 PIT.pdf (Page 26)

Disclaimer: Always verify details with the most current West Virginia 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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  • Keep detailed records of all tax-related expenses and documents
  • Consult with a tax professional for complex situations

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