West Virginia allows certain subtractions from income on the West Virginia Personal Income Tax Return (Form IT-140) to reduce taxable income. These subtractions are specific to state tax rules and are distinct from federal adjustments. The most common subtraction is for retirement income received from West Virginia state or local police, deputy sheriffs', or firemen's retirement systems.
Subtraction for Public Safety Retirement Income
- Line 31 on Form IT-140 allows a subtraction for eligible retirement income received from West Virginia state or local police, deputy sheriffs’, or firemen’s retirement systems.
- This subtraction applies only to qualifying retirement benefits from these public safety retirement systems. It is separate from the subtraction available for West Virginia Teachers’ Retirement System and West Virginia Public Employees’ Retirement System (PERS).
- A copy of Form 1099-R must be included with the return to support the retirement income subtraction as required by the Form IT-140 instructions.
West Virginia Teachers’ Retirement System and Public Employees’ Retirement System (PERS)
- Line 33(a) on Form IT-140 allows a subtraction for eligible retirement income received from the West Virginia Teachers’ Retirement System and West Virginia Public Employees’ Retirement System (PERS).
- The subtraction is limited to $2,000 of qualifying retirement income.
- A copy of Form 1099-R must be included with the return to substantiate the retirement income reported.
Military Retirement Income
- Military retirement income from the regular Armed Forces, Reserves, or National Guard is reported on Line 32 of Form IT-140.
- The taxable amount reported on the federal return, including eligible survivorship annuities, may be subtracted as allowed under West Virginia law.
- A copy of Form 1099-R must be included with the return as required by the Form IT-140 instructions.
- This military retirement subtraction is separate from the public safety retirement subtraction and should not be claimed on the public safety retirement or PERS/Teachers’ retirement lines.
Source:
Form IT-140 PIT.pdf (West Virginia Personal Income Tax Return 2025)
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.