West Virginia’s 2025 Personal Income Tax Return (Form IT-140) includes specific instructions for residents and part-year residents regarding state tax credits and income reporting. One key provision allows residents to claim a credit for income taxes paid to another state, preventing double taxation on the same income. This credit is subject to certain limitations and applies only to income earned while residing in West Virginia.
Resident Credit for Taxes Paid to Another State
- Residents may claim a credit for income taxes paid to another state on income that is also subject to West Virginia income tax. The credit is intended to prevent double taxation of the same income by West Virginia and another state.
- The credit is calculated on Schedule E – Credit for Income Tax Paid to Another State and is limited to the amount of West Virginia tax attributable to the income taxed by the other state.
Part-Year Residents
- Part-year residents may claim a credit for income taxes paid to another state only for income that is included in West Virginia taxable income during the period they were West Virginia residents and that is also taxed by another state.
- The credit must be calculated according to the instructions for Schedule E and is subject to applicable limitations.
Modified Federal Adjusted Gross Income (MAGI) Thresholds
The MAGI thresholds referenced in the instructions apply to specific tax provisions and are not related to the Credit for Income Taxes Paid to Another State. The resident credit calculation is based on the income taxed by West Virginia and another state, the tax paid to the other state, and the limitations provided in Schedule E instructions.
Source:
West Virginia Form IT-140 PIT 2025 Instructions
Disclaimer: Always verify details with the official West Virginia Department of Revenue forms and instructions. For complex tax situations, consult a CPA or tax attorney.