West Virginia Tax Form IT-140 - Income Tax Return Instructions

General Informations

NEW FOR TAX YEAR 2008

Expanded Form -The 2008 Income Tax form has been expanded to allow larger spaces for entries. This will permit our scanning equipment to accurately read your data and decrease the time for processing. The Tax Department anticipates being able to issue refunds quicker and in a more timely fashion.

No Labels - It will no longer be necessary to affix a label to the front of your return. See page 9 for tips on filing a paper return. If you normally file a paper return you should consider electronically filing your return. E-filed returns are processed quicker and refunds that are direct deposited are issued much faster.

Senior Citizens - Seniors eligible for the Homestead Exemption program administered by their county may be entitled to claim a refundable income tax credit. The new Homestead Excess Property Tax Credit may also be available, but these two credits must be compared to determine which one is the larger credit. In order to make this comparison, the worksheets in this booklet need to be completed and an Income Tax return must be filed. See pages 40 and 41.

Family Tax Credit -This credit is available to certain individuals or families who meet income limitations and family size. This year the amount of the credit can, in some cases, offset the amount of tax due by 100%. You must complete the worksheet in this booklet to determine if you are eligible for the credit. See pages 38 and 39.

NEW CREDITS

Homestead Excess Property Tax Credit - Beginning with tax year 2008, there is a new refundable personal income tax credit for real property taxes paid in excess of 4% of a taxpayer’s income. The maximum refundable tax credit is $1,000.00. You must complete the worksheet on page 40 to determine if you are eligible for the credit.

West Virginia Film Industry Investment Tax Credit -This credit was created to encourage economic growth through the production of motion pictures and other commercial film or audiovisual projects in WV. It is in the public interest and promotes the general welfare of the people in this State. See Publication TSD 110 and schedule FIITC-1 for more information.

Apprenticeship Training Tax Credit - Beginning with tax year 2008, a credit is allowed for wages paid to apprentices in the construction trades who are registered with the US Dept. of Labor, Office of Apprenticeship and WV State Office, in the tax year that an apprentice and taxpayer participate in a qualified apprenticeship training program. See Publication TSD 110 and form WV/ATTC-1 for more information.

ELECTRONIC FILING

For tax year 2007, over 430,000 or nearly 60% of West Virginians electronically filed their income tax returns. E-file is the preferred method for filing tax returns. This allows the Tax Department to process data more quickly than paper returns and issue refunds faster with fewer errors.

ELECTRONIC SERVICES

Free Filing - West Virginia, in partnership with an alliance of tax software companies, offers free electronic filing for those who qualify. To take advantage of this free filing, you must access the participating software companies through the West Virginia State Tax Department’s website www.wvtax.gov/ using the Free Income Tax Online Filing link.

On-line Filing - Both state and federal returns may be transmitted at the same time from your home computer. However, with supporting software, you may be able to file the West Virginia return separately.

Fill-In Forms -You may complete your return by using web fill-in forms that are available on our website at www.wvtax.gov/. Calculations are automatically done for you in order to minimize mathematical errors.

MAILING ADDRESSES

REFUND:

West Virginia State Tax Department
PO Box 1071
Charleston, WV 25324-1071

BALANCE DUE:

West Virginia State Tax Department
PO Box 3694
Charleston, WV 25336-3694

AUTOMATED INFORMATION & INTERNET SERVICES

Our Interactive Voice Response System, which is available 24 hours a day, can be used to check the status of your refund and request forms and publications.

You may call (304) 344-2068 or toll-free 1-800-422-2075 from your touch tone phone or access the Tax Department’s website at www.wvtax.gov/ to check on your refund. When checking the status of your refund, you will be asked to provide the social security number listed first on the return; the dollar amount of the refund and your filing status. Only one inquiry may be made within a seven day period.

Answers to a number of Frequently Asked Questions can be found on our website or, if you are unable to find your answer, you may email us at wvtaxaid@tax.state.wv.us

FEDERAL TAX CREDIT (EITC)

The Earned Income Tax Credit (EITC) is a refundable Federal Tax Credit for working families with income less than $38,646. If you are eligible, you may receive money back from the Internal Revenue Service even if you don’t owe taxes. Contact the IRS at 1-800-829-1040 for additional information or see their website www.irs.gov.

General Information

Who Must File

You must file a West Virginia income tax return If:

  • you were a resident of West Virginia for the entire taxable year.
  • you were a resident of West Virginia for a part of the taxable year (Part-Year Resident).
  • you were not a resident of West Virginia at any time during 2008, but your federal adjusted gross income includes income from West Virginia sources (Nonresident); or
  • you were a domiciliary resident of West Virginia but you
    • maintained no permanent place of abode in West Virginia,
    • spent less than 30 days in West Virginia during 2008, and
    • maintained a permanent place of abode outside West Virginia (Nonresident).

You are required to file a West Virginia return even though you may not be required to file a federal return if:

  • your West Virginia adjusted gross income is greater than your allowable deduction for personal exemptions ($2,000 per exemption, or $500 if you claim zero exemptions). Your income and number of exemptions are to be determined as if you had been required to file a federal return.
  • you are due a refund.

You are not required to file a West Virginia return if you and your spouse are 65 or older and your total income is less than your exemption allowance plus the senior citizen modification. For example, $2,000 per exemption plus up to $8,000 of income received by each taxpayer who is 65 or older. However, if you are entitled to a refund you MUST file a return.

What Form To Use

IT-140 Resident.A resident is an individual who:

  • spends more than 30 days in West Virginia with the intent of West Virginia becoming his/her permanent residence; or
  • maintains a physical presence in West Virginia for more than 183 days of the taxable year, even though he/she may also be considered a resident of another state.

IT-140 Part-Year Resident.A part-year resident is an individual who changes his/her residence either:

  • from West Virginia to another state, or
  • from another state to West Virginia during the taxable year.

IT-140 Full Year Nonresident.A full year nonresident is an individual who is:

  • a resident of another state who does not maintain a physical presence within West Virginia and does not spend more than 183 days of the taxable year within West Virginia; or
  • a resident of West Virginia who spends less than 30 days of the taxable year in West Virginia, and maintains a permanent place of residence outside West Virginia.

IT-140NRS Special Nonresidents.You must file the special nonresident return (form IT-140NRS) if:

  • you were not a part-year resident of West Virginia; and
  • you were a resident of Kentucky, Maryland, Ohio, Pennsylvania, or Virginia for the entire taxable year; and
  • your only source of West Virginia income was from wages and salaries.

IT-140NRC Composite Return.Nonresident individuals who are partners in a partnership, shareholders in an S-corporation or beneficiaries of an estate or trust who derive income from West Virginia sources may elect to file a nonresident composite income tax return, Form IT-140NRC. A $50 processing fee is required for each composite return filed.

If a separate individual return is filed, the nonresident must include the West Virginia income derived from the pass-through entity filing the composite return. Credit may be claimed for the share of West Virginia income tax remitted with the composite return.

This form is available on our website at www.wvtax.gov/ 

Amended Return

For tax years beginning after January 1, 2007, use form IT-140 and mark the “Amended Return” box on the front of the form. For tax years prior to January 1, 2007, use form IT-140X. This form is available on our web site at www.wvtax.gov/

You must file a West Virginia Amended Return, if any of the following conditions occur:

  1. To correct a previously filed West Virginia return; or
  2. You filed an amended federal income tax return and that change affected your West Virginia tax liability; or
  3. The Internal Revenue Service made any change to your federal return (i.e., change in federal adjusted gross income, change in exemptions, etc.).

If a change is made to your federal return, an amended West Virginia return must be filed within ninety

(90) days. A copy of your amended federal income tax return must be enclosed with the West Virginia amended return. If you are changing your filing status from married filing jointly to married filing separately or from married filing separately to married filing jointly, you must do so in compliance with federal guidelines. If your original return was filed jointly and you are amending to file separately, your spouse must also file an amended separate return.

If the amended return is filed after the due date, interest and penalty for late payment will be charged on any additional tax due. An additional penalty will be assessed if you fail to report any change to your federal return within the prescribed time.

Space is provided on page 27 to explain why you are filing an Amended Return.

Nonresident/ Part-year Resident Information

A part-year resident is subject to West Virginia tax on the following:

Taxable income received from ALL sources while a resident of West Virginia; West Virginia source income earned during the period of nonresidence; and applicable special accruals.

West Virginia Source Income

The West Virginia source income of a nonresident is derived from the following sources included in your federal adjusted gross income:

  • real or tangible personal property located in West Virginia;
  • employee services performed in West Virginia;
  • a business, trade, profession or occupation conducted in West Virginia;
  • a corporation in which you are a shareholder which makes an election under federal tax law to be taxed as an S-corporation;
  • your distributive share of West Virginia partnership income or gain;
  • your share of West Virginia estate or trust income or gain and royalty income;
  • West Virginia Unemployment Compensation benefits.

West Virginia source income of a nonresident does not include the following income even if it was included in your federal adjusted gross income:

  • annuities and pensions;
  • interest, dividends or gains from the sale or exchange of intangible personal property unless they are part of the income you received from conducting a business, trade, profession or occupation in West Virginia.

NONRESIDENTS AND PART-YEAR RESIDENTS MUST FIRST COMPLETE LINES 1 THROUGH 7 OF FORM IT-140, THEN COMPLETE SCHEDULE A. To compute tax due, use the calculation worksheet located below Schedule A. (Line by line instructions for Schedule A can be found on pages 32 thru 34.)

Income In Column A of Schedule A, you must enter the amounts from your Federal return. Income received while you were a resident of West Virginia must be reported in Column B. Income received from West Virginia sources while a nonresident of West Virginia must be reported in Column C. For additional information regarding West Virginia source income, see above.

Adjustments The amounts to be shown in each line of Column B and/or Column C of Schedule A are those items that were actually paid or incurred during your period of West Virginia residency, or paid or incurred as a result of the West Virginia source income during the period of nonresidence. For example, if you made payments to an Individual Retirement Account during the entire taxable year, you may not claim any payments made while a nonresident unless the payments were made from West Virginia source income. However, you may claim the full amount of any payments made during your period of West Virginia residency.

Special Accruals In the case of a taxpayer changing from a RESIDENT to a NONRESIDENT status, the return must include all items of income, gain, or loss accrued to the taxpayer up to the time of his change of residence. This includes any amounts not otherwise includible on the return because of an election to report income on an installment basis. The return must be filed on the accrual basis whether or not that is the taxpayer’s established method of reporting.

For example, a taxpayer who moves from West Virginia and sells his West Virginia home on an installment plan must report all income from the sale in the year of the sale, even though federal tax is deferred until the income is actually received.

Filing Status

There are five (5) filing status categories for state income tax purposes. Your filing status will determine the rate used to calculate your tax.

  1. Single.
  2. Head of Household.
  3. Married Filing Separately. If you are married but filed separate federal returns, you MUST file separate state returns. If you file separate returns you must use the “Married Filing Separately” tax rate Schedule II to determine your state tax.
  4. Married Filing Jointly. You must have filed a joint federal return to be eligible to file a joint state return. If you filed a joint federal return, you may elect to file your state return as either “Married Filing Jointly” using the state’s tax Rate Schedule I or as “Married Filing Separately” using Rate Schedule II.
  5. Widow(er) with a dependent child.

When joint federal but separate state returns are filed, each spouse must compute his or her West Virginia adjusted gross income separately as if the federal adjusted gross income of each had been determined on separately filed federal returns.

If one spouse was a resident of West Virginia for the entire taxable year and the other spouse a nonresident for the entire taxable year and they filed a joint federal income tax return, they may choose to file jointly as residents of West Virginia. The total income earned by each spouse for the entire year, regardless of where earned, must be reported on the joint return as taxable to West Virginia. No credit will be allowed for income taxes paid to the other state.

A joint return may not be filed if one spouse changes residence during the taxable year, while the other spouse maintained status as a resident or nonresident during the entire taxable year.

Deceased Taxpayer

A return must be filed for a taxpayer who died during the taxable year. Check the box “DECEASED” and enter the date of death to the right of the box. If a joint federal return was filed for the deceased and the surviving spouse, the West Virginia return may be filed jointly. The surviving spouse should write on the signature line for the deceased “filing as surviving spouse”. If a refund is expected, a completed Schedule F must be enclosed with the return so the refund can be issued to the surviving spouse or to the decedent’s estate.

Exemptions

The West Virginia personal exemption allowance is $2,000 per allowable exemption or $500 for zero exemptions. The number of West Virginia personal exemptions that you are allowed to claim are the same number as your federal exemptions. If you claim zero exemptions on your federal return because you are claimed as a dependent on another person’s return, you must claim zero on your West Virginia return.

Itemized Deductions

The State of West Virginia does not recognize itemized deductions for personal income tax purposes. Consequently, itemized deductions claimed on the federal income tax return cannot be carried to the West Virginia return. Gambling losses claimed as itemized deductions on the federal income tax return cannot be deducted on the West Virginia tax return. Consequently, there is no provision in the West Virginia Code to offset gambling winnings with gambling losses

Senior Citizens Tax Credit

Low-income taxpayers who are eligible for the homestead property tax exemption may be eligible for the Senior Citizens Tax Credit. YOU MUST FILE A RETURN TO RECEIVE THIS REFUNDABLE CREDIT.

Credit eligibility is restricted to taxpayers who participate in the Homestead Exemption program, who incur and pay property taxes and whose federal adjusted gross income is less than 150% of federal poverty guidelines.

The maximum federal adjusted gross income level is $15,600 for a single person household plus an additional $5,400 for each additional person in the household (e.g., $21,000 for a two-person household).

Additional information can be found on page 41 of this booklet and in Publication TSD-411 which can be found on our website at www.wvtax.gov/.

Injured Spouse

You may be considered an injured spouse if you file a joint return and all or part of your refund was, or is expected to be, applied against your spouse’s past due child support payments or a prior year tax liability. You must file an injured spouse allocation form (Form WV-8379) to claim your part of the refund if all three of the following apply:

  1. You are not required to pay the past due amount.
  2. You received and reported income (such as wages, taxable interest, etc.) on a joint return.
  3. You made and reported payments such as West Virginia tax withheld from your wages or estimated tax payments.

If all of the above apply and you want your share of the overpayment shown on the joint return refunded, you must:

  1. Check the injured spouse box on the front of the return.
  2. Complete the West Virginia Injured Spouse Allocation Form, WV-8379.
  3. Enclose the completed form with your West Virginia personal income tax return.

DO NOT check the injured spouse box unless you qualify as an injured spouse and have enclosed the completed form with your return. This will cause a delay in the processing of your refund.

Members of the Armed Forces

If your legal residence was West Virginia at the time you entered military service, assignment to duty outside the state does not change your West Virginia residency status. You must file your return and pay the tax due in the same manner as any other resident individual unless you did not maintain a physical presence in West Virginia for more than 30 days during the taxable year.

If, during 2008, you spent more than 30 days in West Virginia, you are considered to be a West Virginia resident for income tax purposes and must file a resident return and report all of your income to West Virginia.

If there is no West Virginia income tax withheld from your military income, you may find it necessary to make quarterly estimated tax payments using Form IT-140ES.

If, during 2008, you did not spend more than 30 days in West Virginia, and had income from a West Virginia source, you may be required to file an income tax return with West Virginia as any other nonresident individual, depending upon the type of income received.

A member of the Armed Forces who is domiciled outside West Virginia is considered to be a nonresident of West Virginia for income tax purposes; therefore, his/her military compensation is not taxable to West Virginia even though he/she is stationed in West Virginia and maintains a permanent place of abode therein.

Combat Pay Combat pay received during 2008 is not taxable on the federal income tax return. Therefore, it is not taxable on the state return.

Active Duty Military Pay Military income received while you were a member of the National Guard or Armed Forces Reserves called to duty pursuant to an Executive Order of the President of the United States is not taxable on the West Virginia return. This income is shown on Schedule M, line 43, as a decreasing modification to your federal adjusted gross income.

Taxpayers over age 65 or Disabled

An individual, regardless of age, who was certified by a physician as being permanently and totally disabled during the taxable year, or an individual who was 65 before the end of the taxable year may be eligible for certain modifications that will reduce their federal adjusted gross income for West Virginia income tax purposes up to $8,000. See instructions for Schedule M on pages 12 and 28.

Certain State and Federal Retirement Systems

The modification for pensions and annuities received from the West Virginia Public Employees Retirement System, the West Virginia Teachers Retirement System, Military Retirement and Federal Retirement is limited to a maximum of $2,000 and entered on Schedule M. The State of West Virginia does not impose an income tax on the retirement income received from any West Virginia state or local police, deputy sheriff’s or firemen retirement system, including any survivorship annuities. See instructions for Schedule M on pages 12 and 28.

Additional Military Retirement

There is an additional modification for the first $20,000 of military retirement income to the extent it is included in federal adjusted gross income.

US Railroad Retirement

The State of West Virginia does not tax this income. All types of United States Railroad Retirement Board benefits, including unemployment compensation, disability and sick pay included on the federal return should be entered on Schedule M.

Surviving Spouse

Regardless of age, a surviving spouse of a decedent may be eligible for a modification reducing his/her income up to $8,000 provided he or she did not remarry before the end of the taxable year. The modification is claimed on Schedule M. The decedent must have attained the age of 65 prior to his/her death or, regardless of age, must have been certified as permanently and totally disabled. See specific definitions and line-by-line instructions for Schedule M to determine if you qualify for this modification. The surviving spouse should write on the signature line for the deceased “filing as surviving spouse”.

A surviving spouse who has not remarried at any time before the end of the taxable year for which the return is being filed, may claim an additional exemption for the two (2) taxable years following the year of death of his/her spouse.

WV College Savings Plan And Prepaid Tuition Trust Funds

Taxpayers making payments or contributions to programs of the West Virginia Prepaid Tuition Trust and/ or West Virginia Savings Plan Trust, operated under the trade names of SMART529TM or West Virginia Prepaid College Plan, may be eligible for a modification reducing the federal adjusted gross income. This deduction can be claimed in the amount and in the year that the contribution is made or the remainder of the reducing modification may be carried forward for a period not to exceed five taxable years beginning in the tax year in which the payment or contribution was made. For more information regarding participation in this program, contact the SMART529TM Service Center at 1-866-574-3542.

Filing Requirements For Children Under Age 18 Who Have Unearned (Investment) Income

Any child under the age of 18 who has investment income and whose parents qualify and elect to report that income on their return, is not required to file a return with the State of West Virginia. This election is made in accordance with federal guidelines.

Any child under the age of 18 whose income is not reported on his/her parents return must file their own West Virginia return and report all of their income. If the child is claimed as an exemption on their parents return, he/she must claim zero exemptions on the state return and claim a $500 personal exemption allowance.

Refund Of Overpayment

A return must be filed to obtain a refund of any overpayment. In order to receive a refund of an overpayment of $2 or less, you must enclose a signed statement with your return requesting that the refund be sent to you.

Direct Deposit

You may have your refund directly deposited into your bank account, providing the return contains no errors or does not require special processing. To avoid delay of your direct deposit, verify your routing and account numbers from a check before filing your return. Refunds are issued in the form of United States’ currency. If you choose to have your refund direct deposited, your depositor must be capable of accepting US currency.

Payment Of Tax Due

The balance of tax due must be paid in full on or before April 15, 2009. Make your check or money order payable to the West Virginia State Tax Department. If your check is returned for “insufficient funds” or “uncollected funds” the Department reserves the right to collect such funds electronically. Payment of tax in the form of a check, money order or funds transferred electronically must be made in the form of United State’s currency. See page 14 for additional payment options.

Penalties And Interest

Interest must be added to any tax due that is not paid by the due date of the return even if an extension of time for filing has been granted. The rate of interest will be determined every six months under regulations promulgated by the State Tax Commissioner. The annual rate of interest cannot be less than eight percent (8%).

The applicable interest rate for taxable year 2008 for tax underpayments is nine and one-half percent (9.5%).

Penalties (i.e. Additions to Tax) for late filing can be avoided by sending in your return by the due date. The law provides that a penalty of five percent (5%) of the tax due for each month, or part of a month, may be imposed for the late filing of the return up to a maximum of twenty-five percent (25%) unless reasonable cause can be shown for the delay.

The law provides that an additional penalty may be imposed for not paying your tax when due. This penalty is one-half of one percent (1/2 of 1%) of the unpaid balance of tax for each month, or part of a month, the tax remains unpaid, up to a maximum of twenty-five percent (25%).

You may access an Interest and Additions to Tax Calculator on our website at www.wvtax.gov/ or you may call (304) 558-3333 or 1-800-982-8297 for assistance.

The West Virginia Tax Crimes and Penalties Act imposes severe penalties for failing to file a return or pay any tax when due, or for making a false return or certification. The mere fact that the figures reported on your state return are taken from your federal return will not relieve you from the imposition of penalties because of negligence or for filing a false or fraudulent return. The statue of limitations for prosecuting these offenses is three years after the offense was committed.

Penalty For Underpayment Of Estimated Tax

If your return shows a balance due greater than $600, you may be subject to a penalty for not prepaying enough personal income tax through withholding and/or quarterly estimated tax payments. The penalty is computed separately for each installment due date. Therefore, you may owe the penalty for an earlier due date even if you paid enough tax later to make up the underpayment. This is true even if you are due a refund when you file your tax return. However, you may be able to reduce or eliminate the penalty by using the annualized income installment method. Use form IT-210 on page 25 to calculate your penalty. Instructions can be found on page 35. If you do not complete form IT-210, the West Virginia State Tax Department will calculate the penalty for you. You will receive a notice for the amount of penalty due.

To avoid future penalties, you should increase your withholding tax or begin making quarterly estimated payments for tax year 2009.

Credit For Estimated Tax

You must make quarterly estimated tax payments if your estimated tax liability (your estimated tax reduced by any state tax withheld from your income) is at least $600, unless that liability is less than ten percent (10%) of your estimated tax. The total estimated tax credit to be claimed on your return is the sum of the payments made with the quarterly installments for taxable year 2008, any overpayments applied from your 2007 personal income tax return and any payments made with your West Virginia Application for Extension of Time to File (Schedule L).

Extension Of Time

If you obtain an extension of time to file your federal income tax return, you are automatically allowed the same extension of time to file your West Virginia income tax return. Enter on your West Virginia return the date to which the federal extension was granted. If a federal extension was granted electronically, write “Federal Extension Granted” and the confirmation number at the top of the West Virginia return. Enter the extended due date in the appropriate box. A copy of Federal Schedule 4868 must be enclosed with your return. If you need an extension of time for West Virginia purposes but not for federal purposes, or if you expect to owe tax to West Virginia, you must submit a completed West Virginia Application for Extension of Time to File (Schedule L) and pay any tax expected to be due. See page 28 for additional instructions.

Signature

Your return MUST be signed. A joint return must be signed by both husband and wife. If you and your spouse (if filing a joint return) do not sign the return, it will not be processed. If the return is prepared by an authorized agent of the taxpayer, the agent must also sign on the line provided and enter his/her address and telephone number. If a joint federal return was filed for a deceased taxpayer, the surviving spouse should write on the signature line for the deceased “filing as surviving spouse”.

Failure To Receive A Withholding Tax Statement (W-2)

If you fail to receive a withholding tax statement (Form W-2, W-2G, or 1099) from an employer by February 15th, you may file your income tax return using a substitute form. All efforts to obtain a W-2 statement from the payer must be exhausted before a substitute form will be accepted. West Virginia Substitute W-2 (Form WV/IT-102-1) must be completed and enclosed with your income tax return in the same manner as Form W-2. This information may be obtained from your pay stub(s). The federal Form 4852 (Substitute for Form W-2) does not provide all the information necessary to process your state return. It WILL NOT be accepted in lieu of Form WV/IT-102-1.

Prior Year Liabilities

Tax Taxpayers who have delinquent tax liabilities, State or Federal, may not receive the full amount of their tax refund. If you have an outstanding state or federal tax lien, your refund will be reduced and applied to your past due liability. If a portion of your refund is captured, you will receive a notice and a check for the balance of the refund. Any final unpaid West Virginia personal income tax liabilities may be referred to the United States Treasury Department in order to capture that amount from your federal income tax refund.

IRS Information Exchange

The West Virginia State Tax Department and the Internal Revenue Service share tax information including results of any audits. Differences, other than those allowed under state law, will be identified and may result in the assessment of a negligence penalty. Taxpayers so identified will be subject to further investigation and future audits.

The American Jobs Creation Act

This Act, in part, is a federal tax benefit that allows a deduction for certain domestic production activities. The deduction is attributable to the qualifying production activities of a partnership or S corporation. West Virginia law does not allow this deduction and any amount deducted under Section 199 Internal Revenue Code must be reported as an increasing modification on Schedule M.

Pension Benefit Guaranty Modification

If you retired under an employer-provided defined benefit plan that terminated prior to or after retirement and the pension plan is covered by a guarantor whose maximum benefit guarantee is less than the maximum benefit to which you were entitled, you may be allowed a reducing modification of the difference between the amount you would have received had the plan not terminated and the amount actually received from the guarantor. Enclose the completed Schedule PBGC (page 27) and a copy of the 1099R provided by the guarantor. Failure to do so will delay the processing of your return.

Form IT-140 Instructions

For tax year 2008, unless you have a valid extension, the due date for filing your West Virginia tax return is April 15, 2009.

Complete your federal return before you begin your West Virginia return. Your completed federal return will contain information which you must enter on the state return.

If you are on a federal extension or have filed the West Virginia Schedule L, enter the due date of the return with regard to the extension. Check the box and enter the appropriate date if you are a fiscal year end taxpayer.

Social Security Number Name Address

Print your social security number as it appears on your social security card. Enter your name and address in the spaces provided.

If you are married and filing a joint return or married filing separate returns, fill in your spouse’s name and your spouse’s social security number.

If the taxpayer or spouse died during the taxable year, check the box by the decedent’s social security number and enter date of death to the right of the box.

Check Boxes

Amended Return Check this box if you are filing an amended return. Check both boxes if you are filing an amended return reflecting a net operating loss.

Nonresident or Part-Year Resident Check this box if you are filing as a nonresident or part-year resident. See page 3 for additional information regarding residency status.

 Injured Spouse If filing an injured spouse claim (Form WV-8379), check the injured spouse box. See page 6 for additional information.

Exemptions If your filing status for West Virginia purposes is the same as on your federal return, enter the total number of exemptions claimed on your federal return on line 1. If you claimed zero exemptions on your federal return, you must claim zero exemptions on your state return. If you are married filing a joint federal return but are filing separate state returns, enter the total number of exemptions you would have been entitled to claim if you had filed separate federal returns.

If you are eligible to claim an additional exemption as a surviving spouse, enter the spouse’s social security number and year of death and enter “1” on line 2. See page 7 for additional information.

Enter the total number of exemptions claimed on lines 1 and 2 on line 3.

Filing Status CHECK ONLY ONE. Your filing status is generally the same filing status shown on your federal return. See page 5 for more information regarding your filing status.

COMPLETE LINES 1 THROUGH 27 OF FORM IT-140 ACCORDING TO THE FOLLOWING INSTRUCTIONS.

Line 1 FEDERAL ADJUSTED GROSS INCOME.

Enter your federal adjusted gross income as shown on Federal Form 1040, Form 1040A or Form 1040EZ .

Line 2 ADDITIONS TO INCOME.

Enter the total additions to income shown on line 34 of Schedule M (page 15). See page 12 for additional information.

Line 3 SUBTRACTIONS FROM INCOME.

Enter the total subtractions from income shown on line 48 of Schedule M (page 15). See pages 12 and 29 for additional information.

Line 4 WEST VIRGINIA ADJUSTED GROSS INCOME.

Enter the result of line 1 plus line 2 minus line 3.

Line 5 LOW-INCOME EARNED INCOME EXCLUSION.

To determine if you qualify for this exclusion, complete the worksheet on page 39 and enter the qualifying exclusion on this line.

Line 6 EXEMPTIONS.

Enter the number of exemptions shown in Box 3 above and multiply that number by $2,000. If you claimed zero exemptions, enter $500 on this line.

Line 7 WEST VIRGINIA TAXABLE INCOME.

Line 4 minus lines 5 and 6 and enter the result on this line. If less than zero, enter zero.

Line 8 WEST VIRGINIA INCOME TAX.

CHECK THE APPROPRIATE BOX TO INDICATE THE METHOD YOU USED TO CALCULATE YOUR TAX.

RESIDENTS-If your filing status is single, head of household, widow(er) with a dependent child or married filing jointly and your taxable income is less than $100,000, apply the amount of taxable income shown on line 7 to the Tax Table on page 42 and enter your tax on this line. If your taxable income is over $100,000, use Rate Schedule I, (page 44) to compute your tax.

If your filing status is MARRIED FILING SEPARATELY, you MUST use Rate Schedule II, (page 44) to compute your tax.

NONRESIDENTS AND PART-YEAR RESIDENTS-If you are a nonresident or part-year resident of West Virginia, you must first complete lines 1 through 7 of Form IT-140, then complete Schedule A on page 21. Compute your tax by using the tax calculation worksheet located below Schedule A.

If you are subject to the Federal Alternative Minimum Tax, use Schedule T (page 16) to compute your total West Virginia income tax.

Line 9 FAMILY TAX CREDIT.

Enter the amount of allowable credit, if any, shown on line 8 of the West Virginia Family Tax Credit Worksheet found on page 38.

Line 10 ADJUSTED WEST VIRGINIA TAX.

Line 8 minus line 9.

Line 11 WEST VIRGINIA USE TAX DUE.

Individual purchaser’s use tax is due on the purchase of goods or services when Sales Tax has not been paid. See page 40 for additional information and the worksheet to be used to calculate this tax if applicable.

Line 12 TOTAL TAXES DUE.

Line 10 plus line 11.

Line 13 WEST VIRGINIA INCOME TAX WITHHELD.

Enter the total amount of West Virginia tax withheld as shown on your Form W-2, Form 1099, etc.. If you are filing a joint return, be sure to include any withholding for your spouse. A legible withholding tax statement (Form W-2, Form 1099, etc.) must be enclosed with your return and must agree with the total amount reported on this line. Failure to submit these documents will result in the disallowance of the credit claimed. Local or municipal fees cannot be claimed as West Virginia income tax withheld.

Line 14 ESTIMATED TAX PAYMENTS.

Enter the total amount of estimated tax payments paid by you (and your spouse) for taxable year 2008. Include any 2007 overpayment you carried forward to 2008 and any payment made with your West Virginia Application for Extension of Time to File (Schedule L).

Line 15 CREDITS FROM TAX CREDIT RECAP SCHEDULE.

Enter Total Credits shown on line 18 of the Tax Credit Recap Schedule found on page 16.

Line 16 AMENDED RETURN ONLY.

Enter the amount, if any, paid on your original return.

Line 17 SUM OF PAYMENTS AND CREDITS.

Add lines 13 through 16 and enter the result on this line. Amounts must be entered in lines 13 through 16 to support the amount entered on line 17. If you enter an amount on line 17 without entering anything on lines 13 through 16, the processing of your return will be delayed.

Line 18 AMENDED RETURN ONLY.

Enter the amount of any overpayment previously refunded or credited from your original return.

Line 19 TOTAL PAYMENTS AND CREDITS.

Line 17 minus line 18.

Line 20 BALANCE OF TAX DUE.

If line 12 is greater than line 19, there is a balance of tax due. Subtract line 19 from line 12 and enter the result here.

Line 21 PENALTY DUE.

If line 20 is greater than $600, you may be subject to a penalty for underpayment of tax. The penalty is computed separately for each installment due date. Therefore, you may owe the penalty for an earlier due date even if you paid enough tax later to make up the underpayment. This is true even if you are due a refund when you file your tax return. However, you may be able to reduce or eliminate the penalty by using the annualized income installment method. Check the box on this line if you are requesting a Waiver of Penalty or are enclosing the Annualized Income Worksheet. See page 35 for additional information.

Line 22. BALANCE DUE THE STATE.

Add lines 20 and 21 and enter the result on this line. Write your social security number and “2008 Form IT-140” on your check or money order. The Tax Department may convert your check into an electronic transaction. Receipt of your check is considered your authorization for the Tax Department to convert your check into an ACH Debit entry (electronic withdrawal) to your bank account. Your check information will be captured and reported on your bank statement.

Line 23. OVERPAYMENT.

If line 19 is greater than line 12, there is an overpayment. Subtract line 12 from line 19 and enter the result here. If you have a penalty due shown on line 21, your penalty will reduce the amount of the overpayment.

Line 24 AMOUNT TO BE CREDITED TO YOUR 2009 ESTIMATED TAX ACCOUNT.

Enter the amount (all or part) of your overpayment you wish to have credited to your 2009 Estimated Tax account.

Line 25 THE WEST VIRGINIA CHILDREN’S TRUST FUND

funds community projects that keep children free from abuse and neglect. Examples include public awareness activities, school-based programs, programs for new parents and family resource centers.

If you (and your spouse) wish to make a contribution, enter the total amount of your contribution on line 25. Your overpayment will be reduced or your payment increased by this amount. If you do not have an overpayment and want to make a contribution, a check or money order for tax due plus the desired contribution (line 22 plus line 25) must be made payable to the West Virginia State Tax Department and enclosed with your return.

To learn more about the WV Children’s Trust Fund or to make a direct contribution, visit the website http://wvctf.org or write to West Virginia Children’s Trust Fund, P.O. Box 5424, Charleston, West Virginia 25361 or call (304) 558-4637.

Donations made to the West Virginia Children’s Trust Fund are tax deductible on your federal income tax return as an itemized deduction.

Line 26 DEDUCTIONS FROM OVERPAYMENT.

Add lines 24 and 25. This amount will be subtracted from your overpayment to determine your refund.

Line 27 REFUND.

Subtract line 26 from line 23 and enter the result here. This is the amount of your refund. To receive a refund of $2 or less, you must enclose a signed statement with your return requesting that the refund be sent to you.

 

West Virginia Tax Help Links