West Virginia Other Deductions

INTEREST OR DIVIDENDS ON U.S. OBLIGATIONS. Enter the total income on obligations of the United States and its possessions and bonds or securities from any United States authority, commission or instrumentality that are included in your federal adjusted gross income but exempt from state income tax under federal law. This will include United States Savings Bonds and federal interest dividends paid to shareholders of a regulated investment company under Section 852 of the IRS Code. Include on this line interest earned on West Virginia bonds which are subject to federal tax but exempt from state tax under West Virginia law.

ANY WEST VIRGINIA STATE OR LOCAL POLICE, DEPUTY SHERIFFS’ OR FIREMEN’S RETIREMENT. Enter the taxable amount of retirement income reported on your federal return which was received from any West Virginia state or local police, deputy sheriffs’ or firemen’s retirement system, regardless of your age. This is the taxable amount of retirement income received from these sources including any survivorship annuities. Subtractions for retirement received from West Virginia Public Employee's Retirement System is limited to $2,000 and must be claimed on line 36. 1099-R must be included with return. If you are a retired federal law enforcement officer or fireman, at least one of the following documents must be submitted as supporting documentation of your eligibility for this reduction; your Summary of Federal Service from FERS; federal form RI 20-124; your Department of Justice ID card issued to you upon your retirement.

WEST VIRGINIA TEACHERS’ RETIREMENT AND WEST VIRGINIA PUBLIC EMPLOYEES’ RETIREMENT. Regardless of age, enter the taxable amount of retirement income (not to exceed $2,000) reported on your federal return received from The West Virginia Teachers’ Retirement System and/or The West Virginia Public Employees’ Retirement System. Do not enter more than $2,000. 1099-R must be included with return.

FEDERAL RETIREMENT. Regardless of age, enter the taxable amount of retirement income (not to exceed $2,000) reported on your federal return received from Federal Retirement. Do not enter more than $2,000. 1099-R must be included with return. COMBINED AMOUNTS OF LINES 36 AND 37 MUST NOT EXCEED $2,000.

MILITARY RETIREMENT. Enter the taxable amount reported on your federal return of military retirement income, including survivorship annuities, from the regular Armed Forces, Reserves, and National Guard. 1099-R must be included with return, even if no withholding is to be reported. LINE 39 ACTIVE DUTY MILITARY PAY. Military income received while you were a member of the National Guard or Armed Forces Reserves called to active duty in support of the contingency operation as defined in Executive Order 13223 as part of Operation Noble Eagle, Operation Enduring Freedom, Operation Iraqi Freedom, and Operation New Dawn, Operation Inherent Resolve, as well as any other current or future military operations deemed to be part of the Overseas Contingency Operation (OCO). The President’s memorandum applies to any West Virginia National Guard and Reserve service members called to active duty in support of the OCO, regardless of whether they are deployed overseas or stateside. Military orders and W-2 must be included with your return.

ACTIVE MILITARY SEPARATION. If you have separated from military service, enter the amount of active duty pay that you received, provided that you were on active duty for thirty continuous days prior to separation. Military orders, DD214, and W-2 must be included with your return.

REFUNDS OF STATE AND LOCAL INCOME TAXES. Enter the amount reported on your federal return only. Only refunds included in your federal adjusted gross income qualify for this modification.

CONTRIBUTIONS TO THE WEST VIRGINIA PREPAID TUITION TRUST/ WEST VIRGINIA SAVINGS PLAN TRUST. Enter any payments paid to the prepaid tuition trust fund/savings plan trust, but only to the extent the payments have not been previously allowed as a deduction when arriving at your federal adjusted gross income. Year-end contribution statement must be submitted to support this deduction.

RAILROAD RETIREMENT. Enter the amount(s) of income received from the United States Railroad Retirement Board including unemployment compensation, disability and sick pay that is included in your federal adjusted gross income. West Virginia does not impose tax on this income. 1099-RRB or W-2 from United States Railroad Retirement Board must be included with return. Social Security benefits that are taxable on your federal return are also taxable to West Virginia and should NOT be included on this line.

LONG-TERM CARE INSURANCE, IRC 1341 REPAYMENTS, AND AUTISM MODIFICATION. Enter the amount of long-term care insurance premiums, money paid back under IRC 1341, or any qualifying contribution to a qualified trust maintained for the benefit of a child with autism (see instructions on page 15). Mark the appropriate box. Supporting documentation must be provided.

QUALIFIED OPPORTUNITY ZONE BUSINESS INCOME You must include a copy of IRS 8996.

WEST VIRGINIA “ E-Z PASS” DEDUCTION. The one time fee is not included in the “E-Z Pass” Deduction. Enter the amount, not less than $25 and not to exceed $1,200, of any payment for amounts expended for tolls paid electronically through use of the West Virginia Parkways Authority’s E-Z Pass for non-commercial passes for travel on toll roads in West Virginia, not including amounts refunded or reimbursed by an employer. Any amount of qualified tolls paid and eligible for this decreasing modification and not used in the taxable year when paid shall carry forward for up to three (3) years subsequent to the taxable year. Qualified toll payments not used by the end of the carry forward period shall be forfeited. Please note that the transponder number is required to be entered in the designated box on Schedule M, line 46.

SENIOR CITIZEN OR DISABILITY DEDUCTION. Taxpayers MUST be at least age 65 OR certified as permanently and totally disabled during 2019 to receive this deduction. Taxpayers age 65 or older have to enter their year of birth in the space provided and complete boxes (a) through (c) of the table in order to claim the deduction as a Senior Citizen. Joint income must be divided between spouses with regard to their respective percentage of ownership. ONLY THE INCOME OF THE SPOUSE WHO MEETS THE ELIGIBILITY REQUIREMENTS QUALIFIES FOR THE MODIFICATION. See example below on page 21. The Disability Deduction can be claimed by taxpayers under age 65 who have been medically certified as unable to engage in any substantial gainful activity due to physical or mental impairment. IF 2019 is the first year of a medically certified disability, you MUST enclose a 2019 West Virginia Schedule H or a copy of Federal Schedule R and enter 2019 as the year the disability began in the space provided. IF the disability deduction has been claimed in prior years AND documentation has been submitted with prior claims, then only the year that the disability began, entered in the space provided, is needed to claim the deduction. The Surviving Spouse of a deceased taxpayer may also qualify for a similar modification. See line 49 instructions for more information. BOX (a) Enter all income (for each spouse, if joint return) that has not been reported on lines 39 through 46 of Schedule M, not to exceed $8,000. BOX (b) Add lines 34 through 38 for each spouse and enter on this line. BOX (c) Subtract BOX (b) from BOX (a) for each spouse. If BOX (b) is larger than BOX(a), enter zero on BOX(c).

SURVIVING SPOUSE DEDUCTION. The surviving spouse may claim a one-time subtraction from his/her income of up to $8,000 for the taxable year following the year of the spouse’s death if all of the following conditions are met: • The decedent was 65 years of age or older OR was certified as permanently and totally disabled prior to his death. • The surviving spouse did not remarry before the end of the taxable year. • The total deductions from income shown on lines 34 through 38 and line 47 of Schedule M are less than $8,000. This modification is claimed on line 49 of Schedule M. The total of lines 47 and 49 cannot exceed $8,000.