Personal Income Tax Forms And Instructions Resident & Nonresident/part-Year Resident

INSTRUCTIONS FOR SCHEDULE E

When computing the Schedule E credit, do not

A. The credit cannot exceed the amount of

Subject to certain limitations, a West Virginia resi-

use the amount of tax that may have been with-

tax actually payable to the other state on

dent may be allowed a credit against his/her West

held from your wages. This is not the actual tax

income also subject to West Virginia tax.

Virginia income tax for any income tax imposed for

paid to the other state.

This is the actual amount of income tax

the taxable year by another state, on income de-

computed on the nonresident return filed

Failure to attach a copy of the other state’s re-

rived from sources within the other state.

with the other state.

turn will result in the claimed credit being disal-

Part-year residents may only claim credit for taxes

lowed. This credit is not allowed in any case for

B. The credit cannot exceed the percentage

paid to another state during their period of West

income tax imposed by a city, township, borough,

of the West Virginia tax determined by

Virginia residency.

or any political subdivision of a state.

dividing the portion of the taxpayer’s

West Virginia income subject to taxation

Nonresidents will not be allowed a Schedule E credit

A separate Schedule E must be completed

in another state by the total amount of

under any circumstances. The purpose of the credit

and attached for each state for which you are

the taxpayer’s West Virginia income.

is to prevent dual taxation of such income.

claiming a credit.

C. The credit cannot reduce the West Vir-

The amount of a Schedule E credit is subject to the

West Virginia Resident

ginia tax due to an amount less than

following limitations:

Lines 43 through 53. Enter the appropriate in-

would have been due if the income sub-

formation on the proper lines of Schedule E

ject to taxation by the other state was

(page 14).

excluded from the taxpayer’s West Vir-

ginia income.

You may claim credit on your West Virginia Resident Income Tax Return for state income tax paid, as a nonresident, to the following states:

Michigan

Indiana

New Hampshire

Oklahoma

Alabama

Delaware

Minnesota

Oregon

Iowa

New Jersey

Arizona

District of Columbia

Rhode Island

Mississippi

Kansas

New Mexico

Arkansas

Georgia

South Carolina

Missouri

Louisiana

New York

California

Hawaii

Utah

Montana

Maine

North Carolina

Colorado

Idaho

Vermont

Nebraska

North Dakota

Massachusetts

Connecticut

Illinois

Wisconsin

***NOTE: THE ABOVE LIST IS SUBJECT TO CHANGE AT ANY TIME***

West Virginia Part-Year Resident

Column B of Schedule A which were derived

Determine the income percentage by

Enter the appropriate information on the proper

lines of Schedule E (page 19).

from the state named on line 72.

dividing line 77 by your federal ad-

justed gross income.

Line 75. Enter the amount shown on Schedule

Line 72. Enter the tax imposed by the state of

A, line 51.

Multiply tentative tax by the income

nonresidence on income also taxed by this state.

percentage to arrive at the alternative

Do not use the amount of any tax which may

Line 76. Limitation of Credit. Multiply line 73

income tax.

have been withheld from your wages; this does

by line 74 and divide the result by line 75; enter

not represent the actual tax paid to the other

Line 79. Limitation of Credit. Subtract line 78

the result on line 76.

state. Do not include the amount of any inter-

from line 73.

est, additions to tax or other penalty which may

Line 77. Alternative West Virginia Taxable

have been paid with respect to such tax. Be

Line 80. Maximum Credit. Subtract line 15 of

Income. Subtract line 74 from line 75.

sure to enter the name of the state for which you

Form IT-140NR/PY from line 73 and enter the

are claiming credit on the line provided.

result here.

Line 78. Alternative West Virginia Income Tax.

Must be calculated as follows:

Line 73. Enter the amount shown on line 11 of

Line 81. Total Credit (the smallest of lines

Form IT-140NR/PY.

Calculate the tentative tax (see the instruc-

72, 73, 76, 79 or 80). Enter amount here and on

tions for line 9 on page 10).

line 16 of Form IT-140NR/PY.

Line 74. Enter the total of all items listed in

SPECIAL INSTRUCTIONS FOR THE FOLLOWING STATES:

Kentucky

Maryland

Ohio

Pennsylvania

Virginia

of Pennsylvania or Virginia by completing

KENTUCKY, MARYLAND OR OHIO. If your in-

any Maryland resident who works for a West Vir-

Schedule E and attaching a copy of that state’s

come during 2005 was from wages and/or sala-

ginia state government agency. For further infor-

return, including a statement if you are claiming

ries only, you may not claim a Schedule E credit.

mation, contact the personnel office of the agency

a Schedule E credit because you were also taxed

In order to receive a refund of the erroneously

for which you are employed.

as a resident. You should also attach a state-

withheld tax, you must file a return with the state

PENNSYLVANIA OR VIRGINIA. If your income

ment explaining the source of income for which

in which taxes were withheld. If you had income

during 2005 was from wages and/or salaries only,

the credit is claimed.

from a source other than wages and/or salaries,

you may not claim a Schedule E credit. In order

you are allowed a credit for income taxes paid

SPECIAL NOTE: You may be relieved from

to receive a refund of the erroneously withheld

by completing Schedule E and attaching a copy

having another state’s income tax withheld

tax, you must file a return with these states. If

of your return. You should also attach a state-

you spent more than 183 days in one of these

from your wages. Contact your employer or

ment explaining the source of income for which

states and are considered an actual resident for

the other state’s taxing authority for additional

the credit is claimed.

tax purposes, or, if you had income from a source

information.

NOTE. The State of West Virginia is now required

other than wages and/or salaries, you are allowed

to withhold Maryland state tax from the wages of

credit for income taxes paid to the Commonwealth

Personal Income Tax Forms And Instructions Resident & Nonresident/part-Year Resident - 2005 Page 20

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