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

The American Jobs Creation Act

Military Retirement

form will be accepted. West Virginia Substi-

tute W-2 (Form WV/IT-102-1) must be completed

This Act, in part, is a federal tax benefit that

There is an additional modification for the first

in its entirety and attached to your income tax re-

allows a deduction for certain domestic produc-

$20,000 of military retirement income; to the ex-

turn in the same manner as Form W-2. This in-

tion activities. The deduction is attributable to

tent it is included in federal adjusted gross income.

formation may be obtained from your pay stub(s).

the qualifying production activities of a partner-

The federal Form 4852 (Substitute for Form W-2)

ship or S corporation. West Virginia law does

West Virginia College Savings Plan and Pre-

does not provide all the information necessary

not allow this deduction, any amount deducted

paid Tuition Trust Funds

to process your state return. It WILL NOT be

under Section 199 Internal Revenue Code, is

accepted in lieu of Form WV/IT-102-1.

to be reported as an increasing modification on

Taxpayers making payments or contributions to

Schedule M.

programs of the West Virginia Prepaid Tuition

Credit for Estimated Tax

Trust and/or West Virginia Savings Plan Trust,

Persons Permanently and Totally Disabled or

operated under the trade names of SMART529

You must make quarterly estimated tax payments

65 Years of Age and Older

or West Virginia Prepaid College Plan, may be

if your estimated tax liability (your estimated tax

eligible for a modification reducing the federal

reduced by any state tax withheld from your in-

An individual, regardless of age, who was certi-

adjusted gross income. This deduction can only

come) is at least $600, unless that liability is less

fied as being permanently and totally disabled

be claimed in the amount and in the year that the

than ten percent (10%) of your estimated tax. The

during the taxable year, or an individual who at-

contribution is made. The reducing modification

total estimated tax credit to be claimed is the sum

tained the age of 65 before the end of the taxable

may be carried forward for a period not to exceed

of the payments made with the quarterly install-

year may be eligible for certain modifications that

five taxable years beginning in the tax year in which

ments for taxable year 2005, any overpayments

will reduce their federal adjusted gross income

the payment was made. For more information

applied from your 2004 personal income tax re-

for West Virginia income tax purposes up to

regarding participation in this program, contact the

turn, and any payments made with your West

$8,000. See instructions for Schedule M.

SMART529

Service Center at 1-866-574-3542.

Virginia Application for Extension of Time to

File (Schedule L).

Senior Citizens Tax Credit

Members of the Armed Forces

Extension of Time

Low-income taxpayers who are eligible for the

If your legal residence was in West Virginia at the

homestead property tax exemption may be

time you entered military service, assignment to

If you obtain an extension of time to file your fed-

eligible for the Senior Citizens Tax Credit.

duty outside the state does not change your West

eral income tax return, you are automatically al-

Virginia residency status. You must file your re-

lowed the same extension of time to file your West

Credit eligibility is restricted to taxpayers who par-

turn and pay the tax due in the same manner as

Virginia income tax return. You must enter on

ticipate in the Homestead Exemption program,

any other resident individual unless you did not

your return the date to which the extension was

who incur and pay property taxes, and whose fed-

maintain a physical presence in West Virginia for

granted. If a federal extension was granted elec-

eral adjusted gross income is less than 150% of

more than 30 days during the taxable year.

tronically, write “Federal Extension granted” and

federal poverty guidelines.

the confirmation number at the top of the form.

If, during 2005, you did NOT meet this condi-

Enter the extended due date in the appropriate

This maximum federal adjusted gross income level

tion, you are considered to be a West Virginia

box. A copy of federal Schedule 4868 must be

is $14,355 for a single person household plus an

resident for income tax purposes, and must file a

attached to your return. If you need an extension

additional $4,890 for each additional person in

resident return.

of time for West Virginia purposes but not for fed-

your household (e.g., $19,245 for a two-person

eral purposes, or if you expect to owe an addi-

household).

If, during 2005, you did meet this condition and

tional tax due to West Virginia, you must submit a

had income from a West Virginia source, you may

completed Schedule L (Application for Exten-

West Virginia Police, Deputy Sheriff’s or

be required to file an income tax return with West

sion of Time to File) and pay any tax expected

Firemen’s Pension

Virginia as any other nonresident individual, de-

to be due. Refer to Schedule L (page 21) for ad-

pending upon the type of income received.

ditional instructions.

The State of West Virginia does not impose an

income tax on the retirement income received from

A member of the Armed Forces who is domiciled

Penalty for Underpayment of Estimated Tax

any West Virginia state or local police, deputy

outside West Virginia is considered to be a non-

sheriff’s or firemen’s retirement system, including

resident of West Virginia for income tax purposes;

If your return shows a balance due greater than

any survivorship annuities. A full deduction is al-

therefore, his/her military compensation is not tax-

$600, you may be subject to a penalty for not pre-

lowed by completing Schedule M.

able to West Virginia even though he/she is sta-

paying enough personal income tax through with-

tioned in West Virginia and maintains a perma-

holding and quarterly estimated tax payments.

United States Railroad Retirement Income

nent place of abode therein.

Use Form IT-210 to calculate your penalty. If you

do not complete Form IT-210, the West Virginia

The State of West Virginia does not tax this in-

Withholding of West Virginia income tax may not

State Tax Department will calculate the penalty

come. All types of United States Railroad Retire-

apply to payments made by the United States for

for you. You will receive a Notice of Adjustment

ment Board benefits, including unemployment com-

service in the Armed Forces. To keep your tax

for the amount of penalty due.

pensation, disability and sick pay included on the

payments current, you may find it necessary to

federal return should be entered on Schedule M.

make quarterly estimated tax payments using

To avoid future penalties, you may want to in-

Form IT-140ES.

crease your withholding or begin making quarterly

West Virginia Teachers Retirement, West

estimated payments for 2006.

Virginia Public Employees Retirement, Military

Failure to Receive a Withholding Tax Statement

Retirement and Federal Retirement

(W-2)

Penalties and Interest

The modification for pensions and annuities re-

If you fail to receive a withholding tax state-

Interest must be added to any tax due that is not

ceived from the West Virginia Public Employees

ment (Form W-2, W-2G, or 1099) from an em-

paid by the due date of the return even if an ex-

Retirement System, the West Virginia Teachers

ployer by February 15th, you may file your in-

tension of time for filing has been granted. The

Retirement System, Military Retirement and Fed-

come tax return using a substitute form. All

rate of interest will be determined every six

eral Retirement is limited to a maximum of $2,000

efforts to obtain a W-2 statement from the

months under regulations promulgated by the

and should be reported on Schedule M.

payer must be exhausted before a substitute

State Tax Commissioner, the annual rate of in-

terest cannot be less than eight percent (8%).

Personal Income Tax Forms And Instructions Resident & Nonresident/part-Year Resident - 2005 Page 4

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