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

Line 39(d). Subtract line 39(c) from line 39(b) for

Line 40. INCOME RECEIVED BY SURVIVING

total deductions from income shown on lines

each spouse. If line 39(c) is larger than line 39(b),

SPOUSE. The surviving spouse, regardless of

30 through 33 and 39 are $8,000 or more, you

enter zero on line 39(d).

age, of a decedent who had attained the age of

are not eligible for an additional modification

65 OR was certified as permanently and totally

on line 40.

Compare the amounts shown on lines 39(a) and

disabled, prior to his/her death, may take a modi-

39(d) for each spouse. Enter the smaller of these

Line 41. Add lines 30 through 40 for each col-

fication if you receive taxable income from any

two amounts on line 39 for that spouse. ONLY

umn and enter the results here.

source not included on line 39. This is a one-time

THE INCOME OF THE SPOUSE WHO MEETS

Line 42. TOTAL SUBTRACTIONS. Combine

modification and must be claimed on the annual

THE ELIGIBILITY REQUIREMENTS QUALIFIES

Columns A and B from line 41 and enter the re-

income tax return in the year following the year in

FOR THE REDUCING INCOME MODIFICATION.

sult here and on line 3 of Form IT-140.

which the death of the spouse occurred. If the

If one spouse only has $4,000 in income, then

the maximum deduction for that spouse is $4,000.

EXAMPLE OF SENIOR CITIZEN DEDUCTION CALCULATION

John Doe, age 69, and Mary Doe, age 65, file a joint tax return. They received the following income in 2005.

John

Mary

West Virginia Police Retirement

7,000

IRA Distributions

4,000

1,000

Wages and Salaries

10,000

Interest

1,500

US Savings Bond Interest (jointly held)

500

Total Income

13,000

Their federal adjusted gross income which they report on line 1 of their West Virginia Form IT-140 is $26,000. Property which John and Mary hold jointly (i.e. savings

account) is split between them according to their percentage of ownership. In this case, each taxpayer owned 50% of the joint income.

Mr. Doe’s total income is $13,000. However, he reported his police pension on line 31 and his share of their joint savings bond interest on line 30 of Schedule M.

Therefore, he reports $5,500 on line 39(a) of Schedule M ($13,000 minus $7,000 minus $500).

Mrs. Doe’s total income is also $13,000. She enters $12,500 on line 39(a) of Schedule M ($13,000 less her share of their jointly-held savings bond interest

reported ($500) on line 30).

Mr. Doe enters $7,500 on line 39(c) of Schedule M ($500 from line 30 plus $7,000 from line 31). He then subtracts line 39(c) from line 39(b) and enters the

result ($500) on line 39(d).

Mrs. Doe enters the $500 from line 30 on line 39(c). She then subtracts line 39(c) from line 39(b) and enters the result ($7,500) on line 39(d).

Mr. and Mrs. Doe are each allowed the smaller of the amounts shown on line 39(a) and 39(d) as their senior citizen deduction. Therefore, Mr. Doe enters $500

on line 39 and Mrs. Doe enters $7,500 on line 39.

John

Mary

5.500

12,500

39(a)

8,000

39(b)

39(c)

7,500

500

39(d)

500

7,500

INSTRUCTIONS FOR NONRESIDENTS

Except for residents of those states practicing

West Virginia source income of a nonresident

File the Special Nonresident Return (Form

reciprocity with West Virginia, nonresident indi-

does not include the following income even if it

IT-140NRS) if:

was included in your federal adjusted gross in-

viduals who have West Virginia source income

you were not a part-year resident of West

for the taxable year must file a return. A return

come:

Virginia; and

must also be filed by any nonresident individual

annuities and pensions;

you were a resident of Kentucky, Mary-

entitled to obtain a refund of West Virginia tax

interest, dividends or gains from the

land, Ohio, Pennsylvania, or Virginia for

withheld or West Virginia estimated tax paid.

sale or exchange of intangible personal

the entire taxable year; and

property, unless they are part of the in-

West Virginia Source Income

your only source of West Virginia income

come you received from carrying on a

is from wages and salaries.

The West Virginia source income of a nonresi-

business, trade, profession or occupa-

dent is derived from the following sources included

tion in West Virginia.

in your federal adjusted gross income. This in-

Nonresidents Electing to file on a Com-

File the Nonresident/Part-Year Resident Return

cludes income from:

posite Return

(Form IT-140NR/PY) if:

real or tangible personal property located

Nonresident individuals who are partners in a part-

you were a resident of West Virginia for a

in West Virginia;

nership, shareholders in an S-corporation, or ben-

part of the taxable year (Part-Year Resi-

eficiaries of an estate or trust, that derives income

employee services performed in West Vir-

dent); or

from West Virginia sources may elect to file a

ginia;

you were not a resident of West Virginia

nonresident composite income tax return. A $50

a business, trade, profession or occupa-

at any time during 2005, but your federal

processing fee is required for each composite re-

tion carried on in West Virginia;

adjusted gross income includes income

turn filed. Form IT-140NRC must be used to file

from West Virginia sources (Nonresident);

a corporation in which you are a share

a composite return.

holder which makes election under fed-

If a separate return is filed, the nonresident must

eral tax law to be taxed as an S-corpora-

you were a domiciliary resident of West

include in that return the West Virginia income

tion;

Virginia but you (a) maintained no perma-

derived from the pass-through entity filing the

nent place of abode in West Virginia,

your distributive share of West Virginia

composite return, and may claim credit for his or

(b) spent no more than 30 days in West

partnership income or gain; and

her share of West Virginia income tax remitted

Virginia during 2005, and (c) maintained

with the composite return.

your share of West Virginia estate or trust

a permanent place of abode outside West

income or gain.

Virginia (Nonresident).

Personal Income Tax Forms And Instructions Resident & Nonresident/part-Year Resident - 2005 Page 8

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