Personal Income Tax Tips from the West Virginia State Tax Department

Each week between now and April 15, 2009, the West Virginia State Tax Department will issue a personal income tax tip of the week. Please share the following tips(week 1 and week 2) for your own knowledge and that of your colleagues, associates, members, and others you think will benefit from such correspondence.

Personal Income Tax Tip #1: The Personal Income Tax and Senior Citizens

West Virginia’s senior citizens’ personal income tax modifications and credits differ from other West Virginia tax modifications.

West Virginia taxpayers must file an annual personal income tax return by April 15th each year for the preceding year. You must file a State income tax return: if you were required to file a federal return; if you were not required to file a federal return, but your West Virginia adjusted gross income is greater than your personal exemption allowance; or to obtain a refund. You may be required to file a return even if you do not owe any tax.

A personal exemption of $2,000 is allowed for each person. The number of your West Virginia personal exemptions are the same as your federal exemptions. A surviving spouse is allowed one additional $2,000 exemption for two taxable years following the year of death of his or her spouse.

Computation of West Virginia taxable income begins with federal adjusted gross income to which specific increases and/or decreases are made. Each taxpayer who is (a) age 65 or older during any part of the taxable year; or (b) permanently and totally disabled may deduct from their federal adjusted gross income up to $8,000 of his/her income received from any source. If a joint return is filed by two qualifying individuals, up to $8,000 of income received by each individual may be deducted.

An individual, regardless of age, may deduct up to $2,000 of benefits received from West Virginia Teachers Retirement System, West Virginia Public Employees Retirement System, Military Retirement and Federal Retirement Systems.

The total amount of any benefit (including survivorship annuities) received from any West Virginia state or local police, deputy sheriff’s or firemen’s retirement system may be deducted.

Military retirees are able to take an additional decreasing modification for military retirement up to $20,000.

Please be aware that social security income is taxable for West Virginia income tax purposes to the extent that the income is includible in your federal adjusted gross income.

Seniors that are eligible for the Homestead Exemption Program administered through their county may be entitled to claim a refundable income tax credit. You should review the information on page 41 of the Personal Income Tax Booklet and publication TSD-411.

For additional information on tax credits and personal income tax tips for senior citizens, please visit our TSD-413 publication located our web site at http://www.wvtax.gov/.

Tax Tip #2: Who Must File

On or before April 15th of each year, West Virginia taxpayers must file a personal income tax return with the West Virginia State Tax Department. However, the taxpayer required to file a return does not necessarily have to reside in West Virginia. Some taxpayers may not be required to file a federal personal income tax return, yet the taxpayer must file a West Virginia personal income tax return if the taxpayer meets certain criteria.

To help identify who must file a personal income tax return in West Virginia, here is a brief but thorough explanation.

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 of West Virginia but you
(a) maintained no permanent residence or dwelling place in West Virginia,
(b) spent less than 30 days in West Virginia during 2008, and
(c) maintained a permanent dwelling place or residence 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, and claim the 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 and you wish to claim the refund you must file a return. To claim a senior citizen tax credit, you must file a state personal income tax return.


For additional information on tax credits and personal income tax tips, please visit our web site at http://www.wvtax.gov/.