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West Virginia Additions

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West Virginia Additions

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Modifications Increasing Federal Adjusted Gross Income

 

There is added to federal adjusted gross income, unless already included therein, the amounts of the following items:

 

(1) Interest income paid by a government entity other than a federal entity.

 

Interest income on obligations of any state other than this state or of a political subdivision of any other state unless created by compact or agreement to which this state is a party. W. Va. Code § 11-21-12(b)(1).

 

(2) Taxable Federal government interest income.

 

Interest or dividend income on obligations or securities of any authority, commission, or instrumentality of the United States, which the laws of the United States exempt from federal income tax but not from state income taxes. W. Va. Code § 11-21-12(b)(2).

 

(3) Any federal decreasing modification not allowed for West Virginia Personal Income Tax purposes.

 

Any deduction allowed when determining federal adjusted gross income for federal income tax purposes for the taxable year that is not allowed as a deduction under the West Virginia Personal Income Tax for the taxable year. W. Va. Code § 11-21-12(b)(3).

 

(4) Interest paid to carry tax exempt obligations.

 

Interest on indebtedness incurred or continued to purchase or carry obligations or securities, the income from which is exempt from tax under the West Virginia Personal Income Tax , to the extent deductible in determining federal adjusted gross income. W. Va. Code § 11-21-12(b)(4).

 

(5) Lump sum pension distributions.

 

The amount of a lump sum distribution for which the taxpayer has elected under Section 402(e) of the Internal Revenue Code of 1986, as amended, to be separately taxed for federal income tax purposes. W. Va. Code § 11-21-12(b)(6).

 

(6) Misuse of medical savings account funds.

 

Amounts withdrawn from a medical savings account established by or for an individual under Section 33-15-20 or Section 33-15-16 of the West Virginia Code that are used for a purpose other than payment of “medical expenses,” as defined in those sections. W. Va. Code § 11-21-12(b)(7).

 

(7) Misuse of 529 college savings funds.

 

Unless already included in federal adjusted gross income for the taxable year, there shall be added to federal adjusted gross income any amount previously deducted from federal adjusted gross income under Section 11-21-12a for amounts deposited into a prepaid tuition contract or other college savings plan administered by the board of trustees of the college prepaid tuition and savings program, pursuant to article 30, chapter 18 of the Code, and subsequently withdrawn from the prepaid tuition contract or other college savings plan, and used for purposes other than those qualified expenses authorized by I.R.C. §529. W. Va. Code § 11-21-12(f).

 

(8) IRC § 199 domestic manufacturing deduction modification.

 

Unless already included in federal adjusted gross income for the taxable year, there shall be added to federal taxable income the amount deducted under IRC § 199, when determining federal adjusted gross income for the taxable year for federal income tax purposes. Section 11-21-12g(a).

 

(9) Distributive share add back for IRC § 199 deduction.

 

When taxpayer's federal adjusted gross income includes distributive share of income, gain or loss of a partnership, limited liability company, electing small business corporation, or other entity treated as a partnership for federal income tax purposes, and when taxpayer's distributive share for the taxable year includes a deduction, or portion of a deduction computed under IRC § 199 for the taxable year, then in addition to amounts added to federal adjusted gross income, unless already included therein, the amount computed under IRC § 199 that flows through to the taxpayer for federal income tax purposes for the taxable year shall be added to federal adjusted gross income.

 

Taxpayer must file with the annual West Virginia Personal Income Tax Return a copy of all schedules K-1 received showing allocation of a Section 199 deduction and such other information as the Tax Commissioner may require.

 

 

 

 

 


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Article Details
Views: 1047 Created on: Jun 15, 2013
Date updated: Jan 08, 2019
Posted in: States, West Virginia

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