FTC-1: Family Tax Credit Schedule (2024)
West Virginia · WV Tax Division · Used for tax years 2024
West Virginia Schedule FTC-1 calculates the 2024 Family Tax Credit, which may reduce or eliminate personal income tax for certain individuals or families. It uses modified federal adjusted gross income, family size, and income tax due to determine the credit.
Who files this form
Complete Schedule FTC-1 and attach it to Form IT-140 to determine eligibility for and claim the 2024 West Virginia Family Tax Credit. The credit may reduce or eliminate West Virginia personal income tax, depending on income and family size.
You cannot claim this credit if you:
- Claim zero exemptions on your income tax return.
- Pay the federal alternative minimum tax.
What you'll need
Have these forms and tables available to complete Schedule FTC-1:
- Form IT-140: You need amounts from lines 1, 2, and 8, plus the total exemptions in boxes a, b, and c.
- Federal Form 1040: You need any reported tax-exempt interest that is not already included on line 2 of Form IT-140.
- Family Tax Credit tables on page 12: Use these to find the percentage for your family size and modified federal adjusted gross income. If married filing separately, use Table 2.
- Form IT-140 RECAP: Enter the calculated credit on line 2.
How to file
Complete Schedule FTC-1 and attach it to Form IT-140. The form states that the credit will be disallowed if the schedule is not enclosed.
Enter the credit calculated on Schedule FTC-1, line 8, on line 2 of Form IT-140 RECAP.
Common mistakes
- Leaving out Schedule FTC-1: The credit will be disallowed if the schedule is not enclosed with Form IT-140.
- Using the wrong table when married filing separately: Use Family Tax Credit Table 2.
- Using a family size above 8 for the table lookup: If line 5 shows more than 8 exemptions, use the table for a family size of 8.
- Counting tax-exempt interest twice: On line 3, include only tax-exempt interest from Federal Form 1040 that is not already included on line 2 of Form IT-140.
- Claiming the credit when excluded: You cannot claim it if you have zero exemptions or pay the federal alternative minimum tax.
Questions people ask
What does the Family Tax Credit do?
It may reduce or eliminate your West Virginia personal income tax. Eligibility depends on income limitations and family size.
How do I calculate modified federal adjusted gross income for this credit?
Add Schedule FTC-1 lines 1 through 3: federal adjusted gross income, increasing West Virginia modifications, and tax-exempt interest not already included in those modifications. Enter the total on line 4.
How is my family size determined?
Add the exemptions claimed in boxes a, b, and c of Form IT-140 and enter the total on line 5. If the total is greater than 8, use the credit table for a family size of 8.
Where do I find my credit percentage?
Use the tables on page 12 to find the percentage for your family size and modified federal adjusted gross income. If you are married filing separately, use Table 2.
How do I calculate and report the credit?
Enter the income tax due from Form IT-140, line 8, on Schedule FTC-1, line 7. Multiply it by the percentage on Schedule FTC-1, line 6. Enter the result on line 8 and on Form IT-140 RECAP, line 2.