FTC-1: Family Tax Credit Schedule (2025)
West Virginia · WV Tax Division · Used for tax years 2025
Schedule FTC-1 calculates the 2025 West Virginia 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 whether you qualify for the 2025 Family Tax Credit and to claim it. The credit may reduce or eliminate your West Virginia personal income tax, depending on your income and family size.
You cannot claim the credit if you:
- Claim zero exemptions on your income tax return.
- Pay the federal alternative minimum tax.
What you'll need
Have these available to complete the schedule:
- Form IT-140: You need amounts from lines 1, 2, and 8, plus the exemptions claimed in boxes a, b, and c.
- Your 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 you are married filing separately, use Table 2.
How to file
- On lines 1 through 3, enter your federal adjusted gross income, increasing West Virginia modifications, and tax-exempt interest not already included in those modifications.
- Add lines 1 through 3 and enter the total on line 4. This is your modified federal adjusted gross income for the credit.
- On line 5, enter the total exemptions from Form IT-140, boxes a, b, and c. This is your family size for the credit.
- Use the tables on page 12 to find your credit percentage and enter it on line 6. Use Table 2 if married filing separately. If your family size is greater than 8, use the table for a family size of 8.
- Enter the income tax due from Form IT-140, line 8, on line 7 of the schedule.
- Multiply line 7 by the percentage on line 6. Enter the credit on line 8 of the schedule and line 2 of Form IT-140 RECAP.
- Attach Schedule FTC-1 to Form IT-140. The form states that the credit will be disallowed if the schedule is not enclosed.
Common mistakes
- Leaving out Schedule FTC-1: The credit will be disallowed if the schedule is not enclosed with Form IT-140.
- Claiming the credit when ineligible: You cannot claim it if you have zero exemptions or pay the federal alternative minimum tax.
- Using the wrong table: Married filing separately taxpayers must use Family Tax Credit Table 2.
- Counting tax-exempt interest twice: On line 3, include only tax-exempt interest that is not already included on line 2 of Form IT-140.
- Using a family size above 8: If line 5 shows more than 8 exemptions, use the table for a family size of 8.
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 determine my family size?
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.
What income does the schedule use?
It uses modified federal adjusted gross income: your federal adjusted gross income plus increasing West Virginia modifications and tax-exempt interest not already included in those modifications.
Which table do I use if I am married filing separately?
Use Family Tax Credit Table 2.
Where do I enter the calculated credit?
Enter it on line 8 of Schedule FTC-1 and line 2 of Form IT-140 RECAP. Attach the schedule to Form IT-140.