IT-140 Schedule E: Credit for Income Tax Paid to Another State (2024)
West Virginia · WV Tax Division · Used for tax years 2024
West Virginia Form IT-140 Schedule E calculates the 2024 credit for income tax paid to another state. It reports the other state's income tax, income included in West Virginia total income, and limits on the credit. A separate Schedule E is required for each state for which you c
Who files this form
Complete Schedule E if you are claiming a credit for income tax paid to another state. You must complete a separate Schedule E for each state for which you claim credit.
- Residents: The form provides a resident status box for claiming the credit.
- Part-year residents: You cannot claim the credit unless the other state's income is included in West Virginia taxable income on Schedule A. Check the box describing your move and enter your move date.
- Nonresidents who did not maintain a residence in West Virginia during the taxable year: No credit is allowed.
What you'll need
Have these records available to complete Schedule E:
- Your 2024 income tax return for the other state, showing the income tax computed, not just tax withheld.
- Your West Virginia Form IT-140, including the income and tax amounts referenced on Schedule E.
- Schedule A if you are a part-year resident.
- Your Tax Credit Recap Schedule and the tax rate schedule used to calculate the alternative West Virginia tax.
Keep any information or withholding statements provided by the other state tax return in your files. In lieu of a return, the form allows you to keep an information statement and withholding statements provided by a partnership, limited liability company, or S corporation.
Common mistakes
- Combining multiple states on one schedule: Complete a separate Schedule E for each state for which you claim credit.
- Entering withholding on line 1: Report the income tax computed on your 2024 return for the other state, not tax withheld.
- Claiming credit for excluded taxes: No credit is allowed for income tax imposed by a city, township, borough, another political subdivision of a state, or another country.
- Claiming a part-year resident credit without including the income: The other state's income must be included in West Virginia taxable income on Schedule A.
- Failing to keep records: Maintain the information and withholding statements specified on the form in your files.
Questions people ask
Do I need a separate Schedule E for each state?
Yes. Complete a separate schedule for each state for which you claim credit.
Can a part-year resident claim this credit?
Only if the other state's income is included in West Virginia taxable income on Schedule A. Check the box describing your situation and enter the date of your move.
Can I claim credit for income tax paid to a city or another country?
No. The form excludes income taxes imposed by cities, townships, boroughs, other political subdivisions of a state, and other countries.
How do I determine the total credit and where do I enter it?
Line 10 is the smallest amount from lines 1, 2, 5, 8, or 9. Enter that amount on Schedule E, line 10, and on line 1 of the Tax Credit Recap Schedule.