JSP-1: Jumpstart Savings Program Credit for Employer Contribution (Revision 2022-08)
West Virginia · WV Tax Division · Used for tax years 2026
West Virginia Schedule JSP-1 calculates the nonrefundable tax credit for employer matching contributions to employees’ Jumpstart Savings Accounts. It reports contributions, amounts allowed as federal deductions, and the credit claimed against corporate net income, personal income
Who files this form
Schedule JSP-1 is for employers claiming a credit for matching contributions to employees’ West Virginia Jumpstart Savings Accounts.
The form provides credit calculations for corporations claiming against Corporation Net Income Tax and for pass-through entities or sole proprietors claiming against Personal or Fiduciary Income Tax.
An employer’s contribution cannot exceed the employee’s contribution for the same year or $5,000 per employee per year. Employers cannot claim the credit for themselves if they are the beneficiary of the account.
What you'll need
- Contribution documentation: The employer must attach documentation verifying the contribution amount. The included instructions also say the employee should submit supporting documentation to the West Virginia Tax Division.
- Payroll deduction details, if applicable: If employees contributed through payroll deductions, provide each employee’s name, Social Security number and total payroll deductions for the year.
- Schedule K-1, for shareholder claims: Provide a copy showing the shareholder’s ordinary income from the business.
- Business and taxpayer information: Have the tax period, business name, FEIN or SSN, business organization type, six-digit NAICS code, and the claiming taxpayer’s name and FEIN or SSN available.
- Calculation information: You will need employee and account counts, contribution amounts, the amount allowed as a federal deduction, and the applicable income and tax liability figures.
Common mistakes
- Saving unused credit for another year: The credit must be used in the tax year the employer contribution was made. It cannot be carried backward or forward. Unused credit is forfeited.
- Claiming the same contribution against more than one tax: The form prohibits claiming the credit against multiple tax types for a single contribution.
- Exceeding contribution limits: Employer contributions cannot exceed the employee’s contribution for the year or $5,000 per employee per year.
- Claiming credit for a deductible amount: The credit is allowed only to the extent the contribution was not allowed as a deduction in arriving at federal adjusted gross income.
- Claiming for your own account: An employer cannot claim the credit if the employer is the account beneficiary.
- Leaving out contribution proof: The form requires employers to attach documentation verifying the contribution amount.
Questions people ask
Is this credit refundable?
No. The included instructions describe it as a non-refundable credit. Any unused credit is forfeited.
How is the available credit calculated?
Subtract line 8, the contribution amount allowable as a federal deduction, from line 7, the contribution amount. Enter the result on line 9.
How much can a corporation claim?
A corporation enters its Corporation Net Income Tax liability on line 10. Its credit on line 11 is the smaller of the available credit on line 9 or the tax liability on line 10.
How is a shareholder’s credit limited?
Line 14 apportions the available credit using the shareholder’s ownership percentage. Line 18 calculates the tax attributable to the qualified business. The credit claimed on line 19 is the smaller of those two amounts.
What income do nonresident and part-year resident filers use on line 15?
These filers must calculate an equivalent taxable income using the calculation instructions included with the form. Full-year residents use West Virginia adjusted gross income.