Schedule B: Adjustments to Federal Taxable Income (2024)
West Virginia · WV Tax Division · Used for tax years 2024
West Virginia Schedule B (Form CIT-120) reports adjustments that increase or decrease federal taxable income for 2024. It totals these adjustments for entry on Schedule 1 or Schedule 2.
What you'll need
Depending on which adjustments apply, have these available:
- Your federal return, to identify the income, deductions, taxes and expenses referenced on Schedule B.
- IRS Form 8996, which must be included for Qualified Opportunity Zone business income reported on line 22.
- Schedule B-1, if reporting its line 9 allowance on Schedule B, line 24.
Common mistakes
- Using the wrong lines for pollution control facilities. Lines 4 and 20 are for wholly West Virginia corporations only. Multistate corporations must use CIT-120APT, Schedule A-2, line 11 for federal depreciation/amortization and line 10 for facility costs.
- Leaving out descriptions. Provide a brief description for other increasing adjustments on line 11 and other decreasing adjustments on line 23.
- Omitting IRS Form 8996. Line 22 says to include it when reporting Qualified Opportunity Zone business income.
- Not carrying totals to the applicable schedule. Enter line 12's total on Schedule 1, line 2 or Schedule 2, line 2. Enter line 25's total on Schedule 1, line 3 or Schedule 2, line 3.
Questions people ask
What does Schedule B calculate?
Schedule B of Form CIT-120 lists adjustments that increase or decrease federal taxable income for tax year 2024.
How do I calculate the adjustment totals?
Add lines 1 through 11 and enter the total increasing adjustments on line 12. Add lines 13 through 24 and enter the total decreasing adjustments on line 25.
Where does the federal net operating loss deduction go?
Report it on line 6 as an adjustment increasing federal taxable income.
How does claiming the West Virginia Neighborhood Investment Programs Tax Credit affect Schedule B?
If claiming that credit, report the federal deduction for charitable contributions to Neighborhood Investment Programs on line 7 as an increasing adjustment.