Schedule J: Military Incentives Credit (Revision 2012-09)
West Virginia · WV Tax Division · Used for tax years 2026
West Virginia Schedule J calculates the Military Incentives Credit for employers who hire qualified veterans and National Guard or Reserve members. It records each employee’s category, employment period, wages and credit amount, with the total carried to the applicable personal i
Who files this form
Schedule J is for employers claiming the West Virginia Military Incentives Credit for hiring eligible economically disadvantaged veterans, disabled veterans, or unemployed members of the West Virginia National Guard or United States Reserve forces.
Eligibility is limited to employers hiring individuals certified as eligible by the West Virginia Division of Employment Security. Generally, the employee must work continuously for at least one year. Limited exceptions allow a proportional credit for shorter employment.
The credit is not available for an employee who displaces an existing employee or for whom the employer receives federal or state job training payments.
What you'll need
Have these documents and details available to complete Schedule J:
- Your West Virginia personal income tax return or corporation net income tax return, for the name and identification number shown on it.
- The “Employer Certification” issued by the West Virginia Department of Employment Security, for the employer name and identification number.
- Each eligible employee’s full name and Social Security number.
- Each employee’s category and, if disabled, the percentage of compensation for service-connected disability determined by the United States Veteran’s Administration.
- Beginning and ending employment dates during the tax year.
- Wages or compensation paid to each eligible employee during the tax year.
Common mistakes
- Entering more than the wage limit. Column 4 must show wages or compensation paid during the taxable year or $5,000, whichever is less.
- Checking more than one category. Check one category for each employee. For a disabled employee, enter the disability percentage.
- Overlooking the employment requirement. Employment of less than one continuous year generally does not qualify unless one of the listed exceptions applies. Where a partial-year credit is allowed, prorate it as instructed.
- Claiming credit for an excluded employee. No credit is available if the employee displaced an existing worker or the employer receives federal or state job training payments for that employee.
- Forgetting to transfer the total. Add column 5, lines a through e, and carry the total to the appropriate line on Form IT-140 or the corporation net income tax return’s Summary Schedule TC.
Questions people ask
How much is the credit for an economically disadvantaged veteran?
The credit is 30% of the first $5,000 in wages or compensation actually paid, up to $1,500 before any required proration.
How is the credit calculated for a disabled veteran?
Multiply the disability percentage by the first $5,000 in wages or compensation actually paid. The listed maximum is $5,000 for a 100% disabled veteran, subject to any required proration.
What is the credit for a National Guard or Reserve member?
The credit is 25% of the first $5,000 in wages or compensation actually paid, up to $1,250 before any required proration.
Can an employer claim a credit if the employee works for less than one year?
A proportional credit is allowed if the employee voluntarily leaves, becomes totally disabled and unable to continue working, or is terminated for good cause shown. The credit is proportional to the period actually employed.
Where can I get more information about the program?
Contact your local Job Service Office or the West Virginia Employment Services Division at 112 California Avenue, Charleston, WV 25305, or call (304) 558-7849.