Per the West Virginia Schedule M and IT-140 filing instructions, the following types of income must be added to your West Virginia state return:
Interest or Dividend Income on Federal Obligations:
Enter interest or dividend income that is exempt from federal income tax but not state income tax. This includes Savings Bonds and federal interest dividends paid to shareholders.
Interest or Dividend Income on State and Local Bonds (Other than West Virginia):
Enter interest or dividend income on state and local bonds.
Interest on Money Borrowed to Purchase Bonds Earning Exempt West Virginia Income:
Interest deducted from your federal adjusted gross income that was connected to a loan used to purchase bonds which is exempt from state taxes.
Lump Sum Pension Distributions:
Amount of qualifying 402(e) lump sum distributions that are not included in your federal adjusted gross income that was reported on form 4972.
Other Income Excluded from Federal Adjusted Gross Income but Subject to State Tax:
State income is based on the federal adjusted gross income. Certain income must be added to the West Virginia return. For example: Section 199 income. Include the K-1 the income is reported on.
Withdrawals From a Prepaid Tuition/Savings Plan not used for Payment of Qualifying Expenses:
Amount of basis withdrawn from WV Prepaid Tuition/Smart 529 plan not used for qualifying expenses.
For additional information, please see the Instructions for Schedule M.