The following credits are available to taxpayers filing an individual West Virginia state tax return.
Non-Family Adoption Tax Credit
The Non-Family Adoption Credit is a one-time nonrefundable tax credit for nonfamily adoptions. “Nonfamily adoptions” mean the adopted child is not the son, daughter, or stepchild of the taxpayer who made the adoption. The credit is equal to $4,000 which may be taken in the year of the adoption of each nonfamily child, whose age at adoption is under eighteen years. This credit may, at the option of the taxpayer, be taken over a period of three years
Senior Citizen Tax Credit
Low-income taxpayers who are eligible for the Homestead Property Tax Exemption may be eligible for the Senior Citizens Tax Credit. You must file a return to receive this refundable credit. Credit eligibility is restricted to taxpayers who participate in the Homestead Exemption program, who incur and pay property taxes on home assessed more than $20,000 and whose federal adjusted gross income is less than 150% of federal poverty guidelines.
The maximum federal adjusted gross income level is $20,385 for a single person household plus an additional $7,080 for each additional person in the household (e.g., $27,465 for a two-person household). The WV/SCTC-1 Form is required to be filed with your WV tax return.
Credit for Taxes Paid to Another State
West Virginia allows a credit for tax paid to another state on income taxable to West Virginia and the other state. The program will automatically calculate this credit for your Resident West Virginia return if you have a Nonresident return created in your account for the other state. If you are completing a Part-year Resident return for the other state, the allowable credit will need to be figured manually.
Part-year residents may only claim credit for taxes paid to another state during their period of West Virginia residency.
Exception: Reciprocal States - West Virginia has reciprocal agreements with Kentucky, Maryland, Ohio, Pennsylvania and Virginia. If you are a West Virginia resident working in one of these states, and your employer withheld the other state’s income tax, you must file for a refund from that state. You cannot claim a refund for taxes withheld to a reciprocal state on the resident return. For complete filing instructions for the resident and nonresident reciprocal states, review our Knowledgebase Article.
The credit for taxes paid to another state is a nonrefundable credit against your tax liability. This credit is not allowed for income taxes paid to foreign countries. Click here for complete instructions for West Virginia Credit for Taxes Paid to Another State (nonreciprocal states).
Homestead Excess Property Tax Credit
According to West Virginia's income tax booklet, "the Homestead Excess Property Tax Credit provides a refundable credit of up to $1,000 for low-income property owners whose real property tax, less senior citizen tax credit, paid on your OWNER-OCCUPIED home exceeds 4% of your income (gross household income including social security benefits). Low-income is defined as federal adjusted gross income that is 300% or less of the federal poverty guideline, based upon the number of individuals in the family. Eligibility for the Homestead Exemption program is not necessary to qualify for this credit." You will need to complete HEPTC-1.
For additional information regarding these credits, click here.