No. West Virginia fully exempts qualifying military retirement income from state income tax. If your military retirement pay was included in your federal taxable income, you can subtract that income on your West Virginia return.
This subtraction applies to retirement income received from:
- The U.S. Armed Forces
- Military Reserves
- National Guard retirement systems
- Survivor Benefit Plan (SBP) annuities and other qualifying military survivor benefits
West Virginia's Schedule M specifically allows a subtraction for the taxable amount of military retirement income reported on your federal return.
What Military Retirement Income Qualifies?
You may qualify for the subtraction if you received taxable retirement income from the:
- Defense Finance and Accounting Service (DFAS)
- U.S. Army
- U.S. Navy
- U.S. Air Force
- U.S. Marine Corps
- U.S. Coast Guard
- National Guard
- Military Reserve components
Military survivor annuities are also eligible for this subtraction.
How Do I Enter the Military Retirement Subtraction?
To claim the subtraction in your West Virginia return:
- Go to State Section.
- Select the 3 dots to Edit the West Virginia Return.
- Choose Subtractions From Income.
- Enter the amount of your eligible Military Retirement Modification.
- Continue through the remainder of the return.
Do I Need Any Documentation?
Yes. West Virginia's instructions state that a copy of your Form 1099-R should be retained and provided when required to support the subtraction for military retirement income.