West Virginia Payments Section Overview

The West Virginia Payments section is used to report certain tax payments, withholding amounts, and refund elections that affect your West Virginia refund or balance due.

Most West Virginia withholding reported on your federal tax documents automatically carries to your state return. However, you should review this section carefully to ensure all payments and credits have been properly reported.

The West Virginia Payments section may include:

• Withholding from the Sale of West Virginia Real Estate
• Applying Your Refund to Next Year's West Virginia Taxes
• West Virginia Schedule 40W Payments

West Virginia Income Tax Withholding

In most cases, West Virginia income tax withholding reported on your:

• Form W-2
• Form 1099
• Schedule K-1
• Other tax documents

automatically transfers to your West Virginia return.

Before filing, make sure the West Virginia withholding amounts shown on your tax documents have been entered correctly.

Withholding From the Sale of West Virginia Real Estate

West Virginia may require income tax withholding when certain real estate transactions involve nonresident sellers.

Who may have this withholding?

You may have withholding if:

• You sold real property located in West Virginia, and
• Tax was withheld at the time of the sale.

The withholding acts as a prepayment of your West Virginia income tax and may increase your refund or reduce your balance due.

What records should I keep?

Retain copies of:

• Closing statements
• Real estate settlement documents
• Withholding certificates
• Any documentation showing the amount withheld

Apply Your Refund to Next Year's West Virginia Taxes

If you're due a West Virginia refund, you may choose to apply all or part of that refund to your estimated West Virginia income taxes for the next tax year.

Why would I do this?

Applying your refund forward may be beneficial if you:

• Expect to owe West Virginia tax next year.
• Make quarterly estimated tax payments.
• Want to reduce future out-of-pocket tax payments.

Important

The amount applied cannot exceed your available refund.

If your return results in a balance due or your refund changes during processing, the amount carried forward may be adjusted.

West Virginia Schedule 40W

Schedule 40W is used to report certain payments and withholding amounts that are not otherwise reported on your federal return.

What information is reported on Schedule 40W?

Schedule 40W may be used to report:

• Pass-through entity withholding
• Nonresident withholding
• Other West Virginia tax payments not already reported on Forms W-2 or 1099
• Certain payments not reported on Federal Schedule K-1 or Form NRW-2

When should I complete Schedule 40W?

Complete Schedule 40W if you received documentation showing West Virginia tax was paid on your behalf and that withholding has not already been reported elsewhere on your return.

What documentation should I keep?

Keep copies of:

• Schedule K-1
• Form NRW-2
• Withholding statements
• Pass-through entity reports
• Any other documentation supporting the payment claimed

How Do I Access the West Virginia Payments Section?

1. Navigate to the West Virginia Return section.
2. Select Payments.
3. Review any withholding and payment amounts carried into the return.
4. Enter any additional payment information that applies to your situation.
5. Indicate whether any withholding resulted from the sale of West Virginia real estate.
6. Enter any refund amount you wish to apply to next year's taxes.
7. Complete Schedule 40W, if required.
8. Continue through the remainder of the return.

What Records Should I Keep?

Keep copies of:

• Forms W-2
• Forms 1099
• Schedule K-1s
• Form NRW-2
• Real estate closing documents
• Withholding statements
• Records of estimated tax payments
• Any worksheets used to calculate payments or credits

Keeping these records with your tax documents can help support the amounts claimed if the West Virginia State Tax Department requests additional information after your return is filed.