West Virginia – Schedule E – Credit for Taxes Paid to Another State

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Overview 

If you are a West Virginia resident who earned income in another state and paid taxes there, you may qualify for a credit on your WV return to avoid being taxed twice on the same income.  

What Is the Credit for Taxes Paid to Another State? 

This credit is designed to prevent double taxation when: 

  • You are a resident of West Virginia, 
  • You earned income in another state, and 
  • That state required you to pay income tax on the same income also taxed by West Virginia. 

The credit reduces your WV income tax liability by giving you credit for taxes already paid to another state. 

Note: The credit applies only to income tax (not property tax, sales tax, or other taxes). 

Who Should File ? 

You may need to complete this form if: 

  • You worked in another state while living in West Virginia. 
  • You received income (wages, business, rental, etc.) from another state that taxed it. 
  • You paid income tax to that state and need to claim credit against your WV tax liability. 

How to Report 

  1. Navigate to the State Taxes section on the left-hand side of the screen. 
  1. Click the link: “I’d like to see the forms I’ve filled out or search for a form.” 
  1. In the dropdown menu, select West Virginia. 
  1. Click on the Credits tab. 
  1. Click on “Credit for Income Tax Paid to Another State (Schedule E)” to open the form. 
  1. Enter all applicable information.  
  1. Click ‘Save‘ once complete. 

Additional Resources 

 For further information see: West Virginia IT-140 Instructions (2024) – Credit for Taxes Paid to Another State, Page 14 (PDF) 

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