W. Va. Code R. § 110-21-73

Current through Register Vol. XLI, No. 50, December 13, 2024

Section 110-21-73 - Credit For Tax Withheld

73.1. General. - The West Virginia income tax deducted and withheld from an individual's wages in any calendar year shall be allowed as a credit against the West Virginia income tax imposed on such individual. If the tax has actually been withheld by the employer, such credit shall be allowed to the person from whose wages the tax was withheld, even though such tax has not been paid over to the Tax Commissioner. However, the taxpayer will not be granted credit for West Virginia income taxes withheld from wages unless the taxpayer attaches a withholding tax statement to his annual return to substantiate such claimed credit.

73.1.1. Where an employer fails to provide an employee with a withholding tax statement and the employee is unable to obtain such statement from the employer, the employee should request from the Tax Department an Affidavit Of West Virginia Income Taxes Withheld. A completed Affidavit Of West Virginia Income Taxes Withheld serves as a substitute withholding tax statement and is useable only where it is impossible to obtain a withholding tax statement from the employer.

73.2. Year Of Credit.-The tax withheld during any calendar year shall be allowed as a credit in accordance with Subsection 73.1 above against the tax imposed for the taxable year which begins in such calendar year. Since most employees file returns on the calendar year basis, they receive credit for the tax withheld during their entire reporting year. However, in the case of a taxpayer who files his return on a fiscal year basis and who is required to include in a return for such fiscal year the income from wages received during such fiscal year (cash basis taxpayer), credit must be claimed for the entire tax withheld in the calendar year during which such fiscal year began. This is true even though the withholding tax statement furnished by the employer shows wages paid and tax withheld for the calendar year.

73.2.1. Example.-A files on a fiscal year basis beginning June 1, 1988, and ending May 31, 1989. The full amount of tax withheld during the calendar year 1988 must be claimed as a credit on such fiscal year return and it may not be prorated to reflect the portion withheld from June 1 to December 31, 1988. The withholding tax statement for 1988 must be attached to the return filed for such fiscal year ending May 31, 1989.

W. Va. Code R. § 110-21-73