Clients files a joint return and is a part-year WV resident for 2018. They move to FL at the end of June 2018. Federal AGI is $100,000 ($60,000 of pensions, $40,000 of SS). Both are over 65.
I apportioned income based on days of residency on WV Schedule A. $50,000 was earned while a WV resident.
The WV return starts with Federal AGI and subtracts $16,000 for seniors ($8,000 per person) on WV Schedule M. WV AGI is therefore $84,000. The return then has a personal exemption of $4,000. WV taxable income is $80,000.
My question: does the $16,000 subtraction on Schedule M (and/or $4,000 personal exemption) need to be reduced because the clients are not full-year residents? Or, because they have $50,000 of WV income, then they qualify for the full $16,000 subtraction and the $4,000 exemption.
Currently, my software is taking the full 16,000 and $4,000. Per the IT-140 instructions: "Income earned outside of West Virginia may not be claimed on Schedule M as other deductions. Please use Schedule A."
Thanks so much