Thanks. I did our Federal, then WV, then VA. What I don't understand is why our Federal AGI has anything to do with the WV capital gains tax on the sale of our vacation home. According to the WV dept. of tax website, the maximum capital gains tax rate on the sale is 4.82% (if over $60,000). Ours was over that amount, so we expect to pay 4.82% of our capital gains from the sale of our vacation home (at most - 6.95% was withheld at the sale, so we expected a refund). Our W-2 and interest income (our AGI) should have no relevance. It should be capital gains * 4.82% (for example, $100,000 * 4.82% = $4820 in taxes owed). The amount we owe from the sale should not change based on our federal AGI (which is irrelevant to the sale of the vacation home). That said, I have found the schedule in the WV tax return that shows that they do compare the capital gain to the AGI when calculating the tax owed. It does not make sense, but at least I have the answer. Thanks for your help. Sigh.
