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posted Feb 19, 2024 8:44:28 AM

Why does my 401k show exempt in WV when it’s a normal distribution? I left state info blank.

It’s showing as a deduction  on Schedule M.

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1 Best answer
Expert Alumni
Feb 26, 2024 6:58:37 AM

West Virginia allows an 8,000 income deduction for residents age 65 and older. 

If your 401(k) distribution is included in that 8,000, it will be deducted from your West Virginia taxable income.

 

According to the state of West Virginia:

"Computation of West Virginia taxable income begins with federal adjusted gross income to which specific increases and/or decreases are made. Each taxpayer who is (a) age 65 or older during any part of the taxable year; or (b) permanently and totally disabled may deduct from their federal adjusted gross income up to $8,000 of his/her income received from any source. If a joint return is filed by two qualifying individuals, up to $8,000 of income received by each individual may be deducted."

1 Replies
Expert Alumni
Feb 26, 2024 6:58:37 AM

West Virginia allows an 8,000 income deduction for residents age 65 and older. 

If your 401(k) distribution is included in that 8,000, it will be deducted from your West Virginia taxable income.

 

According to the state of West Virginia:

"Computation of West Virginia taxable income begins with federal adjusted gross income to which specific increases and/or decreases are made. Each taxpayer who is (a) age 65 or older during any part of the taxable year; or (b) permanently and totally disabled may deduct from their federal adjusted gross income up to $8,000 of his/her income received from any source. If a joint return is filed by two qualifying individuals, up to $8,000 of income received by each individual may be deducted."