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New Member
posted Jun 6, 2019 1:34:34 AM

I live in Arizona and have $446 of passive income from West Virginia. Do I need to file a West Virginia tax return?

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1 Best answer
Expert Alumni
Jun 6, 2019 1:34:41 AM

You do have a filing requirement in West Virginia, but you can elect for your income to be included as part of a Nonresident composite return since your income is derived from a partnership.  The following information below comes from West Virginia's tax instruction manual regarding this:

Nonresident individuals who are partners in a partnership, shareholders in an S corporation or beneficiaries of an estate or trust that derives income from West Virginia sources may elect to be included on a nonresident composite return. If the election is made, the IT-140NRC is filed by the pass-through entity and eliminates the need for the individual to file a separate nonresident/part-year resident return for income reported on the NRC. A $50 processing fee is required for each composite return filed.  (Italics and bolding added)

If a separate individual return is filed, the nonresident must include the West Virginia income derived from the pass-through entity filing the composite return. Credit may be claimed for the share of West Virginia income tax remitted with the composite return. This form is available on our website at tax.wv.gov.

4 Replies
Expert Alumni
Jun 6, 2019 1:34:36 AM

What is the nature of the passive income?

New Member
Jun 6, 2019 1:34:37 AM

The passive income is from shares in a partnership. Does that help?

Expert Alumni
Jun 6, 2019 1:34:39 AM

@pliebfried  It did.  please see below.  Hopefully your Partnership can help with this.

Expert Alumni
Jun 6, 2019 1:34:41 AM

You do have a filing requirement in West Virginia, but you can elect for your income to be included as part of a Nonresident composite return since your income is derived from a partnership.  The following information below comes from West Virginia's tax instruction manual regarding this:

Nonresident individuals who are partners in a partnership, shareholders in an S corporation or beneficiaries of an estate or trust that derives income from West Virginia sources may elect to be included on a nonresident composite return. If the election is made, the IT-140NRC is filed by the pass-through entity and eliminates the need for the individual to file a separate nonresident/part-year resident return for income reported on the NRC. A $50 processing fee is required for each composite return filed.  (Italics and bolding added)

If a separate individual return is filed, the nonresident must include the West Virginia income derived from the pass-through entity filing the composite return. Credit may be claimed for the share of West Virginia income tax remitted with the composite return. This form is available on our website at tax.wv.gov.