This bill proposes amendments to the Code of West Virginia, specifically targeting the personal income tax regulations outlined in section 11-21-12. The primary objective of the bill is to exempt social security benefits from personal income tax for West Virginia residents. The bill introduces new language that allows for a complete exemption of social security benefits received under Title 42 U.S.C., Chapter 7, for taxable years beginning after December 31, 2024. Additionally, it modifies existing provisions regarding the treatment of social security benefits in the calculation of West Virginia adjusted gross income, gradually increasing the percentage of benefits exempted over the next few years until full exemption is achieved by 2026.

Furthermore, the bill makes several adjustments to the existing modifications that affect federal adjusted gross income, including the deletion of certain limitations on retirement benefits and the introduction of new provisions that clarify the treatment of social security income. Notably, it specifies that the exemption applies only when the federal adjusted gross income of a married couple filing jointly does not exceed $100,000, or $50,000 for single filers. The bill aims to provide financial relief to residents relying on social security benefits, thereby enhancing their economic well-being.

Statutes affected:
Introduced Version: 11-21-12