This bill proposes the addition of a new section, 11-21-12o, to the Code of West Virginia, which authorizes a personal income tax deduction for qualified tipped wages. Specifically, it allows resident individual taxpayers to deduct the total amount of qualified tips reported to their employer from their federal adjusted gross income. The bill defines "qualified tips" as any tips or gratuities received in cash, credit or debit card charges, or checks during the course of employment. This deduction is only applicable if the tips are not already deductible when calculating federal adjusted gross income.

The modification is set to take effect for taxable years beginning on or after January 1, 2027, and is available regardless of the type of tax return form filed by the taxpayer. The bill aims to provide financial relief to individuals who rely on tips as part of their income, thereby enhancing their overall tax situation.

Statutes affected:
Introduced Version: 11-21-12o