By Jennifer J. Troyer
On March 27, 2024, West Virginia Governor Jim Justice signed legislation expanding the subtraction from federal adjusted gross income (AGI) for Social Security benefits so that all West Virginia personal income taxpayers may qualify. Previously, the subtraction for Social Security benefits was limited to married taxpayers filing joint with federal AGI up to $100,000 (single taxpayers or married filing separately, $50,000). (L. 2024, H4880, effective 06/07/2024 and applicable retroactively to taxable years beginning after 2023.)
Phase in required.
For taxable years beginning on and after January 1, 2024, 35% of the amount of Social Security benefits received and included in federal AGI is allowed as a subtraction from federal AGI when calculating West Virginia taxable income. For taxable years beginning on or after January 1, 2025, 65% of the amount of Social Security benefits received and included in federal AGI may be subtracted. Finally, for taxable years beginning on or after January 1, 2026, 100% of the amount of Social Security benefits received and included in federal AGI may be subtracted.
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