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Bill > HB4963


WV HB4963

WV HB4963
Relating to establishing an additional modification reducing federal adjusted gross income relating to taxes on tips and overtime


summary

Introduced
01/29/2026
In Committee
01/29/2026
Crossed Over
Passed
Dead

Introduced Session

2026 Regular Session

Bill Summary

The purpose of this bill is to establish an additional modification reducing federal adjusted gross income relating to taxes on tips and overtime.

AI Summary

This bill establishes an additional tax deduction for West Virginia residents by allowing a reduction in their federal adjusted gross income, which is the starting point for calculating state income tax. For taxable years between January 1, 2026, and January 1, 2029, taxpayers can deduct the full amount of qualified tips and qualified overtime compensation they reported on their federal tax returns. After January 1, 2029, this deduction will be capped at $25,000 annually for qualified tips and $12,500 annually for qualified overtime compensation, with these amounts phasing out for individuals earning over $150,000 in modified adjusted gross income. For nonresidents, only tips and overtime earned from work performed within West Virginia will qualify for this deduction.

Committee Categories

Budget and Finance

Sponsors (7)

Last Action

To House Finance (on 01/29/2026)

bill text


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