In the 2019 Regular Legislative Session, HB 2001 provided a decreasing modification against personal income tax for Social Security income under W. Va. Code §11-21-12(c)(8). Beginning in TY2022, 100% of taxable social security benefits became exempt from West Virginia income tax for those with federal adjusted gross income of $50,000 or less (or $100,000 or less if a joint filer).
More recently, in the 2024 Regular Legislative Session, HB 4880 was passed to allow for a decreasing modification for Social Security income for taxpayers with a federal adjusted gross income of more than $50,000 (or more than $100,000 if a joint filer). With the new legislation, taxpayers with a federal adjusted gross income of more than $50,000 will begin to see a gradual phasing in of the modification of their Social Security income. Taxpayers under this income threshold will continue to receive a 100% decreasing modification on their Social Security income.
Starting in TY24, a taxpayer with a federal adjusted gross income of more than $50,000 (or more than $100,000 if a joint filer) will be able to take a decreasing modification of 35% of their Social Security income. This will increase to 65% for TY25, then 100% in TY26 to reach a 100% Social Security income decreasing modification.
The amount received for the Social Security modification under W. Va. Code §11-21-12(c)(8) determines how much of the $8,000 modification, if any, a taxpayer receives for those that are 65 years of age or older or certified permanently disabled, which is set forth under W. Va. Code §11-21-12(c)(9). The $8,000 senior citizen modification is similar in operation to the federal standard deduction. You receive the higher of the $8,000 modification or the sum of various itemized decreasing modifications, including among others taxable social security benefits and certain public pension modifications.
In many cases, taxable social security benefits will be greater than the standard $8,000 modification when a full 100% decreasing modification is permitted beginning in 2026. However, during the phase-in period, many taxpayers' social security benefits may be less than the $8,000 modification and, accordingly, taxpayer’s may only see the benefit of the Social Security decreasing modification at the end of the phase-in period in 2026.
If you have any questions, please do not hesitate to contact our Taxpayer Services team. They can be reached from 8:00am to 5:00pm at 304-558-3333, toll-free at 1-800-982-8297, or at
TaxHelp@WV.Gov