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West Virginia tax tidbit: numerous retiree income exemptions

West Virginia flag While  West Virginia does collect income tax on Social Security benefits if the payments are includible in a filer's federal income, it does offer its retired taxpayers several other income offsets.

Computation of taxable Mountain State income begins with a taxpayer's federal adjusted gross income. Then certain additions or subtractions are made.

Filers age 65 or older during any part of the tax year may deduct up to $8,000 from their federal income amount for West Virginia tax purposes. This reduction in income also is available to state taxpayers who are permanently and totally disabled.

Where a couple files a joint state return and each spouse qualifies for the post-65 income reduction, then they can deduct up to $16,000 in income.

Folks who get payments from the West Virginia Teachers Retirement System, West Virginia Public Employees Retirement System, Military Retirement and Federal Retirement Systems may deduct up to $2,000 income when they start figuring taxable state income. This break is available regardless of the retirement recipient's age.

In addition, the total amount of any benefit (including survivorship annuities) received from any West Virginia state or local police, deputy sheriff’s or firemen's retirement system may be deducted from income.

And military retirees receiving armed forces pensions can take an additional modification of up to $20,000.

Tax trip around the United States: This post is part of our series highlighting tax information from the 50 U.S. states and Washington, D.C. You can read other state tax blurbs at our Complete menu of tasty state tax tidbits.

The State Tax Departments page provides links to official state and District of Columbia revenue Web sites so that you can find out more about your home's tax laws and filing requirements.

As we work through the 2010 tax season, a different state will be featured each day as noted in Don't forget your state taxes! Check back to see what tax tidbit we share about your home.

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