|CHARLESTON, WV — In his State of the State address last week, Gov. Justice unveiled a tax cut package designed to put more money back into the pockets of West Virginians of all ages. The plan includes significant reforms to the state’s Social Security income tax, child and dependent care credit, and senior citizen property tax credit.
“These tax cuts are about putting West Virginians first,” Gov. Justice said. “We’re continuing to make West Virginia a more affordable place to live, raise a family, and retire, and these proposals demonstrate my commitment to putting real money back in people’s wallets, helping families raise their kids, seniors stay in their homes, and everyone breathe a little easier. I encourage the Legislature to strongly consider these proposals.”
Highlights of the Governor’s Proposed Tax Cuts:
Social Security Benefit Exemption:Who benefits: Over 50,000 senior households.What changes:Removes the current income cap on excluding Social Security income from taxation.If passed, will be effective retroactively to January 1, 2024.Benefits:Reduces tax burden for many low- and middle-income seniors.Brings West Virginia in line with 40 other states that don’t tax Social Security.Supported by AARP-WV. Child and Dependent Care Tax Credit:Who benefits: Over 16,000 West Virginia families.What changes:Creates a state tax credit equal to 50% of the allowable federal child and dependent care credit.Effective retroactively to January 1, 2024.Benefits:Makes childcare more affordable for families.Aligns with existing federal credit for easier understanding and compliance.Additional details:Maximum childcare credit ranges from $300 to $525 for one child and from $600 to $1,050 for two or more children depending on amount of out-of-pocket expenses incurred and income level.Senior Citizen Property Tax Credit:Who benefits: Seniors with homestead property taxes and federal adjusted gross income below 200% of the federal poverty guideline.What changes:Increases the maximum credit amount by 50%.Expands eligibility by additional 50% of the federal poverty guideline.Effective retroactively to January 1, 2024.Benefits:Reduces property tax burden for eligible seniors.Reaches more low- and middle-income seniors within the eligibility range.
|The Governor’s proposed tax cuts are now being considered by the West Virginia Legislature.