West Virginia HB4963 proposes an additional tax modification for tips and overtime compensation, reducing federal adjusted gross income.

West Virginia HB4963 introduces a new tax modification to reduce federal adjusted gross income for tips and overtime compensation. This modification allows for deductions of up to $25,000 annually for qualified tips and $12,500 for qualified overtime compensation. The modification phases out for taxpayers with modified adjusted gross incomes over $150,000. Nonresidents can only claim modifications for tips and overtime compensation attributable to services performed in West Virginia. This bill applies to taxable years beginning on or after January 1, 2026, and before January 1, 2029.

West Virginia HB4963 proposes an additional tax modification for tips and overtime compensation, reducing federal adjusted gross income.

West Virginia HB4963 introduces a new tax modification to reduce federal adjusted gross income for tips and overtime compensation. This modification allows for deductions of up to $25,000 annually for qualified tips and $12,500 for qualified overtime compensation. The modification phases out for taxpayers with modified adjusted gross incomes over $150,000. Nonresidents can only claim modifications for tips and overtime compensation attributable to services performed in West Virginia. This bill applies to taxable years beginning on or after January 1, 2026, and before January 1, 2029.