West Virginia governor provides more details on proposed tax cuts
The governor of West Virginia has released more details on tax cuts he proposed during his state of the state address. (WCHS)
WEST VIRGINIA (WCHS) — The governor of West Virginia has released more details on tax cuts he proposed during his state of the state address.
The tax cut package is designed to reform the state’s Social Security income tax, add child care tax credits and expand the senior citizen property tax credit, according to a news release from Gov. Jim Justice’s office.
"These tax cuts are about putting West Virginians first,” Justice said in the news release. “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.”
The following information was provided by the governor’s office:
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.
Benefits: Reduces tax burden for many low- and middle-income seniors and brings West Virginia in line with 40 other states that don't tax Social Security.
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.
Benefits: Makes childcare more affordable for families.
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 the 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.
Benefits: Reduces property tax burden for eligible seniors.
If the measures are passed they’d each be effective retroactive to Jan. 1, 2024.