WV HB4963

Creates a state income tax deduction for qualified tips up to $25,000 annually and qualified overtime compensation up to $12,500 annually, effective for tax years beginning January 1, 2029

For tax years 2026-2028, allows West Virginia taxpayers to deduct tips and overtime amounts that match federal deductions under Internal Revenue Code sections 224 and 225

Phases out the deduction for taxpayers with modified adjusted gross incomes exceeding $150,000

Limits nonresident eligibility to tips and overtime compensation earned from services performed within West Virginia

Applies regardless of the type of tax return form filed by the taxpayer