HB 4024
Relating to Updating Personal Income Tax definitions
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- Passed House of Delegates
- Passed Senate
- To Governor
- Became Law
Bill overview
This bill updates the definitions used in West Virginia’s Personal Income Tax Act to align with changes in federal income tax law. Specifically, it clarifies the meaning of ‘federal adjusted gross income’ and other related terms by referencing the Internal Revenue Code of 1986, as amended. It also addresses medical savings accounts, clarifying that contributions are not considered wages and outlining the tax treatment of withdrawals. The bill includes retroactive application of certain amendments to the extent allowed by federal law.
Key provisions
- Defines ‘federal adjusted gross income’ to match federal tax law.
- Clarifies the definition of ‘taxable trust’ to exclude medical savings accounts.
- States that employer contributions to medical savings accounts are not considered wages.
- Details the tax treatment of withdrawals from medical savings accounts.
- Specifies the effective dates for certain amendments, including retroactive application where permitted by federal law.
- Updates the definition of ‘laws of the United States’ for a specific credit related to property taxes paid by low-income seniors.
- Addresses the exemption for federal income tax purposes, referencing the elimination of personal exemptions.
Who is affected
- Taxpayers in West Virginia
- Individuals with medical savings accounts
- Employers contributing to medical savings accounts
- The West Virginia Tax Commissioner
- Senior citizens eligible for a property tax credit
Sponsors
Official sponsors from legislative records.
Primary sponsor
Hanshaw (Mr. Speaker)
Cosponsor
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