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Author Topic: Tax Burden for West Virginia Retired Vets ►As August 2015  (Read 2110 times)

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Tax Burden for West Virginia Retired Vets ►As August 2015
« on: September 11, 2015, 02:21:50 pm »

Many veterans planning to retire use the presence or absence of a state income tax as a litmus test for a retirement destination. This is a serious miscalculation since higher sales and property taxes can more than offset the lack of a state income tax. The lack of a state income tax doesn’t necessarily ensure a low total tax burden. States raise revenue in many ways including sales taxes, excise taxes, license taxes, income taxes, intangible taxes, property taxes, estate taxes and inheritance taxes. Depending on where you live, you may end up paying all of them or just a few. Following are the taxes you can expect to pay as a VA rated disabled veteran or military retiree if you retire in West Virginia.
State Sales Tax: 6% (prescription drugs exempt). Food taxed at 1%. Seniors age 60 and older are eligible for the Golden Mountaineer Discount Card that can be used for pharmaceutical discounts, retail and professional discounts. Some municipalities may add a local sales tax of up to 1%. To apply or obtain more information, call 304-558-3317 or 877-987-3646.
Gasoline Tax: 53.0 cents/gallon (Includes all taxes) Diesel Fuel Tax: 59.0 cents/gallon (Includes all taxes) Cigarette Tax: 55 cents/pack of 20
Sales Taxes
Personal Income Taxes
Tax Rate Range: Low – 3%; High – 6.5% Income Brackets: Five. Lowest – $10,000; Highest – $60,000. For joint returns, the taxes are twice the tax imposed on half the income. Personal Exemptions: Single – $2,000; Married – $4,000; Dependents – $2,000 Standard Deduction: None Medical/Dental Deduction: For tax year 2007, if you had no employer and were not self-employed, you may claim as a subtraction from income 33.4% of the amount you paid for medical care insurance. If you had an employer or were self-employed, you may be able to claim a subtraction from income for the amount you paid for medical insurance. It does not include long-term care insurance. Federal Income Tax Deduction: None Retirement Income Taxes: The beginning point for West Virginia taxation is federal adjusted gross income. Therefore, any amount of the IRA distribution or pension income that is taxable and included in federal adjusted gross income is taxable on the West Virginia income tax return. $2,000 of civil, and state pensions are exempt. Social Security income is taxable only to the extent that the income is includable in your federal adjusted gross income. Taxpayers 65 and older or surviving spouses of any age may exclude the first $8,000 (individual filers) or $16,000 (married filing jointly) of any retirement income. Out-of-state government pensions qualify for the $8,000 exemption. An individual, regardless of age, may deduct up to $2,000 of benefits received from the West Virginia Teachers Retirement System, West Virginia Employees Retirement System, and military and federal retirement systems. Retired Military Pay: First $2,000 is exempt (see above). Military retirees are able to take an additional decreasing modification for military retirement up to $20,000. Military Disability Retired Pay: Retirees who entered the military before Sept. 24, 1975, and members receiving disability retirements based on combat injuries or who could receive disability payments from the VA are covered by laws giving disability broad exemption from federal income tax. Most military retired pay based on service-related disabilities also is free from federal income tax, but there is no guarantee of total protection. VA Disability Dependency and Indemnity Compensation: VA benefits are not taxable because they generally are for disabilities and are not subject to federal or state taxes. Military SBP/SSBP/RCSBP/RSFPP: Generally subject to state taxes for those states with income tax. Check with state department of revenue office.
Property tax is administered by county officials and officials of several state government agencies. Although the Department of Tax and Revenue plays a major role in the administration of this tax, less than one-half of one percent of the property tax collected goes to state government. The primary beneficiaries of the property tax are county boards of education.   Property taxes are paid to the sheriff of each of the state’s 55 counties. Each county and municipality can impose its own rates of property taxation within the limits set by the West Virginia Constitution. Property is assessed at 60% of fair market value.
The West Virginia legislature sets the rate of tax of county boards of education. This rate is used statewide by all county boards of education. However, the total tax rate for county boards of education may differ from county to county due to excess levies. The total tax rate is a combination of the tax levies from four state taxing authorities: state, county, schools, and municipal. This total tax rate varies for each of the four classes of property, which consists of personal, real, and intangible properties. Property is assessed according to its use, location, and value as of July 1. The amount of property tax paid depends on the following factors: the assessed property value as determined by a county assessor, and the tax rate levied against each $100 of the property’s assessed valuation. The assessed value of the property must be 60 percent of the property’s true and actual value, which is defined as the amount of money the property would be worth in a sale.

Property Taxes
Senior citizens eligible for the Homestead Exemption Program may be entitled to a Senior Citizen Tax credit. The credit is based on the amount of property taxes paid on the first $10,000 or portion thereof, of the taxable assessed value over the $20,000 Homestead Exemption. The credit is based on the amount of property taxes paid on the first $20,000, or portion thereof, of the taxable assess value over the $20,000 Homestead Exemption. Taxpayers who pay the federal alternative minimum tax cannot claim this credit. Seniors who are 65 or older and who experience a property tax increase of at least $300 on their owner- occupied West Virginia home over the past year may qualify for the Senior Citizen property Tax Deferment if their income was no more than $35,000. The credit must be approved by your county assessor’s office.
The state’s homestead Excess Property Tax Credit is a refundable personal income tax credit for real property taxes paid in excess of your income. The maximum refundable tax credit is $1,000.
There is no inheritance and the estate tax is limited and related to federal estate tax collection.
To compare the above sales, income, and property tax rates to those accessed in other states go to:
Inheritance and Estate Taxes
Other State Tax Rates

Sales Tax: http://www.tax-rates.org/taxtables/sales-tax-by-state. Personal Income Tax: http://www.tax-rates.org/taxtables/income-tax-by-state. Property Tax: http://www.tax-rates.org/taxtables/property-tax-by-state.
For further information call 304-558-3333 or 800-982-8297 or visit the West Virginia State Tax Department site http://www.wva.state.wv.us/wvtax/WestVirginiaStateTaxDepartment.aspx. Also visit the West Virginia Department of Revenue at http://www.revenue.wv.gov/Pages/default.aspx.
[Source: http://www.retirementliving.com & http://www.tax-rates.org August 2015 ++]
Joe Kleinsmith
All State VFW Post 1716 Cmdr (1998-2000)
Cpt, VFW Post Honor Guard, Retired (1991-2009)
SC-SB County Council Cmdr (1996-1997)
SFC, US Army, Retired (1971-1991)
Full Time RV'er
www.vfwwebcom.org/ca/post1716
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