West Virginia Tax Free $ 10,200 Unemployment Benefits


CHARLESTON, WV (WOWK) – Tax season has been busy on the AARP tax preparation site in South Charleston.

AARP District Tax Assistance Coordinator Steve Wellons said they’ve done more than 1,000 tax preparations.

Due to COVID-19, they asked people to file their forms while the tax preparers worked there from home.

Another change this year is the new unemployment benefit exemption which will not tax the first $ 10,200.

It was first passed by President Biden in the American Rescue Plan Act, and then some states followed suit.

West Virginia Governor Jim Justice on Tuesday signed a bill that will also exempt the $ 10,200 unemployment benefit from state taxes.

Those who have already filed their returns will need to amend their state income tax return, which Wellons says will be an additional problem for people and tax preparers.

“To me it seems like it would be a lot more efficient if the West Virginia tax department could basically do a ‘software patch’ and change those returns and send people their refunds back,” he said.

Delegate Kayla Young (D-Kanawha) has been working on the bill with the governor, and she says there is another option available.

“If you’ve filed your taxes, you’ll need to go to the website for the West Virginia state tax department,” Young said.

“They’ve set up a whole site where you can fill out the form; it will look like your normal state feedback and at the top you will just click on ‘return changed’ instead of new return, ”she said.

Young says the bill is very exciting.

“We didn’t think West Virginia would be one of the states that would do this,” she said.

“West Virginia is one of the few states that tax unemployment income as income in the first place. “

Wellons says people need the money.

“These people who were receiving, who have this unemployment, were already in difficult times financially and really, really need, they could really use this money that they would get back,” he said.

If you have previously filed a return through third-party software like TurboTax, you do not need to edit the state return through them, you can do so through the West Virginia State Tax Service website. free.

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