CHARLESTON, WV (LOOTPRESS) – West Virginia State Treasurer Larry Pack is calling on Governor Patrick Morrisey and the state Legislature to follow President Donald Trump’s lead and pass legislation eliminating state income taxes on tips and overtime.
President Trump implemented a federal policy allowing workers to deduct overtime and qualified tips from their federal tax returns, effective January 1, 2025.
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“President Trump promised to abolish the tax on overtime pay and tips, a centerpiece for his tax policies,” Treasurer Pack said.
“The goal was to help blue-collar and service industry workers who often rely on overtime and tips to make ends meet. Combined with the extension of the 2017 Trump tax cuts, President Trump has delivered, and then some, by enacting some of the largest federal tax cuts in history.”
Under the new federal law, employees and self-employed individuals can deduct up to $25,000 annually in qualified tips, with the deduction phasing out for taxpayers earning over $150,000 ($300,000 for joint filers).
The deduction applies to both itemized and non-itemized taxpayers.
The law also allows a deduction of up to $12,500 annually for the “half” portion of overtime pay, with similar income thresholds and applicability.
“As we see states around us continue to lower their tax obligation on taxpayers, we must do everything in our power to stay competitive. Eliminating tips and overtime from the state income tax will provide relief to hard-working West Virginians,” Pack said.
“West Virginia is in the best financial shape it has been in my lifetime. We have the money to get this done, so we urge Governor Morrisey and the Legislature to make this item a top priority and make it effective January 1, 2025.”
