Does West Virginia follow the federal no-tax-on-tips and overtime deductions?
DOES NOT CONFORM
West Virginia does not follow the federal deductions for state income tax. You can still claim the tips and overtime deductions on your federal return (Schedule 1-A) — they simply do not reduce your West Virginia state tax. Do not assume your state return treats this income the way your federal return does.
Verified against the official state source below — last verified October 26, 2026
| Deduction | West Virginia position |
|---|---|
| Federal tips deduction (IRC §224) | Does not conform |
| Federal overtime deduction (IRC §225) | Does not conform |
What the state itself says
"federal deductions are not included in federal adjusted gross income, which is the starting point for calculation of West Virginia Personal Income Tax liability"
- Official source
- Fiscal Note for Senate Bill 492, prepared by the WV State Tax & Revenue Department ; WV Legislature bill status for SB 492 (2026 session), wvlegislature.gov.
- Tax years covered
- 2025–2028 (no provision in effect for any of these years).
West Virginia personal income tax starts from federal AGI (§11-21-12), so the below-the-line deductions cannot flow through. SB 492 (2026), which would have added a §11-21-12o modification for qualified tips and overtime for 2026–2028, remained pending in Senate Finance (last action Jan. 19, 2026) and was never enacted; SB 460 was likewise only introduced. Caveat: WV's position rests on the official fiscal note's mechanism analysis plus non-enactment of the adopting bill — no WV Tax Division bulletin specifically on tips/overtime was found. Weakest documentary link in this register.
Your federal deduction is separate
Whatever your state does, the federal deductions run on their own rules: check your W-2 codes with the W-2 Code Checker, estimate with the Tips Calculator and Overtime Calculator, and see the glossary for any term. All state positions: the state-by-state index.
State position verified October 26, 2026 from the official source above. State guidance changes; confirm on the source before filing. This page is general information, not tax advice.