Are you wondering, Does West Virginia Tax Disability Income? The answer is generally no, West Virginia offers several tax benefits for individuals receiving disability income, especially veterans, income-partners.net can help you navigate these benefits and explore partnership opportunities to increase your income. This guide clarifies West Virginia’s tax policies and how they relate to disability income, retirement pay, and other veteran benefits.
1. What West Virginia Military and Veteran State Tax Benefits Are Available?
West Virginia provides multiple state tax benefits for service members, veterans, and their families. These include exemptions on military pay, retired pay, and certain disability benefits.
If a service member’s home of record is West Virginia, but they spent less than 30 days in the state, they are not considered a resident for tax purposes and won’t be taxed on their military income. Military pay for National Guard or U.S. Armed Forces Reserves members called to federal active duty during Operation Enduring Freedom or domestic security ordered by the President is also exempt. Combat or hazardous duty pay excluded from federal taxes is also excluded from West Virginia taxes.
2. How Are West Virginia Taxes on Military Pay Handled?
West Virginia offers several state income tax reductions for resident service members. If a service member’s home of record is West Virginia but they did not spend more than 30 days in West Virginia, the service member is not considered a resident for tax purposes and is not subject to state income tax on their military income.
Military pay received by West Virginia resident service members serving in the National Guard or U.S. Armed Forces Reserves who are called to federal active duty to serve during Operation Enduring Freedom or during domestic security ordered by the President is exempt from West Virginia income taxes. Combat or hazardous duty pay that is excluded from federal taxes is also excluded from West Virginia taxes.
Service members serving on active duty in the U.S. Armed Forces for 30 or more days who permanently separate from service and receive a DD214 are eligible for an income tax deduction of their military pay for the year of their discharge.
3. What About West Virginia Income Taxes on Military Retired Pay?
West Virginia does not tax military retired pay, offering significant relief to retired service members residing in the state. This includes payments from the Thrift Savings Plan (TSP), although TSP distributions are subject to state taxes, and early distributions may incur higher taxes.
4. Are Nonresident Military Spouses Exempt from West Virginia State Taxes?
Yes, income earned by a nonresident spouse of a nonresident service member stationed in West Virginia is exempt from West Virginia income taxes. This exemption applies if the service member is in West Virginia due to military orders and the spouse is in the state to be with them.
5. Does West Virginia Tax U.S. Department of Veterans Affairs Military Disability Retirement Pay?
No, military disability retirement pay received as a pension, annuity, or similar allowance for personal injury or sickness resulting from active service in the U.S. Armed Forces should not be included in taxable income. This includes disability compensation and pension payments for disabilities paid either to veterans or their families, grants for homes designed for wheelchair living, and grants for motor vehicles for veterans who lost their sight or the use of their limbs, and benefits under a dependent-care assistance program.
6. What About West Virginia State Taxes on U.S. Department of Veterans Affairs Disability Dependency and Indemnity Compensation (DIC)?
Disability Dependency and Indemnity Compensation (DIC) is a tax-free monetary benefit paid to eligible survivors of service members who died in the line of duty or eligible survivors of veterans whose death resulted from a service-connected injury or disease. This benefit remains tax-free in West Virginia.
7. Is There a West Virginia State Tax Exemption on Military Survivor Benefit Plan (SBP), Reserve Component Survivor Benefit Plan (RCSBP), and Retired Serviceman’s Family Protection Plan (RSFPP) Annuities?
West Virginia does not tax SBP, RCSBP, or RSFPP annuities, providing financial relief for survivors receiving these benefits.
8. What is the West Virginia Disabled Veteran Homestead Property Tax Credit?
Honorably discharged disabled veterans with a 90% or greater combined disability rating from the VA are eligible for an income tax credit for the amount they paid in property taxes for their homestead. The homestead is defined as a single-family residential house, including mobile, manufactured, or modular homes, and the land surrounding it. Veterans must have used or occupied the homestead for at least six months to be eligible.
Veterans are still required to pay their property taxes (by October 1 and April 1) and will receive the credit when they file their personal income taxes. If a veteran owns several properties, the credit will only apply to the property where they primarily live. Contact the county tax assessor where the property is located for more information.
9. Is There a West Virginia Tax Benefit for Service Members Killed or Missing during Service in a Combat Zone?
Service members who die while serving in a combat zone, or from wounds, disease, or injuries received while serving in a combat zone, will not owe taxes for the year of their death. This also applies to any prior taxable year ending on or after the first day they served in a combat zone. Any unpaid tax for previous taxable years will not be assessed, and if collected, the amount will be credited or refunded as an overpayment. Service members declared missing in action are also eligible for this tax exemption, with the date they were listed as missing being their date of eligibility. This eligibility continues until they are returned to U.S. control or two years after the official end of hostilities.
10. Does West Virginia Offer a Vehicle Property Tax Exemption for Resident Service Members?
Yes, West Virginia resident service members serving in the U.S. Armed Forces who are stationed outside of West Virginia are eligible for a property tax exemption on one vehicle. Service members should contact the County Assessor’s Office in their West Virginia county of residence for more information and to apply.
11. What West Virginia Military and Veteran Education Benefits are Available?
West Virginia provides numerous education benefits for veterans and their families, including tuition waivers, educational encouragement programs, and re-education assistance.
11.1. West Virginia Medal of Honor and Andrew J. Trail Purple Heart Tuition Waiver
All state-supported institutions of higher education will waive tuition and mandatory fees for veterans who have been awarded the Medal of Honor or the Purple Heart. Eligible veterans can receive a waiver for up to eight semesters. To be eligible, veterans must be West Virginia residents, have received either the Medal of Honor or the Purple Heart, and have received an honorable discharge. Purple Heart recipients must also have either lost a limb or have a permanent disability from their wounds.
The waiver only applies after all other state and federal education benefits, grants, or scholarships are used to pay tuition and mandatory fees. Contact the admission office at the educational institution they plan to attend for more information.
11.2. West Virginia Educational Encouragement Program (WVEEP)
WVEEP pays 100% of tuition and fees up to $10,000 per fiscal year for West Virginia National Guard service members attending a participating West Virginia institution of higher education. This benefit may be used with federal tuition assistance. Service members must be enrolled in an approved, accredited post-secondary institution in West Virginia, not be under any type of adverse action or administrative flag when they apply, provide a detailed degree plan, complete all classes before their Expiration Term of Service (ETS) date, have documentation from the school that clearly lists the cost of each course, and submit grades to the WVEEP manager when they complete a class. WVEEP funds can only be used for tuition and allowable fees, and students cannot keep any overpayment or refund.
11.3. West Virginia Veterans Re-Education Assistance
The West Virginia Veterans Re-Education Assistance program offers up to $500 per semester to veterans for tuition assistance, tests for a professional license or certification, or other training materials. Tuition assistance is based on funding availability. To be eligible, veterans must be honorably discharged from the U.S. Armed Forces, used all VA educational benefits, and be a resident of West Virginia.
11.4. West Virginia Tuition and Fees Waiver for Surviving Spouses and Children of Service Members Killed in the Line of Duty
West Virginia offers a tuition and fees waiver for surviving spouses and children of resident service members who were killed in the line of duty while serving in an active or reserve component of the U.S. Armed Forces. Those eligible can receive a tuition and fees waiver for undergraduate courses at a state institution of higher education for up to eight semesters or completion of a bachelor’s degree.
Those eligible must be the surviving spouse or child of a resident service member who was killed in the line of duty while serving on federal or state active duty, or while under official orders while serving in the West Virginia National Guard or the U.S. Armed Forces Reserves. Students must submit a Free Application for Federal Student Aid (FAFSA) each year and maintain satisfactory academic progress to remain eligible. Contact the admission office at the educational institution they plan to attend for more information.
11.5. West Virginia War Orphan Education Program
Spouses and children of deceased resident wartime veterans are eligible for $1,000 per semester, and no more than $2,000 per year for matriculation fees, room and board, books, supplies, and other necessary living expenses. This amount fluctuates according to the number of applications received each semester. Applicants must be a resident surviving spouse or child (between 16 – 25 years old), enrolled in a post-secondary education or training institution in West Virginia.
The deceased veteran must have designated West Virginia as their state of residence at the time of enlistment and served on active duty in the U.S. Armed Forces and was killed in action or as a result of their wartime service.
11.6. West Virginia Operation Recognition Diploma Program for Wartime Veterans
West Virginia veterans who left high school prior to graduation to serve in the U.S. Armed Forces during World War II, Korea, or Vietnam may be awarded a West Virginia high school diploma.
To be eligible, veterans must have left school before graduating to serve in the U.S. Armed Forces, not received a high school diploma, been discharged under honorable conditions, and served on active duty in the U.S. Armed Forces between September 16, 1940, through December 31, 1946 (World War II); June 27, 1950, through January 31, 1955 (Korean War); or February 28, 1961, through May 7, 1975 (Vietnam Era).
11.7. West Virginia In-State Tuition Rates for Nonresident Veterans, Service Members, and their Dependents
All West Virginia public higher education institutions charge in-state tuition for nonresidents who are using VA education benefits and enroll within three years of their discharge from the U.S. Armed Forces. Veterans must have served at least 90 days in the U.S. Armed Forces to be eligible. In addition, nonresident service members and their dependents who are assigned to a duty location and living in West Virginia are eligible for in-state tuition and fee rates.
11.8. West Virginia Veterans Upward Bound (VUB) Higher Education Assistance for Veterans
VUB offers free assistance to veterans to help them complete a certificate, diploma, or degree program. VUB academic advisors assist veterans with exploring college options, completing applications, applying for VA Education and Veteran Readiness and Employment benefits, applying for financial aid and scholarships, and refresher classes on academic skills.
To be eligible, the veteran must have ended their service in the U.S. Armed Forces in good standing, receive a modest income, and/or neither of their parents earned a bachelor’s degree.
11.9. West Virginia Interstate Compact on Educational Opportunity for Military Children (MIC3)
The purpose of this compact is to remove barriers to educational success imposed on children of military families because of frequent moves and deployment of their parents. This includes facilitating prompt enrollment, ensuring they are not disadvantaged due to difficulty in transferring educational records, and facilitating student placement.
11.10. West Virginia Purple Star Award for Military-Friendly Schools
The West Virginia Purple Star Award recognizes schools that show a major commitment to students and families connected to the U.S. Armed Forces.
For a school to qualify for the Purple Star Award, they must appoint a school liaison who is specially trained to handle the unique challenges experienced by military families.
12. What West Virginia Military and Veteran Employment Benefits are Offered?
West Virginia provides several employment benefits for veterans, including employment assistance, hiring preferences, and programs to support veterans in agriculture.
12.1. WorkForce West Virginia, Veteran Employment Assistance
Eligible veterans and their spouses may be eligible to receive priority in all employment and training programs, or services offered at WorkForce West Virginia locations that are funded with state or federal funds. Eligible veterans have early access to job listings, career assessment and counseling, resume, cover letter, and interview skills assistance, support services referrals, job placement assistance, information on careers, training, education, and financial aid, job search workshops, labor market information, computers with internet access, help with online job applications, and assistive technology for special needs.
12.2. West Virginia Veterans Hiring Preference for State Employment
Eligible veterans can have up to 10 preference points added to their passing entrance exam scores when applying for state employment.
Five points are added to a final passing examination score of applicants who served on active duty at any time, were a reserve component service member called to active duty service and served for more than 90 days, or were a reserve component service member who entered active duty and received a campaign or expeditionary medal, are a disabled veteran, or completed 24 months of continuous active duty.
An additional five points will be added to the final score of a veteran who received a Purple Heart or is receiving compensation for a service-connected disability. The Purple Heart must be listed on the veteran’s DD214.
12.3. West Virginia Veterans and Heroes to Agriculture Program
The West Virginia Veterans and Heroes to Agriculture program helps veterans, service members, and their families entering or currently working in agriculture, through partnerships with agencies, organizations, and farmers across the state. Members of the program receive opportunities for education, training, scholarships, and mentorship. The Veterans and Heroes to Agriculture Program can provide grants up to $24,000 to organizations that work directly with or provide support to law enforcement, firefighters, emergency medical service, first responders, veterans, active duty service members, and their families within an agricultural capacity. They also offer a scholarship program that can provide up to $600 each fiscal year.
12.4. West Virginia State Employee Leave for Military Service
State employees who are reserve component service members receive 30 days of paid military leave for training and drills. When mobilized to federal active duty, an additional 30 days of paid military leave is provided each time they are mobilized. Employees may continue their State Employee Health Insurance while on state or federal active duty if they continue to pay required premiums. Service members who serve on active duty and receive an honorable discharge will be returned to the same or similar position without loss of pay, status, or efficiency rating.
12.5. Federal Employment Veterans’ Hiring Preferences
By Federal law, veterans who are disabled or who served on active duty in the U.S. Armed Forces during certain specified time periods or in military campaigns are entitled to preference over non-veterans in hiring into the Federal civil service and in retention during reduction in force. Veterans may be entitled to 5 or 10 points included in any scoring process for examination or interviews.
12.6. Uniformed Services Employment and Reemployment Rights Act (USERRA)
USERRA protects civilian job rights and benefits for veterans and members of reserve components. USERRA also protects service member rights and benefits by clarifying the law, improving enforcement mechanisms, and adding Federal Government employees to those employees already eligible to receive Department of Labor assistance in processing claims.
12.7. West Virginia Hilton Honors Military Program
The West Virginia Hilton Honors Military Program helps make the career transition from service in the U.S. Armed Forces to civilian employment easier for current and former service members. The Hilton Honors Military Program provides hotel accommodation for required employment-related travel. Those eligible can receive up to a total of 100,000 hotel points for verifiable employment-related activities.
13. What West Virginia Military and Veteran Unemployment Insurance Benefits Exist?
West Virginia provides unemployment insurance (UI) benefits to eligible workers who are unemployed through no fault of their own.
West Virginia Unemployment Insurance (UI): UI benefits provide temporary financial assistance to workers who are unemployed through no fault of their own. To qualify for UI, applicants must have West Virginia wages during the previous 12 to 18 months and earned at least the minimum amount required, based on West Virginia guidelines. Applicants must be able and available for work each week they are collecting benefits.
14. What West Virginia Military and Veterans Division of Motor Vehicles (DMV) Benefits Are There?
West Virginia offers several DMV benefits for veterans, including veteran designations on driver’s licenses, license plate extensions, and special military and veteran license plates.
14.1. Veteran Designation on West Virginia Driver’s Licenses and ID Cards
Veterans honorably discharged from the U.S. Armed Forces may request a veteran designation on their West Virginia driver’s license or ID cards.
14.2. West Virginia Driver’s License Extension for Service Members
The West Virginia driver’s license of a service member serving in the U.S. Armed Forces is extended until six months after they are separated under honorable circumstances from active duty.
14.3. West Virginia Special Military and Veteran License Plates
Special military and veteran vehicle license plates are provided free to veterans who are recipients of a Specially Adapted Vehicle Grant from the VA, 100% total and permanent service-connected disabled veterans, former prisoners of war, Purple Heart recipients, and Pearl Harbor survivors. All other veteran plates are available for eligible veterans for a one-time fee of $10 in addition to regular license fees. West Virginia offers 40 special military and veteran license plates to honor the service and sacrifice of veterans, retired service members, service members, and family members.
14.4. West Virginia Medal of Honor License Plate
West Virginia offers the Medal of Honor license plate to Medal of Honor recipients.
14.5. West Virginia Purple Heart License Plate
West Virginia offers the Purple Heart license plate to Purple Heart recipients.
14.6. West Virginia Disabled Veteran License Plate
West Virginia offers the West Virginia Disabled Veteran license plate to eligible disabled veterans.
Veterans who are mobility impaired can apply for the West Virginia Disabled Veteran Mobility Impaired license plate. These veterans are required to have a licensed physician certify their application.
14.7. West Virginia Veteran License Plate
West Virginia offers the Veteran license plate to veterans who served in the U.S. Armed Forces. This license plate can be issued for passenger cars, trucks, and motorcycles.
14.8. West Virginia Gold Star Family License Plate
West Virginia offers the Gold Star Family license plate to families of U.S. Armed Forces service members who are killed in the line of duty.
14.9. West Virginia Commercial Driver License (CDL) Even Exchange Program
The West Virginia Even Exchange Program authorizes service members who have certain Military Occupational Specialties or Ratings in the U.S. Armed Forces to use their military experience and training to meet CDL qualification requirements.
15. What West Virginia Military and Veteran Health and Insurance Benefits are Available?
West Virginia provides various health and insurance benefits for veterans, including life insurance, TRICARE Reserve Select, and compensation for National Guard members injured while on state active duty.
15.1. U.S. Department of Veterans Affairs Life Insurance
The VA provides valuable life insurance benefits to veterans, active and reserve component service members, and their families to provide financial security given the extraordinary risks involved in military service.
15.2. TRICARE Reserve Health Insurance
TRICARE Reserve Select is a premium-based plan available worldwide for Selected Reserve (U.S. Armed Forces Reserve and National Guard service members) and their families who meet certain qualifications. This plan provides comprehensive health care coverage when a service member is not on active duty and covered by active duty TRICARE benefits.
15.3. Compensation for West Virginia National Guard Service Members for Injury, Illness, Disability, or Death While on State Active Duty
If a West Virginia National Guard member is injured or becomes ill while serving on state active duty, the state will pay for all necessary medical care. If they cannot go back to their regular employment, the state will continue paying them until they can return to work. The state will also pay funeral and burial expenses if a service member dies while serving on state active duty or as a result of state active duty. In addition, the surviving spouse and children will receive compensation from the state if the service member dies from that injury or illness.
16. What West Virginia Military and Veterans Parks and Recreation Benefits Exist?
West Virginia offers several parks and recreation benefits for veterans, including free hunting and fishing licenses for disabled veterans and prisoners of war, discounts at state parks, and more.
16.1. Free Hunting and Fishing for West Virginia Resident Disabled Veterans and Prisoners of War
Eligible veterans can hunt and fish in West Virginia for free. Veterans are required to file an application with the West Virginia Division of Natural Resources to be eligible.
16.2. Hunting or Fishing Licenses Not Required for West Virginia Resident Active Duty Service Members on Leave
Resident active duty service members are not required to have hunting, trapping, or fishing licenses when they are on leave. Service members must carry leave papers with them while they are hunting, trapping, or fishing.
16.3. West Virginia State Park Discounts for Veterans and Active Duty Service Members
Veterans and active duty service members receive a 10% discount at West Virginia State Parks for all lodge rooms, cabins, and campsites. Veterans and service members should use code Vets10* when making reservations and must present valid military ID or proof of eligibility at check-in. Veterans and active duty service members can also receive 15% off greens fees at Pipestem, Twin Falls, and Cacapon Resort State Park golf courses year-round.
17. What West Virginia Military and Veteran Miscellaneous Benefits are Available?
West Virginia provides various miscellaneous benefits for veterans, including veterans’ homes, nursing facilities, and cemetery services.
17.1. West Virginia Veterans Home
The West Virginia Veterans Home is a 125-bed facility that serves as a convenient and comfortable home in time of need for veterans. The Home is not a treatment facility and cannot care for veterans in need of daily care or skilled assistance.
17.2. West Virginia Veterans Nursing Facility
Located in Clarksburg, the West Virginia Veteran’s Nursing Facility offers 120 beds, including a 20-bed unit dedicated to Alzheimer’s care. The facility prioritizes a warm, appealing, and comfortable environment for West Virginia veterans needing skilled nursing home care. Recently, the West Virginia Department of Veterans Assistance broke ground on the Charles Calvin Rogers State Veterans Nursing Facility in Beckley, West Virginia, which will be a 120-bed facility.
17.3. West Virginia Donel C. Kinnard Memorial State Veterans Cemetery
The Donel C. Kinnard Memorial State Veterans Cemetery, located in Institute, West Virginia, provides an honorable, dignified final resting place for service members, veterans, and their eligible family members.
17.4. West Virginia John F. “Jack” Bennett Fund
The Jack Bennett Fund will pay to install grave markers for deceased veterans whose family members or next-of-kin do not meet VA income limits.
18. Where Are The U.S. Department of Veterans Affairs Facilities in West Virginia?
The VA has numerous resources available for veterans and family members. Please see the local location listing for your nearest facility. The VA National Cemetery Administration maintains two national cemeteries in West Virginia.
19. Where Can I Find Military Installations in West Virginia?
There are no active-duty installations in West Virginia. However, the state hosts National Guard and U.S. Army Reserve facilities.
National Guard:
West Virginia Army National Guard
West Virginia Air National Guard
167 th Airlift Wing
130 th Airlift Wing
U.S. Army Reserve (USAR):
Key Takeaways:
- West Virginia generally does not tax disability income, including military disability retirement pay and DIC.
- The state offers numerous tax benefits for veterans, including exemptions on military retired pay and property tax credits.
- Education benefits are available for veterans and their families, including tuition waivers and re-education assistance programs.
- Employment benefits include hiring preferences, assistance programs, and support for veterans in agriculture.
- Various DMV, health, insurance, parks, recreation, and miscellaneous benefits are available to support veterans and their families in West Virginia.
Understanding these benefits can significantly improve the financial well-being of veterans and their families in West Virginia. Visit income-partners.net to explore more opportunities for partnership and income enhancement.
Is West Virginia veteran friendly? West Virginia is considered a veteran-friendly state due to its wide array of benefits and support programs tailored to veterans and their families.
Call to Action:
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FAQ: West Virginia Disability Income and Taxes
1. Is military retired pay taxed in West Virginia?
No, West Virginia does not tax military retired pay.
2. Does West Virginia tax disability income from the VA?
No, military disability retirement pay and Disability Dependency and Indemnity Compensation (DIC) are not taxed in West Virginia.
3. What is the Disabled Veteran Homestead Property Tax Credit in West Virginia?
Honorably discharged disabled veterans with a 90% or greater disability rating from the VA are eligible for an income tax credit for the amount they paid in property taxes for their homestead.
4. Are there education benefits for veterans in West Virginia?
Yes, West Virginia offers numerous education benefits, including tuition waivers, educational encouragement programs, and re-education assistance.
5. What employment benefits are available for veterans in West Virginia?
West Virginia provides employment assistance, hiring preferences, and programs to support veterans in agriculture.
6. How can I get a veteran designation on my West Virginia driver’s license?
Veterans honorably discharged from the U.S. Armed Forces may request a veteran designation on their West Virginia driver’s license or ID cards by providing a copy of their DD214 or other relevant documents.
7. Are there discounts for veterans at West Virginia State Parks?
Yes, veterans and active-duty service members receive a 10% discount at West Virginia State Parks for all lodge rooms, cabins, and campsites, and 15% off greens fees at select golf courses.
8. What is the West Virginia Veterans Home?
The West Virginia Veterans Home is a 125-bed facility that provides a convenient and comfortable home for veterans in need.
9. What is the Donel C. Kinnard Memorial State Veterans Cemetery?
The Donel C. Kinnard Memorial State Veterans Cemetery provides an honorable, dignified final resting place for service members, veterans, and their eligible family members.
10. Does West Virginia offer any assistance for installing grave markers for deceased veterans?
Yes, the Jack Bennett Fund will pay to install grave markers for deceased veterans whose family members or next-of-kin do not meet VA income limits.
