Introduced Version
Senate Bill 595 History
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Key: Green = existing Code. Red = new code to be enacted
Senate Bill No. 595
(By Senators Harrison, White, Hunter and Unger)
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[Introduced March 18, 2005; referred to the Committee
on Finance.]
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A BILL to amend and reenact §11-21-10 of the Code of West Virginia,
1931, as amended, relating to personal income tax; and
changing the low-income exclusion.
Be it enacted by the Legislature of West Virginia:
That section §11-21-10 of the Code of West Virginia, 1931, as
amended, be amended and reenacted to read as follows:
ARTICLE 21. PERSONAL INCOME TAX.
§11-21-10. Low-income exclusion.
(a) Earned income exclusion. -- In the case of an eligible
taxpayer, there shall be is allowed as a deduction from federal
adjusted gross income the amount of his or her earned income
included therein, not to exceed ten thousand dollars, except that
when a husband and wife file separate returns under this article
this exclusion shall not exceed five thousand dollars per separate
return: Provided, That for the taxable year beginning the first day of January, one thousand nine hundred ninety-six the exclusion
provided for in this section shall apply only to earned income
received after the thirtieth day of June, one thousand nine hundred
ninety-six and the amount excluded shall not exceed fifty percent
of the annual low income exclusion amounts set forth in this
subsection
ten thousand dollars for forms with one exemption
claimed; thirteen thousand dollars for forms with two exemptions
claimed; sixteen thousand dollars for forms with three exemptions
claimed; nineteen thousand dollars for forms with four exemptions
claimed; twenty-three thousand dollars for forms with five
exemptions claimed; twenty-six thousand dollars for forms with six
exemptions claimed; twenty-nine thousand dollars for forms with
seven exemptions claimed; or thirty-two thousand dollars for forms
with eight or more exemptions claimed.
(b) "Eligible taxpayer" defined. -- The term "eligible
taxpayer" means:
(1) Any unmarried individual and any husband and wife filing
a joint return under this article who has or have federal adjusted
gross income of ten thousand dollars for forms with one exemption
claimed; thirteen thousand dollars for forms with two exemptions
claimed; sixteen thousand dollars for forms with three exemptions
claimed; nineteen thousand dollars for forms with four exemptions
claimed; twenty-three thousand dollars for forms with five
exemptions claimed; twenty-six thousand dollars for forms with six exemptions claimed; twenty-nine thousand dollars for forms with
seven exemptions claimed; or thirty-two thousand dollars for forms
with eight or more exemptions claimed.
(2) Any husband or wife filing a separate return under this
article who has federal adjusted gross income of five thousand
dollars or less ten thousand dollars for forms with one exemption
claimed; thirteen thousand dollars for forms with two exemptions
claimed; sixteen thousand dollars for forms with three exemptions
claimed; nineteen thousand dollars for forms with four exemptions
claimed; twenty-three thousand dollars for forms with five
exemptions claimed; twenty-six thousand dollars for forms with six
exemptions claimed; twenty-nine thousand dollars for forms with
seven exemptions claimed; or thirty-two thousand dollars for forms
with eight or more exemptions claimed.
(c) "Earned income" defined. --
(1) The term "earned income" means:
(A) Wages, salaries, tips and other employee compensation;
plus
(B) The amount of the taxpayer's net earnings from
self-employment for the taxable year (within the meaning of section
1402 (a) of the Internal Revenue Code), but such net earnings shall
be determined with regard to the deduction allowed to the taxpayer
under section 164 of the Internal Revenue Code.
(2) For purposes of this section:
(A) The earned income of an individual shall be computed
without regard to any community property laws;
(B) No amount received as pension or annuity shall be taken
into account; and
(C) No amount received for services provided by an individual
while the individual is an inmate at a penal institution shall be
taken into account.
(d) Taxable year must be full taxable year. -- Except in the
case of a taxable year closed by reason of the death of the
taxpayer, no credit shall be allowed under this section in the case
of a taxable year covering a period of less than twelve months.
NOTE: The purpose of this bill is to change the personal low
income tax exclusion.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.