Eliminating income tax on qualified tipped wages

SB 120 would allow West Virginia residents who receive tips in their job (such as servers or bartenders) to deduct those tips from their state income tax. The bill defines "qualified tips" as cash, credit card, or check tips reported to an employer, and creates a state tax deduction for these amounts. This deduction would lower taxable income for state tax purposes but only applies to tips not already deductible under federal tax rules. The change would take effect for tax years beginning January 1, 2027.