Relating to modifications reducing federal adjusted gross income related to retirement

West Virginia's SB 496 adds a new tax provision allowing residents to exclude certain retirement income from their state taxable income. Specifically, it exempts payments from federal programs (like Social Security or Railroad Retirement), state retirement systems (including West Virginia Public Employees’ Retirement System), and other state/local pensions from the calculation of taxable income. This applies to retirees and, upon the retiree’s death, to their spouse or designated beneficiary. The change takes effect for tax years beginning on or before January 1, 2027, and does not alter federal tax rules.