State & Local Tax Impacts of COVID-19 for West Virginia – 2021

Thoughtware Alert Published: May 03, 2021 | Updated: Jun 08, 2021

Information current as of April 30, 2021.

COVID-19 has changed life across the globe. Many taxing jurisdictions are taking mitigating actions to create social distance and aid taxpayers. The following is a running list of actions by jurisdiction, which generally result in additional time to file and/or pay. Further, many jurisdictions have closed their offices to in-person use by taxpayers and suspended their audit and administrative functions. This alert doesn’t cover similar waivers from local-level taxing authorities. These developments continue to quickly evolve; check with your BKD Trusted Advisor or visit our COVID-19 Resource Center for current information as needed.

Information Specific to West Virginia

  • West Virginia confirmed that it has fully conformed to all federal tax law changes made in 2020 affecting state taxable income including the Coronavirus Aid, Relief, and Economic Security Act; Families First Coronavirus Response Act; Setting Every Community Up for Retirement Enhancement Act; and the 2021 Consolidated Appropriations Act. No adjustments need to be made to 2020 tax year returns related to these federal tax law changes.
    • West Virginia DOR Website, March 1, 2021.
  • West Virginia announced an extension of the individual income tax filing deadline to May 17. Taxpayers don’t need to file any forms or call the West Virginia Tax Department to qualify for this extension. The relief doesn’t apply to estimated tax payments that are due on April 15.
    • West Virginia Governor’s Office, News Release; March 18, 2021.
    • West Virginia DOR, Administrative Notice No. 2021-16; March 19, 2021.
  • West Virginia legislation adopts an income tax withholding exclusion for compensation paid to a nonresident if 1) it’s paid for services performed in West Virginia on 30 or fewer days in the calendar year; 2) the nonresident performed services in more than one state during the calendar year; and 3) the nonresident’s state of residence provides a substantially similar exclusion or doesn’t impose an individual income tax. The withholding exclusion also applies if the U.S. Constitution or a federal statute exempts the nonresident’s income from West Virginia taxation. The exclusion doesn’t apply to compensation paid to professional athletes, professional entertainers, or public figures. If the number of days an employee spends performing services in West Virginia exceeds the 30-day threshold, the employer must withhold and pay tax for every day in that calendar year, including the first 30-day measurement period.
    • West Virginia H.B. 2026, effective for tax years beginning on January 1, 2022.
  • West Virginia legislation updates the personal income tax IRC conformity to federal income tax law made after December 31, 2019, and before March 12, 2021. Therefore, the update adopts federal changes for the 2020 tax year that are set forth in the American Rescue Plan Act of 2021
    • West Virginia S.B. 693, effective April 2, 2021, and retroactive to match federal provisions.

For more information, reach out to your BKD Trusted Advisor or use the Contact Us form below.

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