What Are the Income Law Requirements in The State of West Virginia?
If you are earning an income in the state of West Virginia, you are expected to pay income tax. In the United States, different states have different income tax rates. Also, the types of taxes that individuals have to pay are different from state to state. Tax rates differ according to individuals and corporations.
In most USA states, businesses and companies are expected to pay corporate income tax. The personal income tax slabs include sole proprietorship, S corporations, limited liability companies (LLCs), and partnerships. Different states have different tax rates and tax laws for corporates and individuals’ income tax.
This article deals with income tax laws and requirements in the state of West Virginia.
Corporate net income tax in West Virginia
Any domestic or foreign corporation in the state of West Virginia that is not exempt, that is engaged in business or derives an income from property, from performing some activities or from other sources in the state of West Virginia is liable to pay corporation net income tax.
West Virginia taxable income is computed using the corporation’s federal taxable income slab as the starting point. The tax rate is 6.5%.
Every corporation in West Virginia whose taxable income is reasonably expected to exceed $10,000, is liable to make tax payments. Tax payments should be done by the 15th day of April, June, September, and December of each year.
- Every resident individual, estate, and trust is liable to pay personal income tax in the state of West Virginia.
- Sole proprietors and those who are self-employed and who are not liable to pay business taxes will have to pay tax on their income from business as long as the income can be included in the federal adjusted gross income.
- Trusts, estates and non-resident individuals are also liable to pay tax on any income made from any West Virginia sources.
- Taxable income gained in the state of West Virginia that is under $10,000 is subject to marginal income tax rates starting from 3%. Taxable income earned that is more than $60,000 is subject to marginal income tax starting from 6.5%.
- Residents of West Virginia have to make their tax payments on the 15th of April, 15th of June and 15th of September of the tax year, and then in January of the following year.
- From the 1st of January, 2015, if an individual has made a total income tax payment of $100,000 during the period July 1st to June 30th, he will have to pay his taxes electronically and file his income tax returns online.
Sales and use taxes in West Virginia
In accordance to the provisions of the West Virginia consumers’ sales and service tax and use tax, vendors are required to collect a tax from purchasers and accordingly pay the same tax to the West Virginia State Tax Department.
This tax is imposed on the rental, lease or sale of all personal and tangible property as well as specific services. Food and food ingredients meant for “human consumption” does not attract this tax. Unless the West Virginia laws establish exemption laws, all types of sales are presumed to be subject to sales and use tax.
Vendors who do not collect this tax from the purchasers will be personally liable themselves for the payment of the tax. The West Virginia State Sales tax rate is currently 6%.
Excise taxes in West Virginia
The State of West Virginia imposes excise taxes on the manufacturing of certain products. Excise taxes are paid by distributors and manufacturers of products manufactured and distributed in the state of West Virginia. The tax is added to the respective product sales prices.
West Virginia state excise taxes are imposed on the following products –
- gasoline and special fuels,
- tobacco products,
- soft drinks, and
- soft drink syrups and powders.