state retirees

In Dawson v. Steager the Supreme Court will decide whether states may give some retired state and local government employees a bigger tax break on retirement benefits than retired federal employees.

West Virginia taxes the government-provided retirement income of most local, state, and federal employees. While retired federal employees and most state and local government employees may exempt up to $2,000 of retirement benefits from their taxable income, certain state and local police officers, sheriffs, and firefighters can exempt all of their benefits. This group comprises about two percent of all state government retirees.