How SSDI Income Is Taxed on Your West Virginia State Return

West Virginia does not tax Social Security Disability Insurance (SSDI) income on your state return

If you receive SSDI payments, you do not report that income to West Virginia when you file your state tax return. West Virginia's tax code excludes all Social Security benefits—including SSDI, Supplemental Security Income (SSI), and retirement benefits—from state taxable income. This means your SSDI payments are not subject to West Virginia state income tax, regardless of how much you receive or what other income you have.

However, this does not mean SSDI is tax-free everywhere. The federal government may tax your SSDI depending on your total income, even though West Virginia will not. You still need to file a federal return if your income crosses certain thresholds, and you may owe federal tax on a portion of your benefits. West Virginia's exemption applies only to state tax.

The key distinction: West Virginia looks only at your SSDI and says no state tax. The IRS looks at your SSDI plus all other income and may say yes to federal tax. Both can be true at the same time.

Key Takeaways

West Virginia does not tax SSDI payments on your state income tax return, even if you have substantial other income.
Federal tax on SSDI is separate and depends on your combined income from all sources, not just your SSDI.
You may owe no West Virginia tax but still owe federal tax on the same SSDI income.
Other income you receive—wages, pensions, interest, rental income—is still taxable to West Virginia and counts toward federal SSDI taxation thresholds.
If you file a federal return, you report SSDI on Form SSA-1099 or Form SSA-1042S, but you do not include it on your West Virginia return.

How West Virginia treats SSDI on your state return

West Virginia Code §11-21-12 exempts all Social Security benefits from state income tax. This includes SSDI, retirement benefits, and SSI. When you file your West Virginia return, you do not enter your SSDI payments as income. If you use tax software, the program may ask about Social Security income; you report the amount for federal purposes, but West Virginia's software will automatically exclude it from your state taxable income.

This exemption is automatic. You do not need to claim it, file a separate form, or prove anything. If you report SSDI on your federal return, West Virginia straightforward does not tax it. The exemption applies whether you are filing as single, married filing jointly, married filing separately, or head of household.

If you are filing a paper return using West Virginia Form IT-140, you may see a line for Social Security income. You can leave it blank or enter zero for West Virginia purposes. The form itself will guide you, but the rule is straightforward: SSDI does not count toward West Virginia taxable income.

Federal tax on SSDI is separate from West Virginia tax

Even though West Virginia does not tax SSDI, the IRS does—under certain conditions. The federal government uses a formula based on your "combined income," which includes half of your SSDI plus all other income (wages, pensions, interest, rental income, and other benefits). If your combined income exceeds a threshold, up to 50% or 85% of your SSDI becomes taxable at the federal level.

The thresholds are: $25,000 for single filers and $32,000 for married couples filing jointly. These thresholds have not changed since 1984 and do not adjust for inflation. If your combined income is below these amounts, you owe no federal tax on your SSDI. If it exceeds them, the IRS taxes a portion of your benefits.

West Virginia's exemption does not affect this federal calculation. You may owe federal tax on SSDI while owing zero to West Virginia. When you file your federal return, you report your SSDI on Form SSA-1099 (or Form SSA-1042S if you are a noncitizen). You do the same calculation for West Virginia purposes, but then you subtract the SSDI from your taxable income before calculating what you owe the state.

What other income counts toward federal SSDI taxation

The federal formula for taxing SSDI includes income from many sources. Wages, self-employment income, pensions, annuities, interest, dividends, capital gains, rental income, and royalties all count. Tax-exempt interest (such as from municipal bonds) also counts for this purpose, even though it is not taxable income itself. Unemployment benefits, workers' compensation, and certain other payments may count depending on your state and the type of payment.

SSDI itself does not count toward the threshold—only half of it does. So if you receive $1,200 per month in SSDI ($14,400 per year) and $20,000 in wages, your combined income is $27,200 (half of $14,400 plus $20,000). That exceeds the $25,000 single threshold by $2,200, so a portion of your SSDI becomes taxable federally.

West Virginia income tax is calculated on your federal adjusted gross income (AGI) minus the SSDI exclusion. So the same other income counts toward your West Virginia return, but SSDI is removed before calculating what you owe the state. This means you could owe federal tax on SSDI while owing no West Virginia tax, if your other income is low enough.

Filing your West Virginia return when you receive SSDI

You must file a West Virginia return if your income exceeds the filing threshold for your filing status. West Virginia's threshold is based on federal AGI. For 2024, the threshold is $12,950 for single filers and $25,900 for married couples filing jointly (these amounts may change yearly). SSDI is not included in this calculation, so you count only your other income.

If you have wages, a pension, or other taxable income above the threshold, you file. If you have only SSDI and no other income, you do not file a West Virginia return. However, you may still need to file a federal return depending on your combined income and the federal thresholds mentioned above.

When you file, you report your other income normally. If you use tax software, enter your SSDI when prompted for federal purposes, but the software will handle the West Virginia exclusion automatically. If you file by paper, leave SSDI off the West Virginia form entirely. Your tax liability to West Virginia is based only on your non-SSDI income.

If you receive both SSDI and SSI

Some people receive both SSDI and SSI (Supplemental Security Income). West Virginia excludes both from state tax. SSI is a needs-based program run by the Social Security Administration, and West Virginia treats it the same way as SSDI—no state tax.

Federally, SSI is not taxable income at all. The IRS does not tax SSI under any circumstances. So if you receive only SSI and no other income, you owe no federal tax and no West Virginia tax. If you receive both SSDI and SSI, only the SSDI portion is subject to the federal combined-income formula.

When you receive both, your Social Security Administration statement will show them separately. Report the SSDI on your federal return using the SSA-1099 or SSA-1042S. Do not report SSI on your federal return at all. On your West Virginia return, report neither one.

Frequently Asked Questions

Do I have to file a West Virginia tax return if I only receive SSDI?

No. SSDI is not counted as income for West Virginia filing purposes. You file only if you have other income (wages, pensions, interest, rental income) that exceeds the state threshold. If SSDI is your only income, you do not file a West Virginia return.

I owe federal tax on my SSDI. Do I also owe West Virginia tax on it?

No. West Virginia does not tax SSDI under any circumstances. You may owe federal tax on a portion of your SSDI if your combined income is high enough, but West Virginia will not tax any of it. These are two separate calculations.

How do I report SSDI on my West Virginia return if I file?

You do not report it. If you use tax software, enter your SSDI for federal purposes, and the software will exclude it from your West Virginia taxable income automatically. If you file by paper, straightforward leave SSDI off the West Virginia form. Report only your other income.

Does West Virginia tax my other income if I receive SSDI?

Yes. Wages, pensions, interest, and other income are taxable to West Virginia normally. SSDI is excluded, but everything else counts. Your West Virginia tax is based on your non-SSDI income only.

What if I live in West Virginia but receive SSDI from another state's program?

SSDI is a federal program, not a state program. You receive the same SSDI regardless of where you live. West Virginia's exemption applies to all SSDI, regardless of where you moved from or where you currently live.

This guide is for general information only and is not medical, financial, legal, or other professional advice. For decisions specific to your situation, consult a qualified professional. See our Editorial Policy.