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To the Editor,
In regard to West Virginia resident retirees of Weirton Steel/National Steel who are currently receiving pensions from the Pension Benefit Guaranty Corporation (PBGC)
The West Virginia Legislature, through Senate Bill 487, has extended the personal income tax modification until Tax Year 2028, to retirees receiving pensions from the PBGC that are being paid a reduced maximum benefit. The modification can be found on line 44 of the West Virginia Personal Income Tax Return IT-140, and was originally enacted by West Virginia to address retirees of Weirton Steel through the Tax Year 2023. This has now been extended to include tax years 2024-2028.
The modification is permitted to reduce West Virginia adjusted gross income for each tax year by taking the difference of the amount your pension would have been (full pension without PBGC takeover) and the amount that you actually receive (reduced) from the PBGC. The PBGC mailed letters to the retirees stating how the reduced pension was calculated. You will need this letter as the basis for the modification.
Be sure that your local tax preparers are aware of this possible modification. The State of West Virginia permits filing amended returns back three years; and going forward, you should definitely add the PBGC letter to your tax paperwork; or if you file your own taxes, review instructions for line 44.
Darla Phillips
Retired CPA
Weirton