The Jumpstart Savings Program offers unique state tax advantages for West Virginia taxpayers pursuing or practicing a qualifying profession.
- Save on your taxes as you put money away
Any West Virginia taxpayer, including the Account Owner himself or herself, may claim a West Virginia personal income tax deduction of up to $25,000 per tax year for the money he or she puts into a Jumpstart Savings Account. Learn more.
- Save on state taxes as you withdraw money to spend
Qualified distributions that are not federally deductible or reimbursed by an employer can be deducted from the Account Owner’s West Virginia taxable personal income up to $25,000 per tax year. Learn more.
- Recruit & retain a skilled workforce
Employers may be eligible for a non-refundable tax credit of up to $5,000 per taxable year, against either income tax or corporate net income tax for direct contributions into a Jumpstart Savings Account, if the employee is a West Virginia resident and the Beneficiary for the Account. Find more info.
Rollover your savings to and from other state programs
Rollover to ABLE benefit: A modification reducing West Virginia taxable income, in an amount equal to the portion of a distribution from a Jumpstart Savings Account, distributed to the taxpayer in the taxable year, that the taxpayer deposits into a West Virginia ABLE Account within 30 days of receiving said distribution. This modification is only permitted to the extent that the amount is not allowable as a deduction when arriving at the taxpayer’s federal adjusted gross income.
SMART529 rollover benefit: A modification reducing West Virginia taxable income, in an amount equal to the portion of a distribution from a West Virginia SMART529 Account, distributed to the taxpayer in the taxable year, that the taxpayer deposits into a Jumpstart Savings Account within 30 days of receiving the distribution. Any nonqualified distribution from a SMART529 Account may be subject to federal taxes and federal tax penalties. This modification is only permitted to the extent that the amount is not allowable as a deduction when arriving at the taxpayer’s federal adjusted gross income.
Find detailed resources and examples of tax advantages here.
Please remember: Whether state tax benefits are available depends on each taxpayer’s individual circumstances. The information on this website is no substitute for professional tax or legal advice. You should consult with a qualified tax professional and/or legal professional to understand your tax situation and how opening or using a Jumpstart Savings Account affects you. You are responsible for your own tax reporting and for maintaining records needed for tax reporting or a potential tax audit. Jumpstart Savings Program tax benefits are state tax benefits only, and do not affect any person’s federal tax liability or tax liability in a state other than West Virginia.