Deductions | Virginia Tax

Under legislation enacted by the General Assembly, Virginia ‘s date of conformity to the federal tax code will advance to December 31, 2021. See Tax Bulletin 22-1 for more information .
In accession to the deductions below, Virginia police allows for several subtractions from income that may reduce your tax liability .

Standard Deduction

If you claimed the standard deduction on your federal income tax return, you must besides claim the standard subtraction on your Virginia return. Virginia standard deduction amounts are :

Filing Status Description Standard Deduction
1 All Returns – Single $4,500
2 All Returns – Married, Filing Jointly $9,000
3 Form 760 (resident) – Married, filing separate returns $4,500
3 Form 760PY (part-year resident) – Married, filing separate returns $4,500*
3 Form 763 (nonresident) – Married, spouse has no income from any source $4,500
4 Form 760 (resident) N/A
4 Form 760-PY (part-year resident) – Married, filing separately on a combined return $9,000*
4 Form 763 (nonresident) – Married, filing separate returns $4,500

* Part-year residents must prorate the standard subtraction based on their time period of residency. For details, see the instructions for Form 760-PY.

Virginia Itemized Deductions

If you itemize your deductions on your federal income tax recurrence, you must besides itemize them on your Virginia hark back. Complete the Virginia Schedule A, and attach it to your hark back. You can claim most of the lapp deductions on your Virginia return that you did on your union schedule A .
Part-Year Residents
Part-year residents should complete the calculation using only the deductions paid for while Virginia residents .
Married Couples Filing Separate Returns
If you filed a joint federal income tax return, but your Virginia filing status is married, filing individually, you ’ ll need to divide your deductions between both spouses. by and large, you can claim the deductions you personally paid for. If you can ’ t individually history for the deductions, you can allocate them based on the share of income for each spouse. For exercise, if your federal adjust gross income ( FAGI ) represents 25 % of the couple ‘s articulation FAGI, then you may claim 25 % of the total enumerate deductions from federal Schedule A .

Other Deductions

Child and Dependent Care Expenses

You may claim this tax write-off on your Virginia return if you were eligible to claim a credit for child and dependent wish expenses on your federal restitution. Enter the sum on which the federal credit for child and dependant care is based. ( This is the amount on federal form 2441 that is multiplied by the decimal measure – up to $ 8,000 for one dependent and $ 16,000 for 2 or more ). Do not enter the federal credit amount .
If you were unable to claim this deduction on your federal return because your adjust crying income exceeded the maximum sum allowed, you may even claim it on your Virginia return .
Example:  Jon and Mary have three children in day care. Both their incomes exceed the maximum union child worry expense come of $ 6,000. Their actual child care expenses were $ 4,000. therefore, on their federal return key, their child concern credit was based on $ 4,000 ( from line 6 of Form 2441 ) .
Based on the information from human body 2441, Jon and Mary will subtract $ 4,000 on their Virginia retort – the expenses on which they based their accredit .
Tip: The sum of employment-related expenses that may be subtracted is limited to the sum actually used in computing the union credit for child and dependent care expenses. As a general rule, you are limited to a maximum of $ 3,000 for one child and $ 6,000 if you are claiming the expenses for two or more dependents, or the gain income of the spouse having the lowest income, whichever is less .
Caution: Filers frequently deduct their federal credit measure by err, which results in a much lower deduction. Be certain to use the stipulate expense come for your Virginia subtraction .

Foster Care Deduction

Foster parents may claim a discount of $ 1,000 for each child residing in their home under permanent foster care, as defined in the Code of Virginia, provided that they claim the foster child as a dependent on their federal and Virginia income tax returns .

Bone Marrow Screening Fee

enter the come of the fee paid for an initial screen to become a potential bone marrow donor, provided you were not reimbursed for the fee and did not claim a subtraction for the fee on your federal return.

Virginia College Savings Plan Prepaid Tuition Contract Payments and College Savings Trust Account Contributions

If you are under old age 70 on or before Dec. 31 of the taxable class, enter the lesser of $ 4,000 or the sum contributed during the taxable year to each Virginia529 account ( Virginia 529 prepay, Virginia 529 invest, College America, CollegeWealth ). If you contributed more than $ 4,000 per account during the taxable year, you may carry forward any undeducted amounts until the contribution has been fully deducted. however, if you are senesce 70 or older on or before Dec. 31 of the taxable class, you may deduct the stallion amount contributed during the taxable year. entirely the owner of record for an report may claim a discount for contributions made .

Continuing Teacher Education

A accredited primary or secondary coil educate teacher may enter a deduction adequate to 20 % of unreimbursed tuition costs incurred to attend continuing teacher education courses that are required as a discipline of employment, provided these expenses were not deducted from federal adjusted gross income .

Long-Term Health Care Premiums

enter the amount of premiums paid for long-run health manage insurance, provided you did not claim a discount for long-run health wish indemnity premiums on your federal return. The Virginia deduction for long-run health care indemnity premiums is completely disallowed if you claimed a federal income tax subtraction of any measure for long-run health care policy premiums paid during the taxable class .

Virginia Public School Construction Grants Program and Fund

enter the come of total contributions to the Virginia Public School Construction Grants Program and Fund, provided that you have not claimed a deduction for this total on your federal income tax return .

Tobacco Quota Buyout

Allows a deduction from taxable income for payments received in the preceding year in accordance with the Tobacco Quota Buyout Program of the American Jobs Creation Act of 2004 to the extent included in union adjust crude income. For example, on your 2020 Virginia return you may deduct the parcel of such payments received in 2019 that is included in your 2019 federal adjusted gross income ; while payments received in 2020 may generate a deduction on your 2021 Virginia return. Individuals can not claim a subtraction for a payment that has been, or will be, subtracted by a corporation unless the subtraction is shown on a Schedule VK-1 you received from an S-corporation. If you chose to accept payment in installments, the derive from the installation received in the precede class may be deducted. If, however, you opted to receive a individual payment, 10 % of the advance recognized for union purposes in the year that the requital was received may be deducted in the follow year and in each of the 9 succeeding taxable years .

Sales Tax Paid on Certain Energy Efficient Equipment or Appliances

Allows an income tax deduction for 20 % of the sales tax paid on certain energy efficient equipment or appliances, up to $ 500 per class. If filing a joint return, you may deduct up to $ 1,000 .

Organ and Tissue Donor Expenses 

Allows a deduction for unreimbursed expenses that are paid by a living organ and tissue donor that have not been taken as a medical discount on the taxpayer ‘s federal income tax render. The total of the subtraction is the lesser of $ 5,000 or the actual amount paid by the taxpayer. If filing a joint recurrence, the deduction is limited to $ 10,000 or the actual come paid .

Charitable Mileage

Enter the deviation between 18 cents per mile and the charitable mileage subtraction per nautical mile allowed on federal Schedule A. If you used actual expenses for the charitable mileage discount, and those expenses were less than 18 cents per mile, then you may use the difference between actual expenses and 18 cents per mile .

Virginia Bank Franchise Tax

A stockholder of a bank may be required to make certain adjustments to his or her union adjusted gross income. such adjustments are required only if the stockholder invests in a bank that ( 1 ) is subject to the Virginia Bank Franchise Tax for submit tax purposes ( Va. Code § 58.1-1207 ) and ( 2 ) has elected to be taxed as a modest commercial enterprise corporation ( S pot ) for federal tax purposes. Complete the worksheet below to determine the measure of your adjustment .
Computation of Virginia Bank Franchise Tax Deduction
A stockholder of a deposit may be required to make sealed adjustments to his or her union adjust megascopic income. Complete the worksheet below to determine the total of your adjustment .

  1. If your allocable share of the income or gain of the bank was included in federal adjusted gross income, enter the amount here _____________________
  2. If your allocable share of the losses or deductions of the bank was included in federal adjusted gross income, enter the amount here. _____________________
  3. Enter the value of any distributions paid or distributed to you by the bank to the extent that such distributions were excluded from federal adjusted gross income. _____________________
  4. Add line b and Line c. _____________________
  5. Subtract line d from line a. This is your net deduction amount. If this amount is negative you must enter the amount on Schedule ADJ, line 8a and fill in the box marked “LOSS”. _____________________
Income from Dealer Disposition of Property

Allows an alteration for certain income from dealer dispositions of property made on or after Jan. 1, 2009. In the year of inclination the alteration will be a subtraction for advance attributable to installment payments to be made in future taxable years provided that ( one ) the gain arises from an installment sale for which federal law does not permit the dealer to elect installment report of income, and ( two ) the principal elects installment treatment of the income for Virginia purposes on or before the due date prescribed by law for filing the taxpayer ‘s income tax restitution. In subsequent taxable years the adjustment will be an summation for derive attributable to any payments made during the taxable year with esteem to the inclination. In the years following the class of inclination, the taxpayer would be required to add back the measure that would have been reported under the installment method. Each disposal must be tracked individually for purposes of this alteration .

Prepaid Funeral, Medical, and Dental Insurance Premiums

You may be allowed a subtraction of payments for ( i ) a prepay funeral indemnity policy that covers you or ( two ) checkup or dental policy premiums for any person for whom you may claim a subtraction for such premiums under federal income tax laws. To qualify for this deduction, you must be senesce 66 or older with gain income of at least $ 20,000 for the taxable year and federal adjusted gross income not in excess of $ 30,000 for the taxable year. The discount is not allowed for any part of premiums for which you have been reimbursed, have claimed a deduction for federal income tax purposes, have claimed another Virginia income tax deduction or subtraction, or have claimed a federal income tax citation or any Virginia income tax credit.

ABLEnow Account Contributions

Effective for taxable years beginning on or after January 1, 2016, you may claim a tax write-off for the measure contributed during the taxable year to an ABLEnow account entered into with the Virginia College Savings Plan. No deduction is allowed if such contributions are deducted on the subscriber ’ s federal income tax fall. If the contribution to an ABLEnow history exceeds $ 2,000 the remainder may be carried ahead and subtracted in future taxable years until the come has been amply deducted ; however, in no consequence shall the measure deducted in any taxable year exceed $ 2,000 per ABLEnow account. Deductions are subject to recapture in the taxable year or years in which distributions or refunds are made for any reason other than ( one ) to pay qualified disability expenses ; or ( two ) the benefactive role ’ sulfur death. A contributor who is 70 or older is allowed a subtraction for the entire come contributed to an ABLEnow explanation, less any amounts previously deducted..
If you were not allowed to deduct business interest on your federal income tax return due to §163 ( joule ) of the Internal Revenue Code, you may be able to subtract 20 % of it on your Virginia income tax return .


Enclose an explanation for other deductions.

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