Below you will find a list and description of additional deductions available for your Virginia tax return. Select all that apply and enter the corresponding amounts in the space provided.
Child and Dependent Care Expenses
This deduction may only be claimed if you were eligible to claim a credit for child/dependent care expenses on the federal return. The program will automatically enter the amount on Form 2441, line 6.
Foster Care Deduction
If you claim your foster child as a dependent on your return and the child resides in your home under permanent foster care, you may claim a deduction for $1,000 for each foster child.
Bone Marrow Screening Fee
Fee paid for the initial screening to become a bone marrow donor. You cannot have taken a deduction on the federal return or have been reimbursed for the fee to claim this deduction.
Virginia College Savings Plan Prepaid Tuition Contract Payments and Savings Account Contributions (529 plan)
Taxpayers under age 70 at the end of the tax year may deduct the lesser of $4,000 or the amount contributed to each Virginia529 account. If you contributed more than $4,000 per account during the year, the remaining amount may be carried forward until the contribution has been deducted fully. If you are over age 70,at the end of the tax year you may deduct the contribution fully in the year it was contributed.
Continuing Teacher Education
Licensed primary and secondary teachers may deduct 20% of unreimbursed tuition costs for attending continuing education courses required as a condition of employment. The expenses must not have been deducted on the federal return.
Long-Term Health Care Premiums
Amount of premiums paid for long-term health care insurance that were not included as a deduction on your federal income tax return.
Virginia Public School Construction Grants Program and Fund
Amount of contributions to the Virginia Public School Construction Grants Program and Fund that were not claimed as a deduction on your federal income tax return.
Tobacco Quota Buyout
Deduction for payments received in the preceding year in accordance with the Tobacco Quota Buyout Program of the American Jobs Creation Act of 2004 (if included in federal adjusted gross income).
If you received the payment in installments, enter the amount you receive in the previous year. However, if you chose to receive a single payment, divide the payment by 10 and claim it equally over ten years.
Sales Tax Paid on Certain Energy Efficient Equipment or Appliances
Deduction for 20% (up to $500 per year - joint return deduction up to $1,000) of the sales tax paid on certain energy efficient equipment or appliances.
Organ and Tissue Donor Expenses
Deduction for unreimbursed expenses paid by a living organ and tissue donor that have not been taken as a medical deduction on the taxpayer’s federal income tax return. The amount of the deduction is the lesser of $5,000 ($10,000 if Married filing joint) or the actual amount paid by the taxpayer.
Difference between 18 cents per mile and the charitable mileage deduction per mile allowed on Virginia Schedule A.If you used actual expenses and they were less than 18 cents per mile, then you may use the difference between actual expenses and 18 cents per mile.
Virginia Bank Franchise Sub chapter S Corporation
Certain shareholders of small businesses may be able to deduct the gain or add the loss of the S Corporation. Complete the worksheet in the VA instructions to determine the amount of your adjustment. Attach supporting documentation by uploading the PDF in the State Section of the return.
Income from Dealer Disposition of Property
Allows an adjustment for certain income from dealer dispositions of property made on or after January 1, 2009. In the year of disposition the adjustment will be a subtraction for gain attributable to installment payments to be made in future taxable years provided that (i) the gain arises from an installment sale for which federal law does not permit the dealer to elect installment reporting of income, and (ii) the dealer elects installment treatment of the income for Virginia purposes on or before the due date prescribed by la w for filing the taxpayer’s income tax return. In subsequent taxable years the adjustment will be an addition for gain attributable to any payments made during the taxable year with respect to the disposition. In the years following the year of disposition, the taxpayer would be required to add back the amount that would have been reported under the installment method. Each disposition must be tracked separately for purposes of this adjustment.
Prepaid Funeral, Medical, or Dental Insurance Premiums
Deduction of payments for (1) a prepaid funeral insurance policy that covers you or (2) medical or dental insurance premiums for any person for whom you may claim a deduction under federal income tax laws. To qualify for this deduction, you must be age 66 or older with earned income of at least $20,000 for the year and federal adjusted gross income not in excess of $30,000 for the year. The deduction is not allowed for any portion of premiums that have been reimbursed or claimed as a deduction/subtraction or credit on the federal or Virginia return.
ABLE Savings Trust Account Contributions
For taxable years beginning on or after January 1, 2016,you may be able to claim a deduction for the amount contributed (not to exceed $2,000) during the year to an ABLE savings trust account with the Virginia College Savings Plan. No deduction is allowed if the contribution is deducted on the federal income tax return. Contributions that exceed $2,000 may be carried forward and subtracted in future taxable years until the amount has been fully deducted.
Business Interest Deduction
For taxable years after January 1, 2018, Virginia conformed to the federal business interest limitation pursuant to the Internal Revenue Code. Virginia will allow individuals to claim a deduction of 20% of business interest disallowed for federal purposes. If claiming this deduction, enclose a copy of federal Form 8990 (Not Supported).
Business Interest Deduction Recovery
For taxable years after January 1, 2018, Virginia allowed taxpayers to claim a 20% deduction of business interest that for federal purposes was disallowed. If in the future the 20% deduction is allowed on the federal return it must be recovered on Schedule ADJ.
If you select Other deduction, you are required to enter the deduction amount and provide a description of the other deductions in the space provided.
The following entries show as deductions on your return. Please note the Code number on the item, as this will appear on your VA 760-CG under Deductions
Child and Dependent Care Expenses - Code 101
You may claim this deduction on your Virginia return only if you were eligible to claim a credit for child and dependent care expenses on your federal return. Pulls automatically from Federal return.
Foster Care Deduction – Code 102
Foster parents can claim up to $1,000 for each foster child permanently residing in their home and claimed as a dependent on the federal return.
Bone Marrow Screening Fee –Code 103
You may claim a deduction for the initial bone marrow screening fee if you were not reimbursed or did not claim a deduction on the federal return.
Virginia 529 Account Contributions –Code 104
Individuals under age 70 (on or before December 31 of the current year) may claim the lesser of $4,000 or the amount paid for contributions into the Virginia529 account. If you paid more than $4,000, you may carry the amount forward until fully deducted. Individuals over age 70(on or before December 31 of the current year), may deduct the entire amount contributed during the tax year.
Continuing Teacher Education –Code 105
If you are a licensed primary or secondary school teacher, you may claim a deduction equal to 20% of unreimbursed tuition costs for continuing education courses required by your job. If you claimed a deduction on your federal return, you may not claim this deduction also.
Long-Term Health Care Premiums –Code 106
You may claim a deduction of your long term health care insurance premiums if you did not claim a deduction on the federal return.
Virginia Public School Construction Grants Program and Fund –Code 107
You may claim a deduction for the contributions made to the Virginia Public School Construction Grant if you did not claim a deduction on the federal return.
Tobacco Quota Buyout –Code 108
You may deduct payments received in the preceding year to the extent they were included in federal income.
Sales Tax Paid on Certain Energy Efficient Equipment or Appliances –Code 109
You may deduct 20% of the sales tax paid on the purchase of energy efficient equipment or appliances.
Organ and Tissue Donor Expenses – Code 110
As a living donor or tissue donor you may deduct up to $5000 for unreimbursed expenses paid as long as you have not claimed the expenses as a deduction on your federal return. If filing a joint return, the deduction is limited to $10,000.
Charitable Mileage –Code 111
You may claim the difference between 18 cents per mile and the federal charitable mile deduction claimed on the federal return.
Virginia Bank Franchise Subchapter S Corporation –Code 112
A shareholder of a bank may be required to make certain adjustments to his or her federal adjusted gross income. Such adjustments are required only if the shareholder invests in a bank that (1) is subject to the Virginia Bank Franchise Tax for state tax purposes (see Va. Code § 58.1-1207) and (2) has elected to be taxed as a small business corporation (S corporation) for federal tax purposes. Please visit here for information. Attach PDF of supporting documents within the program.
Income from Dealer Disposition of Property- Code 113
You may be able to claim a deduction for property sold using the installment agreement. Visit the VA Instructions for complete rules.
Prepaid Funeral, Medical, or Dental Insurance Premiums - Code 114
If you have a prepaid funeral insurance policy that covers you or medical/dental premiums for any person you claim a deduction for on your federal return, you may be allowed a deduction on the state return for the premiums. You must be 66 years of age or older, have earned income of at least $20,000 and federal adjusted gross income no more than $30,000 for the year. You may not claim this deduction if you have claimed a deduction your federal return, been reimbursed, claimed a federal or Virginia tax credit.
ABLE Savings Trust Account Contributions (ABLEnow )- Code 115
Beginning January 2016, you may claim a deduction for amounts contributed during the tax year to an ABLEnow account. If the contributions are claimed on the federal return, you may not claim the deduction on your state return. Contributions are limited to $2000. Any excess may be carried forward until fully deducted.
Business Interest Deduction - Code 116
For taxable years after January 2018, individuals are allowed to take a 20% deduction of business interest that had been disallowed for federal purposes. If claiming this, you must include a copy of federal form 8990 (not supported).
Business Interest Deduction Recovery - Code 117
If in a later year the interest of the business interest deduction is then allowed to be claimed on your federal return, it must be recovered on your Virginia return.
Other- Code 199
Include an explanation for other deductions