Below you will find the additions to income required by Virginia and a brief description of each addition. Select the one that applies to your tax return and add the appropriate amounts.
Accumulation Distribution Income Enter the taxable income used to compute the partial tax on an accumulated distribution as reported on federal Form 4970.
Income from Dealer Disposition of Property Enter the amount that would be reported under the installment method from certain dispositions of property. If, in a prior year, the taxpayer was allowed a subtraction for certain income from dealer dispositions of property made on or after January 1, 2009, in the years following the year of disposition, the taxpayer is required to add back the amount that would have been reported under the installment method. Each disposition must be tracked separately.
Interest on Federally Exempt US Obligations
Enter the amount of interest or dividends exempt from Federal income tax, but taxable in Virginia, less any related expenses.
Lump-Sum Distribution Income
If you received a lump-sum distribution from a qualified retirement plan and used the 20% capital gain election, the ten-year averaging option, or both on federal Form 4972, complete the table below:
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Enter the total amount of distribution subject to federal tax. |
1._____________________ |
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Enter the total federal minimum distribution allowance, federal death benefit exclusion and federal estate tax exclusion. |
2._____________________ |
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Subtract Line 2 from Line 1 and enter the amount as your Virginia adjustment addition |
3._____________________ |
Repealed- Telework Expenses - repealed, can no longer be claimed after January 1,2019. Individuals who claim the Virginia Telework Expenses Tax Credit are not allowed to exclude those expenses from Virginia Income. To the extent excluded from federal adjusted gross income, any expenses incurred by a taxpayer in connection with the Telework Expenses Tax Credit must be added to the Virginia return.
First-Time Home Buyer Savings Accounts - To the extent excluded from federal adjusted gross income, an account holder must add any loss attributable to his or her first-time home buyer savings account that was deducted as a capital loss for federal income tax purposes. For more information, see the First-Time Home Buyer Savings Account Guidelines, available in the Laws, Rules & Decisions section of the Department’s website at www.tax.virginia.gov.
Food Crop Donation - To the extent a credit is allowed for growing food crops in the Commonwealth and donating such crops to a nonprofit food bank, an addition to the taxpayer’s federal adjusted gross income is required for any amount claimed by the taxpayer as a federal income tax deduction for such donation.
Other Additions
Enter the amount of any income not included in federal adjusted gross income, which is taxable in Virginia.
