Interest or dividends exempt from federal income tax but taxable in Virginia, is added to the Virginia return under the:
- State Section
- Additions to Income
- Other Additions
- Add Other Additions
- Choose "Interest and Dividend Income on Exempt US Obligations" from the drop-down menu
What income from US Obligations is taxable to Virginia?
The following income from US Obligations are considered taxable by the state of Virginia.
- Federal Home Loan Mortgage Corporation
- Federal National Mortgage Association
- Government National Mortgage Association
- Inter-American Development Bank
- International Bank for Reconstruction and Development
How do I subtract interest not taxable to Virginia?
If you have interest on a US Government Obligation included in your federal tax return that is not subject to tax in Virginia, enter the amount that should be exempt by visiting:
- State Section
- Subtractions from Income
- Interest on US Government Obligations
What income from US obligations is not taxable to Virginia?
Income from the following organizations is not taxable to Virginia:
- Tennessee Valley Authority
- Federal Deposit Insurance Corporation
- Federal Home Loan Bank
- Federal Intermediate Credit Bank
- Governments of Guam, Puerto Rico & Virgin Islands
- US Treasury bills, notes, bonds and savings bonds
- Federal Land Bank
- Federal Reserve Stock
- Farm Credit Bank
- Export-Import Bank of the US
- US Postal Service
- Resolution Trust Corporation