Listed below are types of income that the District of Columbia will allow you to subtract on your return:
Military Spouse Relief Act
If a service member's legal residence for taxes is not in DC but the service member and spouse reside in DC due to military orders, the military compensation and the non-military spouse's compensation should be deducted.
Income on D.C Franchise or Fiduciary Return
If the income reported on your federal return included income reported and taxed on a DC franchise or DC fiduciary return, you may subtract that amount.
DC and Federal Government Survivor Benefits
You may subtract survivor benefits received as an annuitant survivor and are 62 years of age or older. (DO NOT include Social Security benefits)
Disability Income Exclusion (Form D-2440)
If disability payments were included in your federal gross income, you may be able to claim an exclusion for them on your DC return.
Interest and Dividends from Form 8814
Enter any interest or dividend income obtained from form 8814.
Employment Discrimination Awards
Enter any awards, other than front pay and back pay, received because of unlawful employment discrimination.
Paid to DC College Savings Plan This Year
Up to $4,000 subtraction ($8,000 if MFJ)
Exclusion for DC Disabled Residents
Up to $10,000 subtraction
DC Teacher Expenditures & DC Teacher Tuition and Fees
(up to $500 for teacher; up to $1,500 for tuition; both for joint filers)
Loan Repayment Awards for Health Care Professionals
Loan repayment awards of up to $120,000 paid over four years by DC to healthcare professionals to reduce their medical education debt are not taxed by DC.
Health-Care Premiums Paid for Non-employee Domestic Partner
Any healthcare insurance premium paid by an employer for an employee’s domestic partner registered with the Vital Records Division of the DC Department of Health or same sex spouse is deductible (must be a registered domestic partner).
DC Poverty Lawyer Loan Assistance
Lawyers that are eligible for this award are those whose legal practice has been certified by the DC OAG as serving the public interest.
Taxable refunds, credits or offsets of state and local income tax
If you have entered your state refund, credits or offsets as taxable on your federal return, you may enter it as a subtraction on your DC return.
Enter any other subtractions that are taxable on your Federal return but not taxable to DC by following the steps below:
- State Section
- Subtractions from Income
For additional information, click here.