Modifications DECREASING Federal AGI
Below is a list of allowable modifications that can be used to decrease your federal adjusted gross income that are not subject to Rhode Island tax. They include:
- Income from obligations of the US government included in federal AGI but exempt from state income taxes
- Rhode Island fiduciary adjustment as beneficiary of an estate or trust
- Elective deduction for new research and development facilities
- Railroad Retirement benefits included in gross income for federal income tax purposes but exempt from state income taxes under the laws of the United States
- Qualifying investment in a certified venture capital partnership.
- Family Education Accounts
- Tuition Saving Program (section 529 accounts) - The maximum modification shall not exceed $500, $1,000 if a joint return
- Exemptions from a tax on profit or gain for writers
- Depreciation that has not been taken for federal purposes because of the bonus depreciation that must be subtracted from Rhode Island income
- Section 179 depreciation that was not taken originally for federal purposes
- Allowable modification for performance based compensation realized by an eligible employee under the Rhode Island Jobs Growth Act
- Modification for Investments in Small Business
- Modification for Tax Incentives for Employers
- Historic Tax Credit income or Motion Picture Production Company Tax Credit or Musical Theater Production Tax Credit income reported on Federal return that is tax exempt
- Contributions to a Scituate Medical Savings Account that are taxable on the federal return, but tax exempt for Rhode Island purposes
- Amounts of insurance benefits for dependents and domestic partners included in Federal AGI.
- Modification for Organ Transplantation for specific unreimbursed expenses incurred by Rhode Island Resident
- Income from the discharge of business indebtedness claimed as income on Federal return and previously claimed as RI income under the American Recovery and Reinvestment Act of 2009 under RIGL §44-66-1
- Deduction for PTE Tax Claimed in Prior Year
- Modification for Taxpayers Receiving Military Service Pensions under RIGL §44-30-12(c)(11)
- Modification for Certain Pensions or Annuities - Modification of up to $20,000
- Active duty military pay of Nonresidents stationed in Rhode Island and income for services performed in Rhode Island by the servicemember's spouse
Program entry
Rhode Island Subtractions from Income can be entered within your account by following the steps below:
- State Section
- Rhode Island Return
- Subtractions from Income