The Virginia Other Subtractions are:
- Military Pay attributable to Active Duty in Combat Zone
- Basic Military Pay
- Virginia National Guard Income
- Federal and State Employees- If you qualify as a federal or state employee and earn less than $15,000 annually from all employment, you may subtract up to $15,000 of the salary earned as a federal or state employee. The subtraction cannot exceed the actual salary received. Each spouse may qualify for the subtraction. If you elect to claim this, you may not claim the Low-Income Credit or Virginia Earned Income Credit.
- Tier 2 and other Railroad Retirement benefits
- Virginia Lottery Prizes
- Virginia College Savings Plan Income Distribution- Amount included in federal adjusted gross income that is attributable to a distribution of benefits or a refund from the Virginia529 or ABLE, in the event of a beneficiary’s death, disability or receipt of scholarship.
- Long Term Capital Gain - If the income is attributable to an investment in a "qualified business" or any other technology business approved by the Secretary of Technology or Secretary of Commerce and Trade. See instructions for full requirements.
- Income from Virginia Obligations - Income from interest on Virginia state bonds or municipal obligations and the gains from sales of those obligations to the extent they were included in your federal adjusted gross income.
- Federal work opportunity tax credit wages - The amount of wages or salaries eligible for the Work Opportunity Tax Credit that was included in your federal adjusted gross income. DO NOT enter the federal credit amount.
- Retirement plan income previously Taxed by Another State - Amount of retirement income received during the tax year on which another state taxed the contributions but were deductible on the federal return. The total amount of this subtraction cannot exceed the amount of the contributions previously taxed by another state, usually in a previous year.
- Income Received by Holocaust Victims
- Medal of Honor Recipients
- Certain Death Benefit Payments - Qualifying payments must meet the following:
- Payment is made pursuant to an annuity contract with an insurance company
- Payment is awarded in a lump sum
- Payment is subject to federal taxation
- Gains from Land Preservation
- Historic Rehabilitation
- Income for First-Time Home Buyer Savings Account - If included in federal adjusted gross income, a subtraction for income attributable to a first-time home buyer savings account that was taxed as interest, capital gains or other income.
- Discharge of Student Loans
- Venture Capital Investment - The fund in which the investment is made must be certified by the Department as a Virginia venture capital account for the year of investment.
- Real Estate Investment Trust - Beginning on January 1, 2019, taxpayers may claim a subtraction for income attributable to an investment in a Virginia real estate investment trust made on or after January 1, 2019 but before December 31, 2024.
- In order for the subtraction to be claimed on the investors’ income tax returns, the real estate investment trust in which they invest must be certified by the Department as a Virginia real estate investment trust for the taxable year during which the investment was made. If the fund is approved, a 9-digit certification number will be provided. Enter this number in the “Certification Number” space provided by the subtraction code. (760 Instructions)
- Gain from Eminent Domain -Beginning on January 1, 2019, taxpayers may claim a subtraction for any gain recognized from the taking of real property by condemnation proceedings.
- Federal Partnership Income Subtraction - Income from a federal partnership audit may be subtracted from VA income if income was previously reported on the owner's VA return.
- Military Benefits Subtraction - Beginning in tax year 2022, certain military benefits received by individuals aged 55 or older may be subtracted from their Virginia income. The maximum amount of this deduction is $10,000.
- Other Subtractions - If you have any other subtraction included in federal adjusted gross income which is not taxable in Virginia., you may claim the subtraction as "Other Subtractions" If you are filing by paper, enclose an explanation and supporting documentation, if applicable. If you are filing electronically, provide an explanation in the space provided by the software program.
Where to enter?
To enter these subtractions into the program:
- State Section
- Subtractions From Income
- Other Subtractions
- Select Subtraction item from the drop down menu