Virginia has elected not to conform to the federal exclusion of unemployment income for tax year 2020.
The state of Virginia does not currently tax unemployment income.
What if I filed already and excluded the unemployment income from the VA return only?
If you already filed with unemployment included on the federal return, you do not need to take any additional action with respect to the Virginia return.
What if I didn't file yet and the unemployment is being excluded from the federal return?
If you have not yet filed, you will need to add back the amount of unemployment compensation excluded from the federal taxable income.
How do I add the unemployment back to my state return?
The program has been updated to automatically include the income back into the return,. However, if you filed before Virginia offered any guidance, you will need to add the unemployment income back to the return.
To add the unemployment back to the Virginia return:
- State Section
- Additions to Income
- Other Additions
What if I filed my state return with the unemployment income excluded on the federal return?
If you filed your return and the unemployment income was excluded on the state return, the state will require you to file an amended return. You can review this state requirement in this Tax Bulletin.