The Additions to Income section is used to report income or deductions that must be added back to your Federal Adjusted Gross Income (AGI) when calculating your District of Columbia taxable income. Most taxpayers will not need to complete every field in this section.
What Can Be Entered in the Additions to Income Section?
Franchise Tax Deduction
Enter any state or local franchise tax deduction that was claimed on the federal return and is required to be added back for District of Columbia tax purposes. Franchise taxes are generally taxes imposed on businesses for the privilege of operating within a jurisdiction.
Income Distributions Eligible for Averaging
Enter qualifying lump-sum income distributions that may be eligible for special income averaging treatment. Income averaging allows certain distributions to be taxed using a method that spreads the income over multiple years rather than taxing the entire amount in one year.
Discrimination Award Subject to Income Averaging
Enter qualifying discrimination awards that are eligible for income averaging treatment. These awards are generally received as a result of legal settlements or judgments and may qualify for special tax treatment under certain circumstances.
Deductions for S Corporation
Enter deductions related to S Corporation income that must be added back when determining District of Columbia taxable income. These adjustments typically involve items that were deducted federally but are not allowed for DC tax purposes.
What Are "Other Additions"?
The Other Additions fields allow taxpayers to report additions to Federal AGI that do not fall into one of the categories listed above.
Other Additions – Taxpayer
Enter any additional income or adjustment that must be added to the taxpayer's Federal AGI.
Other Additions – Spouse
Enter any additional income or adjustment that must be added to the spouse's Federal AGI.
Description of Other Addition
Provide a brief explanation of the item being entered. Examples may include special income adjustments, federal deductions that must be added back, or other adjustments required under District of Columbia tax law.
Additional Additions
If you have additional items that must be added to your Federal AGI for District of Columbia tax purposes, select Begin next to Additional Additions and enter the required information.
Examples may include:
- Income that is exempt from federal taxation but taxable in the District of Columbia.
- Federal deductions that must be added back on the District of Columbia return.
- Other adjustments specifically required by District of Columbia tax law.
Additional Notes
- Only enter amounts that are specifically required to be added back to your Federal AGI.
- Do not enter income that is already included in your federal taxable income unless instructed to do so.
- If you are uncertain whether an amount belongs in this section, review your supporting tax documents and the District of Columbia filing instructions before making an entry.
- Most taxpayers will leave many of these fields blank unless they have a specific tax situation that requires an adjustment.