Virginia State Other Subtractions
When filing your Virginia individual income tax return, you may be eligible to subtract certain types of income that are included in your federal adjusted gross income (AGI) but are not taxable in Virginia. These are known as "Other Subtractions" and are reported on Form 760 or Form 763, depending on your filing status.
What Are Other Subtractions?
Other Subtractions refer to income items that are part of your federal AGI but are not subject to Virginia state income tax. These may include:
- Income from sources outside Virginia that is not taxable in Virginia.
- Adjustments related to federal tax changes, such as partnership income adjustments that were previously reported on a Virginia return but should not have been.
- Other specific exclusions or deductions allowed under Virginia tax law.
How to Report Other Subtractions
For Form 760 (Individual Income Tax Return):
- Enter the amount of any other subtraction on Line 99.
- If filing by paper, enclose an explanation and supporting documentation.
- If filing electronically, provide a detailed explanation in the space provided by the software.
- Include the total of Lines 4 through 6d on Line 7 (Total Subtractions).
For Form 763 (Nonresident or Part-Year Resident Return):
- Enter the amount of any other subtraction on Line 99.
- Sum Lines 4, 5a, 5b, and 6a–6d and enter the total on Line 7 (Total Subtractions).
Important Notes
- Ensure you have proper documentation to support any "Other Subtraction" claimed.
- Only subtract income that is not taxable in Virginia and was included in your federal AGI.
- Married taxpayers must follow special rules for allocating income and tax liability.
Source:
Form 760 Instructions
Form 763 Instructions
Disclaimer: Always verify information with official Federal or State Department of Revenue Forms and Instructions.