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Category: District of Columbia

District of Columbia Subtractions from Income

Income Reported and Taxed this Year on a DC Franchise or Fiduciary Return (D-20, D-30 or D-41)
If the income reported on your 1040 included income reported and taxed on a DC franchise or DC fiduciary return, enter that amount.

DC and Federal Government Pension and Annuity Limited Exclusion
You must be 62 years of age or older as of December 31, 2013 to claim this exclusion. Enter the lesser of $3,000 or the taxable income you received from military retired pay, pension income or annuity income from the DC or federal government during the year. The maximum annual exclusion is $3,000 per person. The remaining amount of the pension/annuity is taxable and must be reported on your return.

DC and Federal Government Survivor Benefits
If you are an annuitant’s survivor and 62 years of age or older as of December 31, 2013, enter the total survivor benefits (do not include Social Security survivor benefits).

Interest and Dividends from Form 8814
Parents' Election to Report Child's Interest and Dividends. Since income reported on Federal Form 8814, and included in the parent's federal return income is subtracted, the child must file a separate DC return reporting this income.

Employment Discrimination Awards
Enter any awards, other than front pay and back pay, received because of unlawful employment discrimination.

Long Term Care Insurance Premium Deduction
Enter Long-term care insurance premiums paid in 2013. The deduction may not exceed $500 per year, per person, whether filing individually or jointly.

DC College Savings Plan Payments
Enter the amount contributed to a qualified DC “529” College Savings Plan. You may deduct up to $4,000 annually for contributions you made to all qualified college savings accounts of which you are the owner. If you are married and file a joint or combined separate return, each spouse/domestic partner may deduct up to $4,000 for contributions made to all accounts for which that spouse/domestic partner is the sole owner. A rollover distribution is not a contribution for purposes of this deduction. Contributions made to one or more accounts in excess of the allowable $4,000 ($8,000 for eligible joint filers) annual deduction may be carried forward as a deduction (subject to the annual limitation) for up to five years. If you were a part-year DC resident during the tax year, you may deduct only the amount contributed when you resided in DC.

Exclusion for DC Disabled Residents
Income not to exceed $10,000 is excludable in computing DC gross income for persons determined by the Social Security Administration to be totally and permanently disabled and who are receiving: Supplemental Security Income or Social Security Disability; or railroad retirement disability benefits; or federal or DC government disability benefits; and whose annual household adjusted gross income is less than $100,000. Note: Household income includes income received by all household members in the year, even income excluded from federal adjusted gross income. Note: Adjusted gross income is that of all persons residing in a household, excluding the adjusted gross income of any person who is a tenant under a written lease for fair market value.

DC Teacher Expenditures & DC Teacher Tuition and Fees
An individual who meets the following qualifications:

  1. Has been approved by the DC public schools; and
  2. Has been a classroom teacher in a DC public school or public charter school for this entire tax year or the entire prior tax year may deduct: A) The amount the teacher paid during the year for basic and necessary classroom teaching materials and supplies – up to $500 per person whether filing individually or jointly. B) The tuition and fees paid during the year for postgraduate education, professional development, or state licensing examination and testing for improving teaching credentials or maintaining professional certification – up to $1,500 per person whether filing individually or jointly.

NOTE: Teachers: Please note the interaction between DC deductions and similar federal deductions: To prevent a “double deduction” situation – if a DC classroom teacher claims a deduction on his/her federal return for personal expenses incurred in purchasing classroom supplies and/or for tuition and fees expenses, the federal tax deduction claimed reduces the amount that may be claimed for those same expenses on the DC return. For example, a DC classroom teacher who claims $1,500 or more for tuition and fees on the federal return (Form 1040, Line 34) may not take any deduction for these same expenses on the DC return.

Loan Repayment Awards for Health Care Professionals
“Loan repayment awards” of up to $120,000 paid over 4 years by DC to health care professionals to reduce their medical education debt are not taxed by DC. (This program is administered by the DC Department of Health.)

Health-care Premiums Paid for Non-employee Domestic Partner (must be a registered domestic partner)
Any health-care insurance premium paid by an employer for an employee’s domestic partner registered with the Vital Records Division of the DC Department of Health (see DC Code §32-701 (3) and 702) or same sex spouse is deductible, unless on your federal return the employee’s registered domestic partner or same sex spouse was considered a dependent under IRC §152 and a deduction from income was taken for the premium on the employee’s federal tax return.

DC Poverty Lawyer Loan Assistance
Enter the amount from your 1099-C issued by the DC Office of the Attorney General (OAG). Lawyers eligible for this award are those whose legal practice has been certified by the DC OAG as serving the public interest.

Other Subtractions
Enter any other subtractions that are taxable on your Federal return but not taxable to DC.

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