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Category: Virginia

Virginia Additions to Income

Interest Income from Obligations of Other States

Enter the amount of any interest on obligations of other states not included in your Federal Adjusted Gross Income, which is taxable in Virginia, less related expenses.

 

Fixed Date Conformity Addition

Bonus Depreciation: If you claimed a federal depreciation deduction and one or more of the depreciable assets received the special 30% or 50% bonus depreciation deduction under IRC § 168(k) in any taxable year from 2001 through 2016, or the bonus depreciation under IRC §§ 168(l), 168(m), 1400L, or 1400N, then depreciation must be recomputed for Virginia purposes as if such assets did not receive such bonus depreciation. If your total 2016 Virginia depreciation calculation is less than your 2016 federal depreciation calculation, then the difference must be recognized as an addition. Enter the amount that should be added to Federal Adjusted Gross Income based upon the recomputation of allowable depreciation.

 

Other Fixed Date Conformity Additions: If you are required to make any Other Fixed Date Conformity additions, enter the total amount of such additions on this line.

 

 

The following entries show as Other Additions to Income on your return. Please note the Code number of the item, as this will appear on your VA 760-CG under Additions: Part 1

 

Interest on Federally Exempt U.S. Obligations- Code 10

Enter the amount of interest or dividends exempt from federal income tax, but taxable in Virginia, less related expenses.
 

Accumulation Distribution Income- Code 11

Enter the taxable income used to compute the partial tax on an accumulated distribution as reported on federal Form 4970.

Lump-Sum Distribution Income - Code 12

If you received a lump-sum distribution from a qualified retirement plan and used the 20% capital gain election, the ten-year averaging option, or both on federal Form 4972, complete the table below:

Enter the total amount of distribution
subject to federal tax. 
(ordinary
income and capital gain) ............................. 1. _______________

 

Enter the total federal minimum
distribution allowance, federal
death benefit exclusion and
federal estate tax exclusion. ........................ 2. _______________

Subtract Line 2 from Line 1.
Enter this amount on Line 2b or
2c 
of your Virginia Schedule ADJ. ................. 3. _______________ 


Income from Dealer Disposition of Property
- Code 14

Enter the amount that would be reported under the installment method from certain dispositions of property. If, in a prior year, the taxpayer was allowed a subtraction for certain income from dealer dispositions of property made on or after January 1, 2009, in the years following the year of disposition, the taxpayer is required to add back the amount that would have been reported under the installment method. Each disposition must be tracked separately for purposes of this adjustment.


Telework Expenses
- Code 16

Individuals who claim the Virginia Telework Expenses Tax Credit are not allowed to exclude those expenses from Virginia Income. To the extent excluded from federal adjusted gross income, any expenses incurred by a taxpayer in connection with the Telework Expenses Tax Credit must be added to the Virginia return.

 

First-Time Home Buyer Savings Accounts - Code 17

To the extent excluded from federal adjusted gross income, an account holder must add any loss attributable to his or her first-time home buyer savings account that was deducted as a capital loss for federal income tax purposes. For more information, see the FirstTime Home Buyer Savings Account Guidelines, available in the Laws, Rules & Decisions section of the Department’s website at www.tax.virginia. gov.

 

Food Crop Donation - Code 18 

To the extent a credit is allowed for growing food crops in the Commonwealth and donating such crops to a nonprofit food bank, an addition to the taxpayer’s federal adjusted gross income is required for any amount claimed by the taxpayer as a federal income tax deduction for such donation.

 

Other Additions - Code 99

 

Enter the amount of any other income not included in federal adjusted gross income, which is taxable in Virginia.