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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.

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. _______________ 

Other Additions - Code 99

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

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.

Domestic Production Deduction - Code 15

Enter 1/3 of the total amount of the domestic production deduction claimed on your federal return pursuant to IRC Section 199. For taxable years 2010 and thereafter, Virginia does not conform to he domestic production deduction allowed under IRS Section 199. Instead of allowing this deduction to flow through, Virginia allows a deduction equal to two-thirds of the federal deduction.