Question

Virginia Form 760 Age deduction

Forum|Forum|4 years ago
February 17, 2022
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The Virginia Form 760 does not seem to be entering the deduction for age over 65. The Exemptions on the 2nd page of the form lists "65 and over -- You" and "65 and over -- Spouse" as 1 deduction each. But lines 4a and 4b do not have any entries. Per tax.virginia.gov each person should get a deduction of $12,000.

J

JohnW152

It’s not quite that cut and dry – the deduction can vary by birthdate, and there’s a limitation based on your adjusted federal adjusted gross income.

According to Taxpayers Age 65 and Older in the Form 760 Resident Individual Income Tax Booklet, If your birth date is on or before January 1, 1939, You may claim an age deduction of $12,000. If you are married, each spouse born on or before January 1, 1939, may claim a $12,000 age deduction.

However, if you were born on or between January 2, 1939, and January 1, 1957, things get more complicated: Your age deduction is based on your income. A taxpayer’s income, for purposes of determining an income-based age deduction, is the taxpayer’s adjusted federal adjusted gross income or “AFAGI.” A taxpayer’s AFAGI is the taxpayer’s federal adjusted gross income, modified for any fixed date conformity adjustments and reduced by any taxable Social Security and Tier 1 Railroad Benefits.

To further complicate things:

For Filing Status 1, single taxpayers, the maximum allowable age deduction of $12,000 is reduced $1 for every $1 the taxpayer’s AFAGI exceeds $50,000.

For all married taxpayers, whether filing jointly or separately, the maximum allowable age deduction of $12,000 each is reduced $1 for every $1 the married taxpayers’ joint AFAGI exceeds $75,000.

Please see Age 65 and Older Deduction Worksheet in the link above to see how your deduction might have been computed.