Question

Virginia State Income Tax

Forum|Forum|5 years ago
April 22, 2021
1 reply
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On my 2018 Virginia State Tax filing a deduction on line 7 was for $38068 this was entered by the turbo tax software with no explanation. This was not on my Federal return as a deduction. The only amount on my federal return was from my K-1 Ordinary income distribution was $38068. The state has disallowed this deduction and assessed additional tax and penalty. I think this was a glitch in your software. Please advise what could have happen

Jim V

Hal_Al

Employee

You mis-identified the $38,068 income as either interest on US bonds or as disability income. See VA Schedule 763 ADJ. This is unlikely to be a TT glitch as you have to tell it that the income is so classified.