Amending 2025 Virginia Return

[davidsellers]

I need to amend my 2025 Virginia state return to include out of state municipal bond interest as an addition. The TurboTax AI Help incorrectly said it was Virginia policy not to tax this interest so not added to Additions. Can I amend to add the exempt interest and submit the Virginia form through Turbo Tax online and when will it be available?

[MelindaS1]

Generally, you should wait until your returns have been accepted by both federal and state, and any refunds have been disbursed to your account before beginning the amendment process. If the VA DOT were to reject your state e-file transmission, then you could just revise the information entered and resubmit the original for e-filing as normal. 

The state of Virginia does not have a separate form for amended individual tax returns; instead, a revised copy of the original will be filed with the Amended return box checked at the top. During your state review, make sure the amended reason code shows '04 Virginia Return – Changes to subtractions, deductions, additions, and credits' (so they do not ask you for a copy of Federal 1040-X). 

Learn more: VA DOT - How to Complete an Amended Return

To populate the VA amended 760 in TurboTax Online (after your return has been fully processed by the state):

TurboTax Online

1. Go to the Amend screen.
2. Select Amend (change) return, then Amend using TurboTax Online.
   1. If you're told to amend your return via TurboTax Desktop, follow the steps for TurboTax Desktop below instead.
3. On the screen OK, let's get a kickstart on your 2025 amended return, select The IRS or state sent me a notice (this will allow you to amend only your state return without making changes to your federal) and Continue.
4. On the next screen, select Something else and Continue.
5. On the screen Tell us which 2025 return(s) you want to amend, select 2025 state.
6. Continue until the Let's work on your state taxes screen. Select Amend next to your state return, and continue through the screens to make your amendments.

See more: TurboTax FAQ - How do I amend my state tax return?

Note: investment interest expense. "Since Virginia law exempts only income from Virginia state and local obligations, an addition is required to bring interest income from obligations of other states into Virginia taxable income. The amount to be added back on the Virginia return is the income less related expenses." from VA DOT - Interest on Obligations of Other States

[davidsellers]

Thanks, that was helpful. So the message is I should wait for the refunds before processing. That makes sense. Then once Virginia processes the amendment they will ask me to pay back the difference in refunds.