I believe you may be referring to a deduction for long-term health care premiums, rather than medical premiums.
In Virginia you can claim, as a deduction from income, premiums paid for long-term health care insurance, as long as you didn't claim a deduction for these premiums on your federal return.
According to Long-Term Health Care Premiums in the Resident Individual Income Tax Return Instructions:
The Virginia deduction for long-term health care insurance premiums is completely disallowed if you claimed a federal income tax deduction of any amount for long-term health care insurance premiums paid during the taxable year.
If this isn't what you're referring to, please post back. Some helpful information you might be able to provide would be:
- Verification that you mean medical premiums, rather than long-term health care premium
- Whether you itemized deductions on your federal return
- Whether either of you claimed long-term health care premium deductions as itemized deductions on your federal return
- The title of the screen, in the Virginia portion of TurboTax, you're seeing the allocation information request on
