I discovered the same problem using TurboTax Deluxe installed from CD. The Step by Step process does not prompt for spouses income required for the Virginia Age Deduction Worksheet when filing as Married Filing Separately, therefore the Age Deduction Worksheet calculates using the individual's income instead of both spouses. However, if one goes to Forms view and inputs the spouses income in the Taxpayer/Spouse Allocation Worksheet, it will transfer the sum of income and social security/tier 1 for both spouses to the Age Deduction Worksheet for the proper calculation. When both spouses are over 65 and filing separately, TurboTax Deluxe may be creating incorrect Virginia returns for those users who use the step by step process and do not review the forms closely.
