Retirement tax questions

No -- there's nothing to override.  You can be eligible for both.

 

You're eligible for an age deduction of up to $12,000 if you were born on or before January 1, 1959.  See Taxpayers Age 65 and Older in the Form 760 Instructions.  This deduction is taken on line 4 of Form 760

 

For 2023, you're eligible for a military benefits subtraction of up to $20,000.  This is claimed on Schedule ADJ, and the subtraction will appear on line 7 of Form 760.

 

According to 60, Military Benefits Subtraction in the instructions linked above:

This subtraction is not allowed if a credit, exemption, subtraction, or deduction is claimed for the same income pursuant to any other provision of Virginia or federal law. 

This means you can't "double-dip" tax benefits based on your military-related income -- that is, you can't claim more than one type of tax benefit on this specific income

 

Since the $12,000 age deduction applies to all income, there's no double-dipping going on.

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