I have the same question. My father passed away in 2023,and I received an SSA-1099 which I reported on lines 6a and 6b of the 1040 and was taxed on it. Then for my Virginia state taxes, there is a question about "Virginia Tax Reduction for Certain Kinds of Death Benefits" as a deduction but it only says "In order to qualify for this Virginia tax reduction, you should have received IRS Form 1099-R from an insurance company. (...) Virginia allows a tax reduction (subtraction) for death benefits you received from an annuity. An annuity is a kind of contract with an insurance company." Neither of these applies to me as the death benefit is from Social Security so it is not a deduction in the sense they are using here?
