DMarkM1
Employee Tax Expert

Tax help for military filers

As TomD8 states, assuming there is no other VA source income and you qualified for and excluded the home sale gain from federal taxable income, then you would not need to file in VA.  


 

VA starts with the Federal Adjusted Gross Income which, if you qualified, would have excluded the home sale gain up to $250,000.  Further, VA conforms to IRS tax code with only a few exceptions. The home sale exclusion is not an exception and therefore is not an addition to VA income on the form 763 Adj form.  


 

VA Form 763 Instructions (see pages 19-21)


 

Additionally, here is an IRS Publication on the home sale exclusion for additional information.


 

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