How can I take advantage of the tax bill in Virginia that passed last year and allows veterans 55 and over to deduct up to $20,000 from my state taxes this year?

TurboTax is set up to handle the new Virginia military benefits subtraction.

 

For taxable years beginning on and after January 1, 2022, certain military benefits received by an individual age 55 or older may be subtracted from Virginia taxable income.

 

The maximum amount of the subtraction is $10,000 in Taxable Year 2022.

 

To claim your Military Benefits Subtraction:

 

1. Tap State Taxes in the left column
2. Tap Your State Returns
3. On “Status of your state returns,” tap Continue next to Virginia
4. Keep going until you see “Here’s the income that Virginia handles differently”
5. In Military, select Military Benefits Subtraction
6. On Enter Your Military Benefits, enter the Total Qualifying Military Benefits Received up to $10,000

 

Thank you for your service.