Military Benefits Subtraction (Virginia)

[jewlkk]

How old do I have to be to claim the Military Benefits Subtraction? 

You must be 55 or older. Beginning with taxable year 2024 (returns usually filed in 2025,) you can subtract these benefits regardless of your age. 

That statement was located: tax.virginia.gov/military-benefits-faq 

Turbo Tax is not allowing it and it still says I don't qualify due to being 50. I believe the software needs to be updated. I will not file my taxes until I get an answer....or maybe I'll be forced to use another program.

Anyone hear anything on this?

[jewlkk · Accepted solution]

UPDATE: 

I called TurboTax and spoke to a lady. In short, Virginia has until the end of January to provide the necessary information on updates to TurboTax and then the software will be updated to reflect the new change. 

It sort of sucks that if I wasn't personally aware of this change I would have filed my taxes and missed out on 40K being deducted. 

I highly recommend waiting until at least mid-Feb to do your taxes through TurboTax if your state is Virginia! I will personally call again if by then the software isn't updated. 

[bluezapfel]

I was just coming to post this exact issue! thank you for already doing so. the software should tell you an update is coming or possible

[jewlkk]

TurboTax has been updated. I was able to get the full 30K for myself this year. 

I went from owing about $500 to now getting a $1200 refund.

[bluezapfel]

Not working for me, still says 55 or older.... i have checked for updates and TT reports I'm up to date... so how's that possible?

[Robvan]

Hi. I was able to call them and fixed it. Shouod work now. Cheers

[Tiffandkens]

Mine is working as well. The only question I have is if your pension retirement wasn’t 30k do I enter the amount we were paid that’s on the 1099 in box 1 in this section or do I enter 30k regardless. Or was this just saying 30k is the max you can enter? For example if you were paid 50k total you can only enter 30k as the max? 

[Robvan]

Just when the time comes to select the military,  it will do the work frlor you. No need to do anything with your W2s. When you get to state, it it will guide you.

[Tiffandkens]

Mine did not enter anything automatically under military benefits subtraction (Under State - Virginia). I have to enter the amount myself. 

[DaveF1006]

It depends on the amount of your military pay. The State of Virginia states "Resident service members serving on active duty for 90 or more days who earn less than $30,000 (base pay) can deduct up to $15,000 from their Virginia Income tax. For every $1 of income over $15,000, the maximum subtraction is reduced by $1".

If over $30,000, you are not eligible for the active duty military subtraction. The key caveat is that you do need to earn less than $30,000. If you entered this manually, you may receive a nice letter from the State of Virginia.

Military Benefits for the State of Virginia  See section entitled What are my Virginia Military and Veterans State Tax Benefits?
 

[Tiffandkens]

We fall under the Military retirement pension to be able to claim. So that is where I’m confused do we enter the flat $30k it says is the max or do we enter the gross amount of his retirement pay that shows on the 1099 which is less than $30k?

[DaveF1006]

No.  You may enter the entire amount and Turbo Tax will adjust the amount you are entitled to. It should be the amount that is shown on your 1099R, if less than $30K.

As an FYI, you may deduct up to $30K on the amount of your 1099R but if it is less, you may only deduct the amount paid to you and not a flat $30K.   

You were correct the first time. Retirement income does need to be entered by you as a military adjustment in your Virginia state return. 

@Tiffandkens 

[Tiffandkens]

Great! Thank you so much! I did it correctly then and entered the amount on our 1099 which was less than $30k! Thanks again.