Does Turbo Tax account for the Virginia Military Retirement Income change for 2022? It is reduced on first $10,000 for retirees over 55.

[Chas11]

I was unaware of this deduction until I was completing my 2023 taxes.  On what 2022 Turbo Tax screen does one see "State Taxes in the left column"??  I am not finding it so can't even start creating an amended return.

 Not impressed that updates to the 2022 Turbo Tax program did not update the Virgina tax procedure to account for this significant change.

[DMarkM1]

If using TurboTax online sign in to your account and scroll down to your tax documents.  There you will see an amend option. Choose the amend option for the prior year return.  Once you are in your 2022 return, on the left hand side you will see items like "Federal" "Wages & Income" Deductions & Credits" and "State Taxes." In the State Taxes dropdown you will find the topic "Your State Returns."  Click that option to take you to your state returns. 

NOTE:  Since you are amending your state return and not your federal return here is a link that will help you complete the process. The link also has instructions if you need to use a desktop product. 

[gtmohawkjr]

Does Virginia tax military retirement pay and if so by how much?

gtmohawkjr

My military retired home of record is Texas but I got a new job in Virginia.  How is my military retirement taxed?

gtmohawkjr

[gtmohawkjr]

WOW!!

THANKS FOR THE VIRGINIA UPDATE FOR US VETS AT OR OVER 55 REGARDING MILITARY RETIREMENT PAY.

[Dan Soto]

Chas11,

Turbotax did not update nor give you any prompt to to claim this significant new change to Virginia Tax Law for military retirees.

My own opinion is that a majority of the people who qualify to take this deduction will never take it.

They won't go looking for this deduction because they don't know it exists and Turbotax will never prompt

them.

I personally to this deduction on my 2022 and 2023 state returns because I knew about it.

Although wasn't aware of the increase in the deduction limit from $10,000 to $20,000.

Turbotax calculation was a refund of $70 with claiming to deduction.

After I corrected my return with the deduction.   $720 refund.

$650 difference which Turbotax mistake would have cost.

Turbotax guarantee = fail

For most people, $650 is a lot of money.

How do I get a refund?

[dnrcald3]

File an amendment by following the instructions in Turbo Tax. I haven't done it for a long time so I can't recall how to do it. 

[Dan Soto]

Thank you dnrcald3.

Sorry but mistake in original post.

I should have said:  In the final review of my state return I realized the deduction had not been applied.

And added the deduction manually before e-filing by returns. 

[Sadasat]

how to I get this if I have already filed... can not believe this was not built in!  

We claim standard deductions.

Please advise

[dnrcald3]

File an amendment using Turbo Tax instructions. I don't  remember how to do the amendment but it is built into Turbo Tax.

[DoninGA]

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@Sadasat wrote:

how to I get this if I have already filed... can not believe this was not built in!  

We claim standard deductions.

Please advise

---

See this TurboTax support FAQ for amending a state tax return - https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-return/need-amend-state-return/L3hGF...

[pbafire]

And for 2024 tax year (taxes filed in 2025)Turbo Tax still has it wrong for Virginia. They still have the age limit but it has been lifted.

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

b. For taxable years beginning on and after January 1, 2022, but before January 1, 2023, up to $10,000 of military benefits; and for taxable years beginning on and after January 1, 2023, but before January 1, 2024, up to $20,000 of military benefits.

c. For taxable years beginning on and after January 1, 2024, but before January 1, 2025, up to $30,000 of military benefits; and for taxable years beginning on and after January 1, 2025, up to $40,000 of military benefits.

The subtraction allowed by subdivision b shall be allowed only for military benefits received by an individual age 55 or older.
The subtraction allowed by subdivision c shall be allowed for military benefits received by an individual of any age.

[DMarkM1]

Thank you for reporting your experience. We are currently investigating the issue and will provide updates as soon as possible.

[RichN]

So, 7 months have gone by and most of will be starting their 2024 tax computations.  Does ANYONE know if this  change has finally been integrated into the TurboTax software?  It would REALLY be nice to have it this year as many of us missed or almost missed this SIGNIFICANT Virginia tax change.  (If not, come on Turbo Tax!  One of the main reasons that I PAY for your product is that I expect it to be accurate.  This matter was surfaced last year and your response was that you were looking into it.  Seems like enough time has passed already to make this change.  Hope to hear SOON that you have already made this IMPORTANT change to your software.)

[pbafire]

reportedly 'fixed' (i just received a reply off a dif thread).

And sure enough, it works now.

[RichN]

         Turbotax does NOT DO THIS AUTOMATICALLY.   I completed my federal taxes and then it showed Virginia as my home state and on the bottom it said finished with states.  If you click this thinking that Turbotax has already completed your Virginia tax forms without your intervention you will MISS THE ENTIRE VIRGINIA MILITARY RETIREMENT DEDUCTION!  I thought it was asking if there were any OTHER states that I needed.  
          You have to ENTER the Virginia tax section at that point and complete the section on military retired pay exemptions.  If you do what I almost did you will lose a SIGNIFICANT Virginia tax deduction.  In my case it was over $1700!

           Please be very careful with this section!  Turbotax has rightly claimed they have included the new military retirement exemption BUT it does NOT do it automatically!  
            When I finished my federal taxes, the next page for the state tax gives the wrong impression that they have already included the Virginia military retirement income deduction but it does NOT!

            When I read that they had “fixed” the problem I was pleased.  Unfortunately, it STILL needs work because the first page you come to after your federal taxes is completed, left me with the impression it was done.  I went through the turbotax final check and it did not show up as an error or that they needed more information. Fortunately, I was sensitive to the possibility of an error and went back and waded through each of the questions for my Virginia tax.  You have to consciously remember to go through your state section or you will miss the deductions!