Virginia Military Benefits Subtraction versus the Age Deduction

[fisicaligal]

It's my understanding that you cannot take both the Military Benefits subtraction ($20,000) AND also take the Age Deduction ($12,000). Obviously I'll take the Military Bene subtraction, but how do I make the Age Deduction $0? Do I have to override it?

[JohnW152 · Accepted solution]

No -- there's nothing to override.  You can be eligible for both.

You're eligible for an age deduction of up to $12,000 if you were born on or before January 1, 1959.  See Taxpayers Age 65 and Older in the Form 760 Instructions.  This deduction is taken on line 4 of Form 760. 

For 2023, you're eligible for a military benefits subtraction of up to $20,000.  This is claimed on Schedule ADJ, and the subtraction will appear on line 7 of Form 760.

According to 60, Military Benefits Subtraction in the instructions linked above:

This subtraction is not allowed if a credit, exemption, subtraction, or deduction is claimed for the same income pursuant to any other provision of Virginia or federal law. 

This means you can't "double-dip" tax benefits based on your military-related income -- that is, you can't claim more than one type of tax benefit on this specific income. 

Since the $12,000 age deduction applies to all income, there's no double-dipping going on.

[fisicaligal]

Thank you! I did find subsequent to my posting the question that according to the VA Dept of Taxation FAQ:

“May I take both the Military Benefits Subtraction and the Age Deduction on the same return?

Yes. To the extent you qualify for both, you may take both the Military Benefits Subtraction and the Age Deduction. “