If I am taking the standard deduction on my federal return, can I take the long term care deduction on my Virginia tax return separately?

[MichaelMc · Accepted solution]

Yes. You must claim the same type of deductions (standard or itemized) on your Virginia return as you claimed on your federal return. Your state and local income taxes must be subtracted from your itemized deductions. 

However, Long-Term Health Care Premiums are a deduction from Virginia Adjusted Gross Income (code 106) and may be claimed on Schedule ADJ, subject to the following: 

"The Virginia deduction for long-term health care insurance premiums is completely disallowed if you claimed a federal income tax deduction of any amount for long-term health care insurance premiums paid during the taxable year."

[dweber2037]

FYI:the Virginia LTC credit was repealed in 2013.

[tavennerfb]

Does the same apply for 529 contributions (standard Fed, Virginia deduction for 529 contributions)?

[JotikaT2]

I am assuming you are asking if you can make contributions to a Virginia 529 plan on your state income tax return even though you cannot on your federal tax return.

The answer is yes, but the amount is paid from any overpayments on your state income tax return.

The amount of your Virginia 529 Contribution would be reported on Schedule VAC (Virginia Contributions Schedule) and used to make contributions to education plans from any tax refunds reported on your Form 760, Virginia Income Tax return.

[tavennerfb]

Actually, I was wondering why TurboTax didn't ask me if I was contributing to a 529, and take me to a data entry screen!!!  I finally went to the forms section, where I found the VA ADJ Worksheet (is that now what's called the Schedule VAC?) and entered the data manually.  When I go to print, I'm not sure WHAT form will print out, but in any event, it seems like the TurboTax VA state program needs to be updated.

[tavennerfb]

Further, your reply indicates that contributions to a 529 are tax-favored ONLY if they are made from overpayments or prior year refunds.  What about contributions that are regularly made throughout the year?  My reading from the 529 website is that those contributions are tax-favored also.

[JotikaT2]

Thank you for the clarification on your original question.

Yes, it is also an allowable deduction on your VA tax return but the amount varies based upon your specific circumstances.  See the following excerpt from VA for more details.

[Jon B1]

Question: For Long Term Care. Do you use the full premium amount or the Federal tax-deductible limits?  In Virginia VA760 tax form ADJ.

[AnnetteB6]

As long as you did not deduct any long term care insurance premiums as part of your Federal return, you would enter the full premium amount on the Virginia return.  

@Jon B1