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In response to tax reform, Virginia has modified the conditions when state and local income tax is added back. Virginia taxpayers are considered to have fully deducted their real estate and property taxes on the federal return first before deducting any income taxes. This is most advantageous to the taxpayer and reduces tax owed. Since the federal deduction is limited to $10,000 for these taxes, if your real estate and personal property taxes equal or exceed this amount, then your state and local tax on line 11 will be zero.
In response to tax reform, Virginia has modified the conditions when state and local income tax is added back. Virginia taxpayers are considered to have fully deducted their real estate and property taxes on the federal return first before deducting any income taxes. This is most advantageous to the taxpayer and reduces tax owed. Since the federal deduction is limited to $10,000 for these taxes, if your real estate and personal property taxes equal or exceed this amount, then your state and local tax on line 11 will be zero.
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