We are thinking of moving to VA to be closer to children. Our only income is from Social Security and a retirement pension from the State of Florida government. Are those excluded from VA state tax or do we have to pay?
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Depends on your ages, pension totals, and any other income you might have (interest, investment distributions or gains, etc)
1) SS is not taxed by VA
2) Most else of what you have usually is "potentially " taxable, including the pensions.
But...VA has an additional AGE deduction that is pretty high (IF both of you are over age 65, "up-to" 12,000/spouse over age 65, but that is reduced if non-SS income exceeds 75,000 ), so depending on what the total of your other income is, there may not be much left for VA to tax. That really depends on your income situation for everything beyond SS. ( Then, beyond that, VA requires that STd Ded be used if STD Ded is used on federal....or Itemized if Itemized Ded is used on Federal...so that can be a complication too)
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You could manually model your situation sing the VA paper forms and instructions for 2020 to see how 2020 would have been if you had been a full year VA resident for 2020
(You want to model full year...PY will be lower, but that's only the year you move and you will want to see what the total might be for future years):
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You'll want to use the form 760, 760 instructions and possibly the Schedule ADJ (but ignore itemized deductions for the moment to make it simpler). Not sure what other forms may apply to you , but the Instructions will point you to any other forms needed. Just take a printout of your 2020 Federal tax return as your starting point for their form 760, and fill it in as noted in their instructions to see if any significant income remains to be taxed after all the deductions. (you click on the forms on the left side of the screen/table of forms)
https://www.tax.virginia.gov/forms/search?category=1&year=266
Thanks. I'll look into it.
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