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Which 2018-expired Federal deductions (e.g. Cap on State & Local taxes) still may reduce virginia state tax owed (e.g. Personal Property Tax on cars)?

 
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PhyllisG
New Member

Which 2018-expired Federal deductions (e.g. Cap on State & Local taxes) still may reduce virginia state tax owed (e.g. Personal Property Tax on cars)?

Virginia has mainly conformed to the federal itemized deductions changes and eliminations including employee business expenses.

You can take the state and local tax deductions (property, sales) but not the state income tax deductions.  Personal property taxes based on the value of your vehicle are deductible. but vehicle registration fees are not deductible because they are determined by the weight of the vehicle. There is a cap of $10,000 for these deductions that mirrors the federal.  

Another item to note is if you itemize on your federal return, you will have to itemize for the state.  And, if you use the standard federal deduction instead, then you must utilize Virginia's state deduction.

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1 Reply
PhyllisG
New Member

Which 2018-expired Federal deductions (e.g. Cap on State & Local taxes) still may reduce virginia state tax owed (e.g. Personal Property Tax on cars)?

Virginia has mainly conformed to the federal itemized deductions changes and eliminations including employee business expenses.

You can take the state and local tax deductions (property, sales) but not the state income tax deductions.  Personal property taxes based on the value of your vehicle are deductible. but vehicle registration fees are not deductible because they are determined by the weight of the vehicle. There is a cap of $10,000 for these deductions that mirrors the federal.  

Another item to note is if you itemize on your federal return, you will have to itemize for the state.  And, if you use the standard federal deduction instead, then you must utilize Virginia's state deduction.

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