I realize I do not need to file a state return this year, but I bought the state option and this year's income is a large reduction from last year.
i am concerned that Virginia will not like negative income numbers. I would have expected them to be zero.
The instructions for Virginia Form 760 state that Line 9 Virginia Adjusted Gross Income is line 3 (subtotal of Federal AGI + Virginia additions) less the subtotal of subtractions on line 8. The instructions do not state that Line 9 has to be zero if line 8 is greater than line 3, so reporting it as a negative number would be correct.