Issue with TurboTax Virginia for Tax Year 2022

[brooksjc76]

Virginia tax law changed in 2022 to allow a $10,000 deduction of military retired benefits on Line 7 of form VA760CG.  I am the "Taxpayer" in TurboTax and my spouse is the "Spouse".  I entered my 1099-R information from the Defense Finance and Accounting Service with my name and SSN.  The entry in Form VA760CG looks correct, but it does not differentiate between Taxpayer and Spouse.  However, when one dives down into the "Worksheet for Spouse Tax Adjustment and Virginia Taxable Income Allocation", TurboTax has erroneously placed that $10,000 deduction in the "Spouse" column.  Further, in the Virginia "Other Subtraction Statement", TurboTax has placed my Total Qualifying Military Benefits Received amount and the $10,000 Code 60 Military Benefits Subtraction in the "Spouse" column.  Oddly, unlike the other Virginia forms and worksheets, the "Taxpayer" and "Spouse" columns are swapped in the Virginia "Other Subtraction Statement", with the "Spouse" column on the left and the "Taxpayer" column on the right.

[DaveF1006]

Yes, I did notice that the spouse column was listed first and the Taxpayer's column second in other subtraction  statement. I did a mock scenario and the $10,000 did appear correctly in Taxpayer's column, which was the second column.

Now my question to you is, who's name listed first in the return? Yourself or your spouse?

[brooksjc76]

I am listed first as "Taxpayer", my wife second as "Spouse".

There is no issue like this on my Federal return.

[DaveF1006]

Are you using Turbo Tax online or the software version? If using the software version, you have the ability to go to forms and change the order in the Other Subtraction Statement by deleting out the information completely in the spouses column and placing it your column.  Here is what it looks like before and after.

Before

After:

@brooksjc76

[brooksjc76]

Windows 10, Desktop, TurboTax Deluxe.

[brooksjc76]

If it's a net zero change, why did your VA refund go up $575?

[DaveF1006]

I am not sure why the refund amount is different unless I changed something in my mock return. The important thing is that the refund amount shouldn't change and if you performed the step that I suggested, your VA amount should not change. Is this the case?

[brooksjc76]

I moved the gross amount in the "Military Benefits Subtraction" box from the "Spouse" column to the "Taxpayer" column.  This worked, the code 60 $10,000 amount migrated to the "Taxpayer" column by itself and there was no change in my Virginia refund amount.  Hopefully the initial issue can be found as to why it found its way to the "Spouse" column to begin with and a fix instituted in the software.

Thank you.