Example: A taxpayer, age 67, has FAGI for taxable year 1983 of $3,200 ($2,000 in wage income and $1,200 in interest and dividends). The taxpayer had an additional $150 in interest which is exempt from federal but not exempt from state tax. Since the taxpayer is over 65 years of age, he qualifies for the additional $400 deduction. Therefore, his Virginia adjusted gross income is $2,950 ($3,200 (FAGI) plus $150 (taxable interest) less $400 (additional deduction)). Virginia adjusted gross income includes both earned and unearned income. The itemized and standard deductions, child care deduction and personal exemption amounts, except as noted above, may not be subtracted from FAGI in computing Virginia adjusted gross income.
However, members of the armed forces who derive income from Virginia sources, excluding compensation for military or naval service, are subject to Virginia tax on such income in the same manner as any nonresident. For example, the compensation derived by an armed forces member from a part-time job is subject to Virginia income tax on such compensation. Similarly a member of the armed forces may subject himself to taxation in Virginia by acquiring a new legal domicile herein.
(See 23VAC10-110-30 B 3 for Domicile Generally. See 23VAC10-110-190 B for allocation of deductions and exemptions between resident and nonresident spouses.)
23 Va. Admin. Code § 10-110-130
Statutory Authority
§§ 58.1-203 and 58.1-321 of the Code of Virginia.