Where on the Virginia tax return do I claim a deduction for US treasury earnings?

Alfonso
Alfonso Member Posts: 1 Newcomer
in Credits/Deductions

Where on the Virginia tax return do I claim a deduction for US treasury earnings?

Best Answer

  • GeorgeM
    GeorgeM FreeTaxUSA Agent Posts: 19
    Answer ✓

    Hello Alfonso:

    You should not have to claim any deduction or subtraction on your VA tax return for the interest you received from owning a U.S. Treasury security.   When the U.S. Treasury interest is entered in Box 3 on the screen for 1099-INT, our software will automatically exclude such income from your VA tax return. 

    When you review your VA tax return—VA760CG—you will see on line 1 your Federal Adjusted Gross Income amount which includes your U.S. Treasury interest.  However, your VA Schedule ADJ, has a category for subtractions, and on line 4 of Schedule ADJ, you should see your U.S. Treasury interest.  Your U.S. Treasury interest on line 4 of Schedule ADJ is thereafter carried over to line 7 on your VA tax return and is listed on line 7 as a subtraction from your Federal AGI. 

    Your U.S. Treasury interest is subtracted from your Federal AGI and the resulting amount on line 9 of your VA tax return is your VA AGI.  

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