2011 Virginia Legislators' Tax Guide: Virginia Income TaxAre all of the business-related expenses discussed above deductible on my Virginia income tax return? Since the Virginia income tax is based on income for federal purposes, with certain modifications, your business-related expenses generally would be deductible on your Virginia income tax return to the same extent as on your federal income tax return. For Virginia income tax information, go to the Virginia Department of Taxation website. What items must be considered in determining Virginia taxable income? Virginia requires certain additions and subtractions in computing taxable income. Additions include interest on obligations of other states, interest of federally exempt U.S. obligations, accumulation distribution income, lump-sum distribution income and other additions. Subtractions include income from obligations of the U.S., disability income and other subtractions — such as foreign source income and Virginia College Savings Plans.
|