Tax Type
Individual Income Tax
Description
Standard deduction for taxpayer who itemizes for federal purposes.
Topic
Appropriateness of Audit Methodology
Date Issued
07-01-1982
July l, 1982
Re: Request for Ruling/Individual Income Tax
Dear *************
This will reply to your letter of May 25, 1982 in which you request a ruling on the applicability of the Virginia standard deduction to a taxpayer who itemizes deductions for federal purposes.
As the result of legislation effective in 1971, Virginia has generally conformed to the federal income tax laws. Consequently Virginia taxable income begins with federal adjusted gross income subject to certain additions, subtractions, and modifications. One of the allowable subtractions is the amount allowable for itemized deductions for federal income tax purposes where the taxpayer has elected for the taxable year to itemize deductions on his federal return, but reduced by the amount of income taxes imposed by this State or any other taxing jurisdiction 2nd deducted on his federal return (Virginia Code §58-151.013(d)(1).
Virginia Code § 58-151.013(d)(2) allows a deduction for the Virginia standard deduction provided the taxpayer has not itemized deductions on his federal return. Thus, by statute, a taxpayer may elect either the standard deduction or itemized deductions, depending upon which election is made for federal purposes.
The intent of these provisions is to retain conformity with federal income tax treatment. This reduces the costs of administering and insuring compliance with Virginia's income tax law. Legislation which would alter this particular element of conformity has been before the General Assembly several times, most recently in 1981, but has not received favorable consideration.
The current law is quite specific with respect to the allowable deductions; therefore, we have no alternative but to require state itemization where federal itemization has been elected.
Sincerely,
W. H. Forst
State Tax Commissioner
Rulings of the Tax Commissioner