Tax Type
Individual Income Tax
Description
Retirement income from Florida
Topic
Taxable Income
Date Issued
04-12-1990
April 12, 1990
Re: §58.1-1821 Application: Individual Income Tax
Dear ****
This will reply to your letter of August 11, 1989, on behalf of **** (Taxpayers), seeking correction of an individual income tax assessment for the taxable year 1985.
FACTS
On April 21, 1989, the department notified the Taxpayers that based on information provided by the Internal Revenue Service, an adjustment was made to their 1985 Virginia income tax return, which resulted in an additional tax due. The additional income was received by the Taxpayers while residents of Virginia. The Taxpayers contest the assessment contending that the money received by the Taxpayers represented a distribution from a retirement plan set up while one of the Taxpayers was employed by a Florida bank, and is therefore not subject to Virginia tax.
DETERMINATION
Va. Code §58.1-322 states that "[t]he Virginia taxable income of a resident individual means his federal adjusted gross income for the taxable year, with certain modifications." The income earned by the Taxpayers was properly included in their federal adjusted gross income for the year 1985 since it was received in that taxable year.
For purposes of determining the income tax liability of any individual. Va. Code §58.1-302 defines the term resident to include "every person domiciled in Virginia at any time during the taxable year and every other person who, for an aggregate of more than 183 days of the taxable year, maintained his place of abode within Virginia." The Taxpayers were residents of Virginia at the time of receipt of the funds and as such were subject to the tax laws of Virginia.
Therefore, absent a specific Virginia subtraction or deduction in Va. Code §58.1-322 for this type on income, I find no basis for the correction of the assessment. which has already been paid by the Taxpayers.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner