Bulletin Number
VTB 89-1
Tax Type
Individual Income Tax
Description
Individual Income Tax: "Crime Solver Rewards'
Topic
Taxable Income
Date Issued
01-06-1989
Virginia Department of Taxation
DATE: January 6, 1988
SUBJECT: Individual Income Tax: "Crime Solver Rewards"
This is to advise you of an administrative change in the method of claiming the Virginia individual income tax deduction for law rewards, commonly referred to as "Crime Solver Rewards."
In some early income tax seminars, attendees were instructed to the deduction for crime solver rewards by reducing the adjusted gross income (FAGI) reported on the Virginia income tax return. After re-evaluating this position, it has been determined that the crime solver reward should be claimed
as a subtraction from FAGI in the same manner as other income reported on the federal return, but exempt from Virginia income taxation. The amount of the crime solver reward should be on the back of the Virginia income tax return on the line designated "other", in the section entitled "Subtractions
From Adjusted Gross Income".
Tax Bulletin 88-9 contained information about crime solver rewards. That information is restated below:
Deduction for Law Enforcement Rewards: House Bill 916 (Chapter 756) amends Va. Code § 58.1-322 to provide a deduction from federal adjusted gross income of up to $1,000 for rewards providing information to any law enforcement officials or agencies in solving crimes. This deduction, however, does not apply to an individual employed by or under contract with a law enforcement agency, a victim or the perpetrator of the crime for which the reward was paid, or to any other person compensated for the investigation of crimes or accidents.
Effective Date: Taxable years beginning on and after January 1, 1988.
Anyone having questions concerning this deduction should write the department at P.O. Box 1115, Richmond, Virginia 23208-1115 or call (804) 367-8031.
Tax Bulletins