Notices
Notices
AARP Foundation Tax-Aide creates materials for exclusive use by Tax-Aide volunteers only. All other use is prohibited unless written permission is granted.
The TaxAide Scope Manual says Form 1098-T is not in scope for “Boxes 4 and 6 (Adjustments) if correction to last year’s return or recapture of a prior education credit is necessary.” If the taxpayer did not take an education credit or did not benefit from an education credit in the prior year, there is no correction or recapture to be concerned about. Check the prior year return for an education credit. If there is no education credit, the return is in scope.
Virginia Department of Taxation, Policy Division, says nothing in the law authorizing the subtraction disallows it merely because it is received by the divorced spouse of the service member if the income is otherwise eligible. Caveat: This is a position that is not specifically or explicitly supported by the language of the law (which specifically and explicitly includes spouses). Thus, a taxpayer taking the subtraction as a divorced spouse should be aware that the Commissioner of the Revenue could decide against allowing the subtraction. Until such a position is taken, and a decision issued, we can include the subtraction in returns of eligible divorced spouses of military members who are receiving alimony payments directly from Defense Financial Accounting Services.
The new subtraction (#60) for certain military benefits includes:
military retirement income received for service in the Armed Forces of the United States,
qualified military benefits received pursuant to a section of the Internal Revenue Code regarding certain military benefits,
benefits paid to the surviving spouse of a veteran of the Armed Forces of the United States under the Survivor Benefit Plan program established by the U.S. Department of Defense, and
military benefits paid to the surviving spouse of a veteran of the Armed Forces of the United States.
If this subtraction is claimed, the taxpayer cannot claim another subtraction, deduction, credit, or exemption for the same income.
Since our VA1 website is a Google site, you will have to use an incognito window to access our Virginia Tax-Aide website from a Tax-Aide Chromebook. See Accessing Our Virginia Tax-Aide Website Using Incognito Window. For easy access to the Virginia Tax-Aide website from AARP Chromebooks, have volunteers add a bookmark to their bookmarks bar. See Bookmarking the Virginia Tax-Aide Website.
This will let DCs and TRCs see what dates are available for scheduling a Google "Super" Meet (recording the session with up to 500 people attending). The process for requesting a meeting is here.