Virginia Tax Commissioner Determines Income Taxpayers Eligible for Basic Military Pay Subtraction

The Virginia Tax Commissioner Aug. 31, 2022, determined in a letter ruling that Taxpayers, a married couple, were eligible to claim the basic military pay subtraction. Taxpayers claimed subtractions for Taxpayer-Husband’s National Guard and basic military pay on their individual income tax return. The Department of Taxation allowed the subtraction for National Guard compensation but disallowed the subtraction for basic military pay and issued an assessment. The commissioner found: 1) Taxpayer-Husband’s military orders and leave and earning statements showed that he was on active duty for more than 90 consecutive days and his basic pay didn’t exceed $15,000 during the ...