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Virginia Tax Commissioner Finds Taxpayers Entitled to Foreign Source Retirement Income Credit

May 31, 2022, 5:00 AM

The Virginia Tax Commissioner March 22 determined in a letter ruling that Taxpayers were entitled to a foreign source retirement income credit. Taxpayers, a married couple, filed Virginia part-year resident individual income tax returns, claiming a credit for tax paid to a foreign country on retirement income. The Department of Taxation issued an assessment and disallowed the claimed credit, finding Taxpayers should have filed full-year resident returns. Taxpayers protested. The commissioner noted that: 1) Taxpayers filed amended returns and reclaimed the credit; 2) no further action was required for the 2018 assessment because Taxpayers paid the balance; 3) Taxpayers provided ...