Tax Bulletin 20-1: Important Information Regarding 2019 Virginia Income Tax Returns

19 Feb 2020 1:32 PM | Anonymous

Important Information Regarding 2019 Virginia Income Tax Returns: Virginia's Conformity to the Internal Revenue Code Advanced to Dec. 31, 2019

Under emergency legislation enacted by the 2020 General Assembly, Virginia's date of conformity to the terms of the Internal Revenue Code will advance from Dec. 31, 2018, to Dec. 31, 2019. This legislation also allows Virginia to generally conform to the Further Consolidated Appropriations Act, 2020.

However, it specifically deconforms Virginia from a provision that reduces the medical expense deduction floor for Taxable Year 2019 and Taxable Year 2020. Virginia generally allows taxpayers to claim a deduction on their state returns for most itemized deductions that were claimed for federal income tax purposes, including the medical expense deduction. Such deduction is equal to the amount of a taxpayer’s eligible medical expenses in excess of a deduction floor. The deduction floor was set to increase from 7.5% of federal adjusted gross income to 10% for Taxable Year 2019. The Further Consolidated Appropriations Act, 2020 extended the 7.5% deduction floor for Taxable Year 2019 and Taxable Year 2020. Because Virginia deconforms from this provision, Virginia’s deduction floor will be 10% for Taxable Year 2019 and Taxable Year 2020.

The legislation enacted by the 2020 General Assembly also allows Virginia to conform to a federal tax law stating that the Virginia Beach Tragedy Fund is entitled to federal tax exempt status. In addition, this ensures that cash contributions made specifically for the relief of victims or families of victims of the tragedy qualify for the charitable contributions deduction. 

Tax Bulletin 20-1 provides more detail and information regarding the conformity adjustments that may be necessary on Taxable Year 2019 income tax returns.    

View the Tax Bulletin

If you have additional questions, go to www.tax.virginia.gov, or contact us at 804.367.8031 for individual income tax questions and 804.367.8037 for business tax questions.
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