Tax Type
Individual Income Tax
Description
Reimbursement for moving expenses; Modification to Federal Adjusted Gross Income
Topic
Taxable Income
Date Issued
07-29-1985
July 29, 1985
Dear ******
This is in reply to your letter of April 30, 1985 in which you make an application for correction of the additional individual income tax assessed to you and your wife for taxable year 1982.
FACTS
You moved to Virginia from overseas during 1981 and established a Virginia domicile. During taxable year 1982 you received reimbursement for the moving expense deduction claimed on your 1981 return. Under federal law, the amount of reimbursement received is taxable income in the year received. Therefore, you included this amount in federal adjusted gross income on your federal income tax return. You excluded the amount of moving expense reimbursement from the amount reported as federal adjusted gross income on your 1982 Virginia return. The department, during a post filing examination of your return, discovered the discrepancy between the amount of federal adjusted gross income reported on your 1982 federal income tax return and the amount reported on your 1982 Virginia income tax return. A Notice of Assessment was issued November 2, 1984 for additional individual income tax and interest.
You now petition for relief from this assessment on the basis that this was reimbursement for expenses incurred before you moved to Virginia.
DETERMINATION
Virginia Code § 58.1-322 states that "the Virginia taxable income of a resident individual means his federal adjusted gross income for the taxable year' with certain statutory modifications. Thus, Virginia has elected to conform its tax code to that of the federal government and to treat income in substantially the same manner as the federal government. the primary motive in doing this was to simplify the tax for both tax administrators and taxpayers.
Of the subtractions, deductions and modifications to federal adjusted gross income enumerated in Virginia Code § 58.1-322 as noted above, none provides for the exclusion from Virginia taxable income of income that is reimbursement for expenses claimed in a year in which a taxpayer was not a Virginia resident. While we appreciate your circumstances and empathize with your position, absent specific statutory authority to do so, the department cannot permit you to deduct the moving expense reimbursement from your federal adjusted gross income.
Therefore, based on the foregoing, the additional tax and interest was properly assessed and is due and payable.
W. H. Forst
Tax Commissioner
Dear ******
This is in reply to your letter of April 30, 1985 in which you make an application for correction of the additional individual income tax assessed to you and your wife for taxable year 1982.
FACTS
You moved to Virginia from overseas during 1981 and established a Virginia domicile. During taxable year 1982 you received reimbursement for the moving expense deduction claimed on your 1981 return. Under federal law, the amount of reimbursement received is taxable income in the year received. Therefore, you included this amount in federal adjusted gross income on your federal income tax return. You excluded the amount of moving expense reimbursement from the amount reported as federal adjusted gross income on your 1982 Virginia return. The department, during a post filing examination of your return, discovered the discrepancy between the amount of federal adjusted gross income reported on your 1982 federal income tax return and the amount reported on your 1982 Virginia income tax return. A Notice of Assessment was issued November 2, 1984 for additional individual income tax and interest.
You now petition for relief from this assessment on the basis that this was reimbursement for expenses incurred before you moved to Virginia.
DETERMINATION
Virginia Code § 58.1-322 states that "the Virginia taxable income of a resident individual means his federal adjusted gross income for the taxable year' with certain statutory modifications. Thus, Virginia has elected to conform its tax code to that of the federal government and to treat income in substantially the same manner as the federal government. the primary motive in doing this was to simplify the tax for both tax administrators and taxpayers.
Of the subtractions, deductions and modifications to federal adjusted gross income enumerated in Virginia Code § 58.1-322 as noted above, none provides for the exclusion from Virginia taxable income of income that is reimbursement for expenses claimed in a year in which a taxpayer was not a Virginia resident. While we appreciate your circumstances and empathize with your position, absent specific statutory authority to do so, the department cannot permit you to deduct the moving expense reimbursement from your federal adjusted gross income.
Therefore, based on the foregoing, the additional tax and interest was properly assessed and is due and payable.
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner