Tax Type
Individual Income Tax
Description
Residency
Topic
Residency
Date Issued
02-26-1986
February 26, 1986
Re: §58.1-1821 Application/Individual Income Tax
Dear *****************
This will reply to your letter of October 21, 1985, seeking correction of an assessment issued in the above referenced case for taxable year 1983.
FACTS
Prior to moving his family to Virginia in late 1984, Taxpayer was a domiciled resident of New York and an actual resident of Virginia for all of 1983. While Taxpayer's employer paid withholding taxes to Virginia for 1983, in filing his 1983 Virginia income tax return, taxpayer failed to report certain military retirement income received during that year and deposited to his account in a New York bank. Taxpayer contends that such retirement income should not be taxed in Virginia since it originated in Ohio, was deposited in New York and was exempt from state income taxation in New York. Therefore, taxpayer seeks a refund of the assessment, including tax and interest, which was previously paid.
DETERMINATION
§58.1-302 of the Virginia Code states in pertinent part that any person, "who, for an aggregate of more than 183 days of the taxable year, maintained his place of abode within Virginia, whether domiciled in Virginia or not," is a resident subject to Virginia individual income taxation. (Emphasis added)
Furthermore, §58.1-322 of the Code provides that "[t]he Virginia taxable income of a resident individual means his adjusted gross income for the taxable year," with certain additions and subtractions specified therein. There is no provision in Virginia income tax law for the subtraction from federal adjusted gross income of any amount received as U. S. military retirement income regardless of where such income originated or where such income is deposited by a taxpayer.
Based on all of the foregoing, I find no basis for correction of the assessment in this case and taxpayer has properly paid such assessment in full.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner