Tax Type
Individual Income Tax
Description
Charitable contributions when not itemizing deductions
Topic
Taxable Income
Date Issued
01-18-1989
January 18, 1989
Re: Request for Ruling: Individual Income Tax
Dear**************
This will reply to your letter dated November 7, 1988 regarding the state income tax consequences of claiming the 1986 federal charitable contribution deduction for nonitemizers.
Virginia has no provision similar to the federal charitable contribution deduction claimed on your 1986 return. Therefore, because you did not itemize deductions on your federal income tax return, Virginia law does not allow you to itemize deductions for state income tax purposes. The department has earlier issued a ruling on this issue which I feel will answer the points raised in your correspondence. Please see the enclosed copy of Public Document 87-182.
The General Assembly enacted significant Virginia tax reform during 1987 in response to the federal Tax Reform Act of 1986. These changes, however, were effective for taxable years beginning on and after January 1, 1987 and therefore would not have applied to your 1986 return. Under the Virginia Tax Reform Act of 1987, $146.7 million was returned to Virginia's individual taxpayers in fiscal year 1988, and $198 million and $231.5 million more will be returned in fiscal years 1989 and 1990, respectively. Further, Governor Baliles is currently considering what additional tax reform measures would be appropriate in light of the state's budget surplus.
Per your request, I am enclosing a list of the Members of the House and Senate Finance Committees for the 1988-1989 General Assembly.
If you have any further questions regarding this matter, please contact the department.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner