Tax Type
Individual Income Tax
Description
Subtractions from federal adjusted gross income; Occupational disability income
Topic
Taxable Income
Date Issued
05-07-1997
May 7, 1997
Re: Request for Ruling: Individual Income Tax
Dear*****************
This will respond to your letter of April 17, 1997, concerning the taxability of occupational disability benefits in Virginia.
Code of Virginia § 58.1-322 defines Virginia taxable income of a resident individual as his federal adjusted gross income for the taxable year as modified by specific additions, subtractions, deductions, and exemptions. In the instant case, the Internal Revenue Service has ruled that benefits paid as occupational disability benefits would be exempt from taxation at the federal level. To the extent that these benefits are exempt from federal taxation and there is no addition at the Virginia level to tax them, they would also be exempt from Virginia taxation.
If you have any questions regarding this ruling, please contact *******at********.
Sincerely,
Danny M. Payne
Tax Commissioner
OTP/12457P
Rulings of the Tax Commissioner