Bulletin Number
VTB 83-13
Tax Type
Corporation Income Tax
Individual Income Tax
Description
Subtractions from Social Security Benefits, Property Donated to Schools, Underpayment of Estimated Tax
Topic
Computation of Income
Date Issued
06-01-1983
Virginia Department of Taxation
83-13
DATE: June 1, 1983 SUBJECT: Income and Estimated Taxes: 1983 Legislative changes
The 1983 General Assembly enacted several laws which affect Virginia income and estimated income tax returns. The purpose of this bulletin is to announce these changes.
Subtraction For Social Security Benefits
§ 53-151.013(c)(3)(G) was added to provide a subtraction in the computation of Virginia taxable income for benefits received under Title II of the Social Security Act, to the extent included in federal adjusted gross income.
While such benefits are not presently included in federal adjusted gross income, this bill provides a subtraction to exempt them from Virginia taxation if the Internal Revenue Code is amended to include them in federal adjusted gross income. The effective date is July 1, 1983. (Chapter 472, Senate Bill 358).
Subtractions For Property Donated To Schools
§ 58-151.013(c)(11) was added and § 59-151.032(c) was amended to provide a subtraction in the computation of Virginia taxable income for the fair market value, to the extent not deducted from federal adjusted gross income, of qualified technological equipment donated to a school division, a private nonprofit elementary or secondary school, a nonprofit or state-supported, degree-granting, accredited institution of higher education, or a science center located in Virginia. The subtraction may be claimed by a corporation, individual, fiduciary, partnership or subchapter S corporation.
"Qualified technological equipment" means usable computers or other sophisticated technological equipment found by the Department of Education to be suitable for direct use in the level of education offered by the donee institution, and actually used for such purpose.
The Department of Education will determine the fair market value of the donated equipment and provide a statement of fair market value to the donor. A copy of this statement must be attached to the income tax return in order to claim the subtraction. The bill is effective only for taxable years beginning in 1983.
For additional information on qualifying for this subtraction, contact:
Mr. Gordon Creasy, Associate Director Instructional Media and Technology
Virginia Department of Education
Post Office Box 60
Richmond, Virginia 23216
(804) 225-2958
(Chapter 452, House Bill 373)
Underpayment of Estimated Income Tax
§§ 58-151.23 and 58-151.40 were amended to increase the percentage of tax that must be remitted by means of estimated and/or withholding tax payments for individuals and corporations. The percentage of tax that must be remitted through each installment date for individuals is increased from 70% to 80%, and the percentage for corporations is increased form 80% to 90%. This bill is effective for taxable years beginning on and after January 1, 1984. (Chapter 561, Senate Bill 334).
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