Military personnel stationed inside or outside Virginia may be eligible to subtract up to $15,000 of qualifying military basic pay received during the taxable year if they are on extended active duty for more than 90 consecutive days. If qualifying basic pay exceeds $15,000, the subtraction is reduced dollar-for-dollar by the excess amount. For example, if qualifying basic pay is $16,000, the allowable subtraction is $14,000. The subtraction is fully phased out when qualifying military basic pay reaches $30,000. On a joint Virginia return, each spouse who independently qualifies may claim the subtraction.

To enter the Basic Military Pay subtraction in TaxAct:

TaxAct Online

1. From within the TaxAct return, navigate to the State tab from the side menu.
2. Click Virginia under the State tab to access the Virginia Quick Q&A Topics screen.
3. Click Adjustments to expand the category and then click Subtractions from income.
4. Click Other Subtractions.
5. Click Yes.
6. Select 38-Basic Military Pay from the drop-down menu and enter the appropriate amount(s).

Desktop

1. From within the TaxAct return, navigate to the Q&A tab via the menu bar at the top of the program.
2. Navigate to the State tab and click Continue.
3. Click Yes to start the State Q&A process.
4. On the page titled Review and edit items on your Virginia State Taxes, select Military Benefits Subtraction.
5. Select 38-Basic Military Pay from the drop-down menu and enter the appropriate amount(s).