Retirement income in Virginia
Varies
Does Virginia Tax Retirement Income?
Short answer: Partly. Pensions and 401(k)/IRA withdrawals are taxable, but taxpayers 65+ may claim a $12,000 age deduction, reduced dollar-for-dollar when adjusted AGI exceeds $50,000 single / $75,000 married. Classified as partial because of the general age deduction, which applies to any income rather than only retirement income. Taxpayers born on or before January 1, 1939 get the full deduction regardless of income.
Pensions, traditional IRA and 401(k) withdrawals are taxable federally either way; Roth withdrawals after 59½ (5-year rule met) are tax-free.
Records to keep: Keep your state return, W-2s and 1099s (1099-R, SSA-1099), and any state credit worksheets. Check your state revenue department's current-year instructions before you file.
Retirement income in Virginia
Varies
Individuals / Personal Taxes
Partly. Pensions and 401(k)/IRA withdrawals are taxable, but taxpayers 65+ may claim a $12,000 age deduction, reduced dollar-for-dollar when adjusted AGI exceeds $50,000 single / $75,000 married. Classified as partial because of the general age deduction, which applies to any income rather than only retirement income. Taxpayers born on or before January 1, 1939 get the full deduction regardless of income.
Business justification
Partly. Pensions and 401(k)/IRA withdrawals are taxable, but taxpayers 65+ may claim a $12,000 age deduction, reduced dollar-for-dollar when adjusted AGI exceeds $50,000 single / $75,000 married. Classified as partial because of the general age deduction, which applies to any income rather than only retirement income. Taxpayers born on or before January 1, 1939 get the full deduction regardless of income. Pensions, traditional IRA and 401(k) withdrawals are taxable federally either way; Roth withdrawals after 59½ (5-year rule met) are tax-free.
Category
- Personal Tax Deductions