Questions & Answers

What is the Basic Military Pay Subtraction?

Code: 38

Some taxpayers who qualify as military personnel stationed inside or outside Virginia and who are on extended active duty for more than 90 consecutive days can subtract up to $15,000 of military basic pay received during the taxable year.

Enter here the subtraction amount that you qualify for. Keep reading to determine how to calculate your subtraction.

If your military basic pay does not exceed $15,000, then you can subtract the entire amount.

If your military basic pay is over $15,000, then the subtraction is reduced by the amount exceeding $15,000. For every $1.00 of income over $15,000, the maximum subtraction is reduced by $1.00. If your military basic pay is $30,000 or more, you are not entitled to a subtraction.

For example, if your military basic pay is $18,000, then your maximum subtraction is $12,000. If your military basic pay is $29,000, then your maximum subtraction is $1,000.

On joint returns, each spouse can qualify for the subtraction. If you claim this subtraction, you cannot claim a Credit for Low Income Individuals or the Virginia Earned Income Credit.

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