State and Local Income Taxes Claimed on Schedule A
Taxpayers are allowed to deduct their real and personal property taxes rst before deducting any income taxes. This will
minimize the amount on Line 11 of the Form 760, Line 12 of the Form 760PY, or Line 11 of the Form 763.
If Schedule A, Line 5d is equal to or less than $10,000 ($5,000 if married ling separately), then enter the amount of state
and local taxes reported on Schedule A, Line 5a on Line 11 of Form 760, Line 12 of the Form 760PY, or Line 11 of the Form
763 and proceed to Line 12 of Form 760, Line 13 of the Form 760PY, or Line 12 of the Form 763 (See Example 1).
If Schedule A, Line 5d is greater than $10,000 ($5,000 if married ling separately), add Schedule A, Lines 5b and 5c:
• If the result is greater than or equal to $10,000 ($5,000 if married ling separately), enter $0 on Line 11 of Form
760, Line 12 of the Form 760PY, or Line 11 of the Form 763 (See Example 2).
• If the result is less than $10,000 ($5,000 if married ling separately), subtract the sum of Lines 5b and 5c from
Line 5e and enter result on Line 11 of Form 760, Line 12 of the Form 760PY, or Line 11 of the Form 763 (See
Example 3).
Example 1
Schedule A Form 760 or Form 763 Form 760PY
Line 5a* Line 5b Line 5c Line 5d Line 5e Line 10 Line 11 Line 11 Line 12
4,000 2,000 2,000 8,000 8,000 25,000 4,000 25,000 4,000
*State & Local Income Tax
The amount in Line 5d, $8,000, is less than $10,000, so you would take the $4,000 from Line 5a, enter it on Line 11 of Form
760, Line 12 of the Form 760PY, or Line 11 of the Form 763 and proceed to Line 12 of Form 760, Line 13 of the Form 760PY,
or Line 12 of the Form 763.
Example 2
Schedule A Form 760 or Form 763 Form 760PY
Line 5a* Line 5b Line 5c Line 5d Line 5e Line 10 Line 11 Line 11 Line 12
3,000 12,000 2,000 17,000 10,000 25,000 0 25,000 0
*State & Local Income Tax
The amount in Line 5d, $17,000, is greater than $10,000, so you would add the $12,000 from Line 5b to the $2,000 from
Line 5c. The resulting $14,000 is greater than $10,000, so you would enter $0 on Line 11 of Form 760, Line 12 of the Form
760PY, or Line 11 of the Form 763.
Example 3
Schedule A Form 760 or Form 763 Form 760PY
Line 5a* Line 5b Line 5c Line 5d Line 5e Line 10 Line 11 Line 11 Line 12
5,000 7,000 1,000 13,000 10,000 25,000 2,000 25,000 2,000
*State & Local Income Tax
The amount in Line 5d, $13,000, is greater than $10,000, so you would add the $7,000 from Line 5b to the $1,000 from
Line 5c. The resulting $8,000 is less than $10,000, so you would enter $2,000 on Line 11 of Form 760, Line 12 of the Form
760PY, or Line 11 of the Form 763.
Mortgage Insurance Premiums
Under emergency legislation enacted by the 2020 General Assembly, Virginia’s date of conformity to the terms of the
Internal Revenue Code will advance from December 31, 2018 to December 31, 2019.
The federal legislation extends for three years tax provisions, commonly known as “extenders,” which generally expired at
the end of 2017. Advancing the date of conformity to December 31, 2019, will allow Virginia to conform to these extenders.
One extender deals with the treatment of qualied mortgage insurance premiums as interest for purposes of the mortgage
interest deduction.
For Taxable Y
ear 2018, qualified mortgage insurance premiums reported in the Interest You Paid section of your
federal Schedule A must be entered on Line 16 in the Other Itemized Deductions section of your Virginia Schedule A.