You can deduct up to $15,000 of military basic pay from your Virginia taxable income if you are a resident serving on active duty for 90 days or more and earn less than $30,000 in basic pay. For every $1 of income over $15,000, the most you can deduct drops by $1.
There is nothing to apply for in advance. Claim the deduction on your Virginia income tax return for the year, and keep your Leave and Earnings Statements with your tax records.
Your Leave and Earnings Statements or W-2 showing your military basic pay, and your orders showing at least 90 days of active duty.
