How to apply for Virginia Military Benefits Subtraction

Who it's for

Virginia lets taxpayers subtract up to $40,000 of eligible military benefits from state taxable income (tax year 2025 and later) — military retirement pay, Survivor Benefit Plan payments to a surviving spouse, and other military benefits paid to a veteran's surviving spouse. There is no age requirement. Both spouses may each claim the subtraction if each receives eligible benefits. Claimed on the Virginia income tax return — no separate application.

What you'll need

• Virginia income tax return (the subtracted benefits must appear as income on the federal return)

Where to apply

What to say when you call

"Hello, I'm calling to ask about Virginia Military Benefits Subtraction. I'd like to know whether I may qualify, what documents I need, and whether I can apply online, by mail, by phone, or in person. I understand I may need virginia income tax return (the subtracted benefits must appear as income on the federal return) — is anything else required? What is the best next step?"

Tip: have a pen ready, ask for the person's name, and write down any case or reference number they give you.

Step by step

1. Confirm that you receive eligible military benefits — military retirement pay, Survivor Benefit Plan payments, or other military benefits paid to a veteran's surviving spouse — and that those benefits appear as income on your federal tax return.
2. Gather your completed federal tax return, which shows the eligible military benefits you received during the tax year.
3. File your Virginia income tax return. Report the eligible military benefits as income, then claim the subtraction on that same return — no separate application is needed.
4. Subtract up to $40,000 of eligible military benefits from your Virginia taxable income directly on the return. If both spouses each receive eligible benefits, each spouse may claim the subtraction separately.
5. Submit your Virginia income tax return online or by phone at 1-804-367-8031 if you have questions or need assistance from the Virginia Department of Taxation.

What to expect: After you file your Virginia income tax return with the subtraction claimed, the Virginia Department of Taxation will process your return. Processing times vary, so contact the agency at 1-804-367-8031 for an estimate. Because this is an annual subtraction, you will need to claim it again on each year's Virginia income tax return. Keep in mind that the subtraction applies only to eligible military benefits you actually received and reported on your federal return, so the amount may differ from year to year based on what you report.

Renewals

annual