1. A. Part-year residents. The Virginia adjusted gross income of a part-year resident is computed only with respect to income derived during the resident's period of residence in Virginia determined in the manner prescribed in 23VAC10-110-40 B.
2. B. Nonresidents. The Virginia adjusted gross income of a nonresident is computed as though such person had been a resident of Virginia during the full taxable year.

3. C. Military personnel.

   1. 1. Military pay. Armed forces personnel who are not domiciliary residents of Virginia and who maintain no place of abode within the Commonwealth are not subject to Virginia income tax on compensation received from armed forces service. However, a member of the armed forces who is a domiciliary resident of Virginia is subject to tax on such income in the same manner as any other resident.

   2. 2. Other income. Pursuant to the Soldiers' and Sailors' Relief Act (50 USC § 574), compensation for military or naval service of any person residing in Virginia solely by reason of compliance with military or naval orders is not subject to income taxation in Virginia, unless such person is a domiciliary resident of the Commonwealth. Similarly, military personnel who are domiciliary residents of Virginia do not attain a domicile elsewhere solely by virtue of their presence outside of the state in compliance with military or naval orders. Therefore, a Virginia resident who enters military service is subject to Virginia income tax on all of the resident's taxable income, regardless of where the resident is stationed.

      However, members of the armed forces who derive income from Virginia sources, excluding compensation for military or naval service, are subject to Virginia tax on such income in the same manner as any nonresident. For example, the compensation derived by an armed forces member from a part-time job is subject to Virginia income tax on such compensation. Similarly, a member of the armed forces may subject himself to taxation in Virginia by acquiring a new legal domicile herein.

   3. 3. Spouse of armed forces member. The residency status of a spouse of a member of the armed forces, who is not a member of the armed forces, shall be determined without regard to this section.
4. D. See § 58.15 of the Code of Virginia for provisions defining rates of interest and methods to determine interest and additions to tax. See also 23VAC10-110-30 B 3 for Domicile Generally. See also 23VAC10-110-190 B for allocation of deductions and exemptions between resident and nonresident spouses.

Statutory Authority

§ 58.1-203 of the Code of Virginia.

Historical Notes

Derived from VR630-2-321; adopted September 19, 1984; revised eff. January 1, 1985 with retroactive effect according to Va. Code § 58-48.6 (recodified as Section 58.1-203); amended, Virginia Register Volume 40, Issue 24, eff. September 28, 2024.