                                 CODE OF VIRGINIA

MARRIED INDIVIDUALS (§ 58.1-324)

A. If the federal taxable income of married individuals is determined on
separate federal returns, their Virginia taxable incomes shall be separately
determined.

B. If the federal taxable income of married individuals is determined on a joint
federal return, or if neither files a federal return:

   1. Their tax shall be determined on their joint Virginia taxable income; or

   2. Separate taxes may be determined on their separate Virginia taxable incomes
   if they so elect.

C. Where married individuals have not separately reported and claimed items of
income, exemptions and deductions for federal income tax purposes, and have not
elected to file a joint Virginia income tax return, such items allowable for
Virginia income tax purposes shall be allocated and adjusted as follows:

   1. Income shall be allocated to the spouse who earned the income or with
   respect to whose property the income is attributable.

   2. Allowable deductions with respect to trade, business, production of income,
   or employment shall be allocated to the spouse to whom attributable.

   3. Nonbusiness deductions, where properly taken for federal income tax
   purposes, shall be allowable for Virginia income tax purposes, but shall be
   allocable between married individuals as they may mutually agree. For this
   purpose, &#8220;nonbusiness deductions&#8221; consist of allowable deductions
   not described in subdivision 2.

   4. Where the standard deduction or low income allowance is properly taken
   pursuant to subdivision 1 a of &#xA7; 58.1-322.03, such deduction or allowance
   shall be allocable between married individuals as they may mutually agree.

   5. Personal exemptions properly allowable for federal income tax purposes
   shall be allocated for Virginia income tax purposes as married individuals may
   mutually agree; however, exemptions for taxpayer and spouse together with
   exemptions for old age and blindness must be allocated respectively to the
   spouse to whom they relate.

D. Where allocations are permitted to be made under subsection C pursuant to
agreement between married individuals, and they have failed to agree as to those
allocations, such allocations shall be made between them in a manner
corresponding to the treatment for federal income tax purposes of the items
involved, under regulations prescribed by the Department.

HISTORY: Code 1950, §§ 58-151.012, 58-151.013; 1971, Ex. Sess., c. 171; 1972,
c. 827; 1973, cc. 198, 345, 458; 1974, c. 682; 1975, c. 46; 1976, cc. 528, 694,
781; 1977, cc. 297, 612; 1978, cc. 67, 158; 1979, cc. 226, 596; 1981, cc. 402,
414; 1982, c. 633; 1983, cc. 452, 472; 1984, cc. 153, 162, 636, 674, 675, 729;
2017, c. 444; 2020, c. 900.