Why was my Virginia Schedule ADJ subtraction revoked by the Controller?

[chenjing]

TurboTax originally came up with a subtraction on Line 6B of Schedule ADJ with code 39. This was revoked and the corresponding tax benefit canceled. I looked up the line instruction of Schedule ADJ for code 39. It says: "Federal and State Employees. Any individual who qualifies as a federal or state employee earning $15,000 or less in annual salary from all employment can subtract up to $15,000 of the salary from that state or federal job. If both spouses on a joint return qualify, each spouse may claim the subtraction."

My husband and I filed jointly for 2023. Both of us work for a state university, hence I believe we are considered state employees. I also saw another person asking about status of state employment in this forum, and the answer was yes. Since my husband just started working towards the end of the year, he received less than $15,000 of salary for the whole year. So, he should be qualified according to the above description. Could somebody help out here? Thanks!

[LenaH]

It depends. Did the letter from the Controller give an explanation on why they disallowed the deduction? The total salary from a federal or state government job under the threshold of $15,000 can be deducted. However, if yourself or your husband held other employment during the year, which in total exceeded $15,000, then the deduction would not be allowed. 

Per the State of Virginia, as an example, an individual who earned $10,000 in a federal or state government job and $15,000 in a private sector job during the taxable year would not be eligible for the subtraction.

To speak with a representative at the Virginia Tax Department, please call 804-367-8031.