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VRS Logo Monday, October 19, 2020

Counseling Center
1111 East Main Street
Richmond, VA 23219
8:30 a.m.–4:00 p.m.
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Administrative Offices
1200 East Main Street
Richmond, VA 23219

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Income Taxes

Your retirement benefit is subject to federal income taxes as well as state income taxes if you live in a state that taxes income. The exception is if you retired under the guaranteed benefit formula for work-related disability.

If you live outside Virginia, contact your state’s taxation agency for information on state income taxes.

Imputed Income

If the value of your Basic Group Life Insurance is more than $50,000, the cost of the amount over $50,000 is subject to income and FICA taxes. VRS automatically withholds these taxes and provides information to you every year on a W-2.

Tax Information for Retired Public Safety Officers

If you are a retired public safety officer, you may be able to exclude a certain amount per year from your retirement income used for qualified health insurance premiums or long-term care insurance premiums. Premiums covering yourself as well as your spouse and/or dependents are eligible for this exclusion.

Your 1099-R form, which is available online through your myVRS account, shows the amount of health insurance premiums VRS deducted from your monthly retirement benefit, less any health insurance credit you may have received. To find out if you are eligible for benefits under the H.E.L.P. Retirees Act, consult a tax advisor or contact the IRS at 1-800-829-1040 or visit

myVRS Income Tax Tool

An income tax calculation tool available through myVRS allows you to submit tax withholding changes online. After you submit the changes, your account is updated automatically to reflect the changes. You also can use the tool to see the most advantageous tax withholding for you before you make changes.

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