Caroline (85) is a Virginia resident who is filing her federal return as a qualifying surviving spouse. She is required to file a Virginia tax return. In addition to her other income, she won $1,000 in prizes from the Virginia Lottery during the tax year, including $300 on January 30th, $50 on August 15th, and $650 on December 31st. How are these prizes reported on her Virginia tax return? Caroline is allowed to subtract $50 from her federal adjusted gross income on her Virginia return. Caroline is allowed to subtract $300 from her federal adjusted gross income on her Virginia return. Caroline is allowed to subtract $350 from her federal adjusted gross income on her Virginia return. Caroline is allowed to subtract $1,000 from her federal adjusted gross income on her Virginia return