VA Tax News

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  • 19 Feb 2019 12:23 PM | Anonymous

    Under emergency legislation enacted by the 2019 General Assembly on February 15, 2019, Virginia's date of conformity to the terms of the Internal Revenue Code will advance from February 9, 2018, to December 31, 2018.

    The new legislation allows Virginia to generally conform to the Tax Cuts and Jobs Act and the Bipartisan Budget Act of 2018 for Taxable Year 2018 and after. It also includes Virginia income tax law changes that may affect business taxpayers filing income tax returns for Taxable Year 2018 and after.

    In addition, this legislation provides a refund of up to $110 for an individual or $220 for married persons filing a joint return. In order to receive a refund, taxpayers need to file a complete return for Taxable Year 2018 before July 1, 2019. A refund is allowed up to the amount of a taxpayer’s tax liability after the application of any deductions, subtractions, or credits to which the individual or married persons are otherwise entitled. Such refunds are required to be issued on or after October 1, 2019, but before October 15, 2019.

    This legislation also includes Virginia income tax law changes that may affect individual taxpayers filing income tax returns for Taxable Year 2019 and after. We will publish additional guidance regarding such provisions soon.

    Tax Bulletin 19-1 details the conformity adjustments that may be necessary and provides more information on how the changes affect 2018 Virginia income tax returns.

    View the Tax Bulletin

    Additionally, Virginia will continue to deconform from:

    • Bonus depreciation allowed for certain assets under federal income taxation;
    • Five-year carry back of certain net operating losses (“NOLs”) generated in Taxable Years 2008 and 2009;
    • Tax exclusions related to cancellation of debt income; and
    • Tax deductions related to the application of the applicable high yield debt obligation rules.
    If you have additional questions, please visit our website at www.tax.virginia.gov, or contact us at 804.367.8031 for individual income tax questions and 804.367.8037 for business tax questions.


  • 19 Feb 2019 12:00 PM | Anonymous

    On February 15, the Governor signed legislation conforming Virginia’s tax laws to the federal Tax Cuts and Jobs Act. We are now able to prepare our systems to begin processing 2018 returns, and will start processing over Presidents’ Day weekend.

    All 2018 tax forms and instructions are now available on our website.

    As you know, our systems process returns in the order we receive them – first in/first out.

    Once we process a taxpayer’s return, they can use the Where’s My Refund web app to get up-to-date information about their return status.

    As you’d expect, we already have a significant backlog of returns, so taxpayers will experience slower turnaround times for refunds than they’re accustomed to until we have worked through the backlog.

    We appreciate your help in ensuring that the taxpayer’s address is correct whether they’re filing electronically or on paper.

    Please see the Tax Bulletin distributed earlier today for details about the legislation.


  • 25 Jan 2019 2:43 PM | Anonymous

    For Immediate Release
    Date: 01/25/2019
    Contact: Stephanie M. Benson , Communications Specialist , 804.404.4109 , stephanie.benson@tax.virginia.gov

    New for Taxpayers: Virginia Tax Accepting, Not Processing Returns
    ~Individual Income Tax Filing Season Opens on Jan. 28, 2019~

    RICHMOND, Va. – There is one big difference to individual income tax filing in Virginia this year. Although people can start filing their individual income taxes on Monday, Jan. 28, 2019, Virginia Tax will not be able to start processing returns immediately, as the Virginia General Assembly determines the commonwealth’s response to the federal Tax Cuts and Jobs Act.

    “We’re committed to providing the information necessary to help everyone properly prepare and file this tax season,” said Tax Commissioner Craig M. Burns. “We also want to ensure that returns are processed accurately in as timely a manner as possible.”

    While we are waiting to start processing returns, taxpayers will not have access to refund information using the Where’s My Refund application on the Virginia Tax website. If taxpayers file electronically and receive a message that Virginia Tax has accepted the return, no more action is necessary at this time.

    Last year, Virginia Tax processed more than 4.2 million individual income tax returns with 83 percent of people filing electronically. You’re encouraged to again file electronically this year and request a refund, if you have one coming, via direct deposit. The filing deadline for most people is Wednesday, May 1, 2019.

    For additional information about filing season, including tips to reduce the chance your return is stopped for review, go to www.tax.virginia.gov.

  • 14 Dec 2018 3:54 PM | Anonymous

    Virginia Tax announces that Virginia's interest rates will increase for the first quarter of 2019. The underpayment and overpayment rates for Virginia taxes are 2% higher than the corresponding federal rates. Federal rates for the first quarter of 2019 will increase to 6% for tax underpayments and 6% for tax overpayments by taxpayers other than corporations. Accordingly, the Virginia rates for the first quarter of 2019 will increase to 8% for tax underpayments (assessments) and 8% for tax overpayments (refunds).

    Details about these interest rates can be found in Tax Bulletin 18-6 and in the Laws, Rules, and Decisions section of our website.

    View the Tax Bulletin

    If you have additional questions, go to www.tax.virginia.gov, or contact us at 804.367.8031 for individual income tax questions and 804.367.8037 for business tax questions.


  • 20 Jun 2018 10:15 AM | Anonymous

    Virginia Tax announces that Virginia's interest rates for the third quarter of 2018 will remain unchanged. The underpayment and overpayment rates for Virginia taxes are 2% higher than the corresponding federal rates. Federal rates for the third quarter of 2018 will remain unchanged at 5% for tax underpayments and 5% for tax overpayments by taxpayers other than corporations. Accordingly, the Virginia rates for the third quarter of 2018 will be 7% for tax underpayments (assessments) and 7% for tax overpayments (refunds).

    Details about these interest rates can be found in Tax Bulletin 18-4 and in the Laws, Rules, and Decisions section of our website.

    View the Tax Bulletin

    If you have additional questions, go to www.tax.virginia.gov, or contact us at 804.367.8031 for individual income tax questions and 804.367.8037 for business tax questions.
  • 14 May 2018 10:35 AM | Anonymous

    At Virginia Tax we are always looking for ways to learn from our partners. We value your input and would like to invite you to participate in a survey about your experience with the Virginia e-File program.

    Your responses will be used to help us update and improve our systems, allowing us to provide you with the best possible experience on our platform.

    The survey should take no more than 5-7 minutes to complete.

    Start the survey

    Please submit your feedback by June 11, 2018.
  • 14 May 2018 8:38 AM | Anonymous

    On May 10, 2018, the City of Williamsburg repealed local Ordinances 17-09, 17-10, and 17-16. Accordingly, effective July 1, 2018, there will be an additional one percent regional sales and use tax levied in the City of Williamsburg and the Counties of James City and York (the “Historic Triangle”). 

    This additional tax is authorized by Senate Bill 942 (2018 Acts of Assembly, Chapter 850). The total rate of the Retail Sales and Use Tax in these localities will increase to 7.0 percent, consisting of the 4.3 percent state tax, the 0.7 percent Hampton Roads regional tax, the new 1.0 percent Historic Triangle regional tax, and the 1.0 percent local option tax. The rate of tax on food purchased for home consumption is unaffected by the law change and will remain at the current 2.5 percent (1.5 percent state and 1 percent local) rate. 

    Details about this change can be found in Tax Bulletin 18-3.

    View the Tax Bulletin

    If you have additional questions, go to www.tax.virginia.gov, or contact us at 804.367.8031 for individual income tax questions.
  • 20 Mar 2018 11:31 AM | Anonymous

    Following the publication of Tax Bulletin 18-1 on February 26, we developed a medical expense deduction worksheet as an insert for the 760 instruction booklets.

    We also posted the worksheet on our website and distributed it to tax software developers as a computational guide to supplement the information provided in TB 18-1.

    We recently discovered that the worksheet did not adequately address situations where a taxpayer must add back the full amount of the federal deduction. If a taxpayer’s medical expenses do not exceed 10% of federal adjusted gross income, the Virginia addition is equal to the full amount of the federal deduction. We have clarified this issue on the worksheet by specifying that, in such cases, the amount on Line 6 should be entered as 0. This will allow taxpayers to correctly compute the Virginia addition.

    Updated copies of both the worksheet and the instructions are now available on our website.

    We are also communicating these changes to tax software vendors.

    Should you have any questions, please contact Customer Services at 804.367.8031.

  • 26 Feb 2018 3:30 PM | Anonymous

    Under emergency legislation enacted by the 2018 General Assembly on February 22 and February 23, 2018, Virginia's fixed-date of conformity to the terms of the Internal Revenue Code will advance from December 31, 2016, to February 9, 2018.

    This legislation is effective for the taxable year 2017 and allows Virginia to conform to the Disaster Tax Relief and Airport and Airway Extension Act of 2017.

    This legislation also conforms to most of the provisions of the Tax Cuts and Jobs Act and the Bipartisan Budget Act of 2018 that are effective for Taxable Year 2017. However, this legislation does not conform to the provision of the Tax Cuts and Jobs Act that temporarily increases the medical expenses deduction for Taxable Years 2017 and 2018. In addition, this legislation deconforms from most of the provisions of the Tax Cuts and Jobs Act and the Bipartisan Budget Act of 2018 that are effective for Taxable Year 2018 and thereafter..

    Tax Bulletin 18-1 details the conformity adjustments that may be necessary and provides more information on how the changes affect 2017 Virginia income tax returns.

    View the Tax Bulletin

    Additionally, Virginia will continue to deconform from:

    • Federal income tax deductions for bonus depreciation allowed for certain assets under Internal Revenue Code (“IRC”) §§: 168(k), 168(l), 168(m), 1400L, and 1400N;
    • The five-year carryback of federal net operating loss deductions generated in Taxable Year 2008 or 2009;
    • Federal income tax deductions for applicable high yield discount obligations under IRC § 163(e)(5)(F); and
    • Federal income tax exclusions related to cancellation of debt income realized in connection with a reacquisition of business debt at a discount after December 31, 2008, and before January 1, 2011.
    If you have additional questions, please visit our website at www.tax.virginia.gov, or contact us at 804.367.8031 for individual income tax questions and 804.367.8037 for business tax questions.
  • 21 Sep 2017 3:22 PM | Anonymous

    Virginia Tax Commissioner Craig M. Burns has announced that Virginia will provide extensions and penalty waivers to individuals and businesses in Florida and Georgia who are unable to meet their filing and payment obligations because of Hurricane Irma.

    Outlined in Tax Bulletin 17-12, income tax returns and estimated payments with an original or extended due date between the first day of the disaster* and January 31, 2018 will be granted a waiver of late filing and late payment penalties if the returns and payments are filed on or before March 2, 2018.

    * September 4, 2017 in Florida and September 7, 2017 in Georgia


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