If filing a joint return on Form 760, your client may qualify for a reduction in net tax of as much as $259.00 by taking advantage of the Spouse Tax Adjustment (STA).  Taxpayers must use Filing Status 2, and each spouse must have taxable income and their combined income must be at least $3,000.  

As you know, married taxpayers filing separately automatically receive the benefit of a lower tax rate on each of their individual returns but when filing jointly and combining their income they must take the STA to receive the benefit of a lower tax rate.

The STA is calculated based on each spouse's portion of the joint Virginia Adjusted Gross Income (VAGI).  To claim the STA for your clients, complete Form 760, Lines 16a and 16b using the spouses separate VAGI amounts.  Verify that the total of the separate VAGIs equal the total on Form 760, Line 9.  An STA calculator is located on the Department's website.