Refunds
Why did I get a paper check when I requested a direct deposit?
There are multiple reasons why taxpayers might receive a paper check rather than a direct deposit. The most common reasons include:
- Reduced Refund Due to a Claim From Other State Agencies, Localities, or the IRS
- Your income tax refund has been held against an outstanding debt(s) you owe to another agency, resulting in the issuance of a check for the remaining overpayment. Virginia Tax cannot assist you with questions related to this debt. You must call the agency(s) listed on your refund check stub if you believe your refund was reduced in error or have any questions related to this debt.
- Reduced Refund Due to an Outstanding Tax Liability with Virginia Tax
- A portion of your tax refund has been applied to outstanding tax assessments, resulting in the issuance of a check for the remaining overpayment. If you believe your refund was reduced in error or have questions, contact us at 804.367.8031.
- Problems with your direct deposit
- The most common reasons a direct deposit does not go through are due to incorrect or miskeyed bank routing or account numbers, or the bank account provided was closed. We also can't issue refunds to international bank accounts, so if you provided an international routing number, we'd need to mail a check.
If I have a bill outstanding on my account, can I still receive my current year's refund?
If you owe a debt to Virginia Tax or to any other state agency, local government, the Virginia court system, or the IRS, your refund can be held to pay the debt.
Do I need to report this year's Virginia income tax refund as income on my federal return for next year?
If you reported itemized deductions on your federal return this year, you may need to report your Virginia income tax refund as income on next year's federal return. This would apply if you claimed a deduction for state and local income taxes, and the deduction amount included taxes paid before considering your state overpayment. For further information and examples, refer to the FAQs for Form 1099G/1099INT.
Exemptions, Deductions, Subtractions, Credits
I claim my children as dependents on my income tax return, but they also file their own returns. Can they still claim personal exemptions for themselves on their returns? Can they claim their own standard deductions?
Generally, you may claim the same exemptions on your Virginia income tax return that you do on your federal return. The same exemption may not be claimed on two separate Virginia income tax returns.
Your children's standard deductions may be subject to a limitation based on their earned income. For details, review the standard deduction information in the instructions for Form 760.
If I reported itemized deductions on my federal return, do I also have to itemize the deductions on my Virginia return? What if the standard deduction would be a better choice on the Virginia return?
If you claim itemized deductions on your federal income tax return, you must also itemize your deductions on your Virginia return. This requirement applies even if using the standard deduction would result in a greater tax benefit on your Virginia return. You can generally claim the same deductions for Virginia purposes that you claimed on your federal Schedule A, except for the deduction for state and local income taxes. For details, refer to the information under Deductions.
How do I compute the Child and Dependent Care Deduction?
Your Virginia Child and Dependent Care expense deduction is the amount of expenses on which your federal credit was based. This is the amount on federal Form 2441 or Form 1040A, Schedule 2 that is multiplied by a decimal to arrive at the federal credit. Do not claim the federal credit amount as your Virginia deduction. Beginning with taxable year 2003, you are generally limited to a maximum deduction of $3,000 for one dependent, or $6,000 for two or more dependents, or the earned income of the spouse having the lowest income, whichever is less. For more information, refer to our Deductions page.
What tax credits are available on the Virginia income tax return?
Virginia law offers a number of income tax credits for individual filers. Among the most frequently claimed credits are the credit for taxes paid to another state and the credit for low-income individuals. All credits have specific eligibility requirements, and some require pre-approval or additional certification. Certain tax credits are not refundable. Read more about Virginia income tax credits.
What is the out-of-state tax credit?
The out-of-state tax credit, or credit for taxes paid to another state, applies only to income taxes paid to another state, and may not be claimed for income taxes paid to Arizona, California, Oregon, or the District of Columbia. Read more about credit for tax paid to another state.
Payments
Should I make estimated tax payments?
Virginia law requires that individuals pay at least 90% of their income tax in timely installments throughout the year by having income tax withheld or making quarterly estimated tax payments. As a general rule, individuals whose estimated tax liability exceeds their Virginia withholding and other tax credits by more than $150 are required to file Form 760ES, Estimated Individual Income Tax Payment Voucher, unless they meet one of the exceptions for making the payments. For more information regarding estimated tax payment requirements, please visit our Individual Estimated Tax Payments page. If you filed a Virginia income tax return for any of the last three taxable years, you may file and pay your current year's estimated tax payments online at VATAX Online Services for Individuals or with our free eForms.
Tax Due Returns
If you are required to file a Virginia individual tax return and have a tax due liability, payments must be received on or before May 1. If you are filing an extension with Virginia, 90% of your tax liability must be paid by the filing deadline of May 1 to avoid an extension penalty. You may visit our Penalties and Interest page to review the calculations.
For your convenience we offer multiple options to submit your payment. Please visit our Payment Options page to learn more.
You may set up an official payment plan once a bill is issued. You may contact our Collections Department at 804.367.8045 or call our automated phone line at 804.440.5100. These options are only available once you receive a bill which will include penalty and interest. You may submit partial payments prior to the bill by using our web payment option through VATAX Online Services, mailing a payment using Form 760PMT voucher to P.O. Box 1478, Richmond, VA 23218-1478 or by submitting a credit card payment.
How are late filing and late payment penalties computed?
The late filing penalty is assessed on the tax due at a rate of six percent per month, from the due date through the date of payment. The maximum penalty is 30 percent of the tax due. The penalty for late payment is assessed at the same rates, but does not apply to any month for which a late filing penalty has already been assessed. The maximum amount for combined late filing and late payment penalties is 30 percent of the tax due with the return.
Can I pay my taxes by credit card?
Yes. Virginia Tax has partnered with Paymentus, a third party credit card vendor, to allow customers to make credit card payments for their income taxes. Pay by phone at 1.833.339.1307 (1.833.339.1307), or pay online on their website. A service fee is added to each payment you make with your card. Paymentus accepts Visa, MasterCard, Discover, and American Express.
I am liable for estimated taxes in the fourth quarter only. Do I file the quarterly form (760ES) or is there some other form for a one time payment?
File form 760ES for the fourth quarter even though this is a one time payment. If you filed a Virginia income tax return for any of the last 7 taxable years, you can file and pay your current year estimated tax payments online through your Individual Account.