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Important Update on Refund Debit Cards

Effective January 1, 2016, the Commonwealth will no longer issue tax refunds on pre-paid debit cards.  Going forward, taxpayers may elect to have their tax refunds issued as direct deposits into their bank accounts, or by check.  The Department strongly encourages the use of direct deposit as the safest, fastest, and most cost efficient method for receiving a tax refund.

Requesting Copies of Tax Returns - New Procedure 7/1/15

Effective July 1, 2015, the Department of Taxation will charge $5.00 for each copy of a previously filed tax return.  See our Copies of Returns page for details on the new procedure, including the form for submitting your request.



Income Tax Changes for 2015

Refund Options: Effective January 1, 2016, the refund debit card option will no longer be available. Individual refunds will be issued only by direct deposit or check to taxpayers’ checking or savings accounts. Direct deposit is the fastest way to get your refund. To have your refund deposited directly into your bank account, fill in the banking information on your return. Otherwise, your refund will be issued as a check. 

Subtraction for Discharge of Student Loans: Effective for taxable years beginning on and after January 1, 2015, an individual income tax subtraction is allowed for any income attributable to the discharge of a student loan solely by reason of the student’s death. This subtraction is not applicable to the discharge of private loans, nor would it apply to the discharge of loans that are already excluded from federal income taxation. 

Subtraction for Long-Term Capital Gain: The sunset date for making investments in certain high technology businesses that qualify for this subtraction is extended from June 30, 2015 to June 30, 2020. 

Subtraction for the Gain on the Sale of Land for Open-Space Use: This subtraction is not available for taxable years beginning on or after January 1, 2015. 

Disaster Relief Assistance by Out-of-State Businesses and Individuals: Legislation passed by the 2015 General Assembly provides a tax exemption for certain out-of-state businesses and employees providing disaster relief assistance in Virginia. The exemption provisions apply to certain state and local taxes and fees as well as to certain registration and licensing requirements. The provisions do not apply to any transaction taxes and fees, including but not limited to, motor fuels taxes, sales and use taxes, transient occupancy taxes, and car rental taxes and fees based on purchases, leases, or consumption in Virginia. 

Tax Credits: Modifications were made to some tax credits for 2015. See What’s New for Tax Credits.


Advancement of Virginia's Conformity to Federal Internal Revenue Code

Under emergency legislation (House Bill 402; Chapter 2 of the 2016 Acts of Assembly) passed by the 2016 General Assembly and signed by Governor McAuliffe on February 5, 2016, Virginia's fixed-date of conformity to the terms of the Internal Revenue Code (“IRC”) will advance from December 31, 2014 to December 31, 2015.  Tax Bulletin 16-1 provides taxpayers with directions on how to reconcile this legislation and Virginia's December 31, 2015 date of conformity to the Internal Revenue Code with their 2015 Virginia income tax returns.



Last Updated 09/23/2016 10:22