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Spouse Tax Adjustment

Please try the Spouse Tax Adjustment Calculator below.

You must be filing a joint return and both you and your spouse must have income. Have your federal tax return and, if applicable, a completed Virginia Schedule ADJ ready.

What is the adjustment and who may be eligible?

Married couples who file a joint Form 760 may be eligible for an adjustment of up to $259 against their joint income tax liability if each spouse received income during the taxable year. With this adjustment, two-income couples who file a joint return owe no more tax than the combined tax that would be due if separate returns were filed. Joint taxable income must be over $3,000 and both parties must have Virginia Adjusted Gross Income to benefit from this adjustment.

FOR EXAMPLE: One couple's combined Virginia income is $42,000. The Virginia tax is $2158. Suppose one spouse's income is $30,000 and the other spouse's income is $12,000. Using the Spouse Tax Adjustment to report their separate incomes, their total tax computes to $1937. Simply by using this Spouse Tax Adjustment worksheet they would benefit a savings of $221 in taxes! 

How is the adjustment calculated?

Virginia's income tax is imposed at graduated rates, starting at 2% and capping at 5.75%. The highest rate applies to income over $17,000. When a married couple chooses to file a joint return (Filing Status 2), they report their income together in the same column on the return. The first $17,000 of their total taxable income is then taxed at the lower rates, with the remainder being subject to tax at the rate of 5.75%. If a couple elects to use the Spouse Tax Adjustment, they calculate their income tax separately using the Spouse Tax Adjustment worksheet. As a result, the first $17,000 of each of their incomes will be taxed at the lower rates. Consequently, using the Spouse Tax Adjustment can result in a tax savings of up to $259.

Spouse Tax Adjustment Calculator:


  Yourself Spouse
1. Wages, salaries, tips, etc.
(Federal Form 1040 line 7; 1040A line 7; 1040EZ line 1)
2. Taxable interest and dividend income
(Federal Form 1040 line 8a + 9a; 1040A line 8a + 9a; 1040EZ line 2)
3. Taxable refunds, credits or offsets of state & local income taxes
(Federal Form 1040 line 10)
4. Business income
(Federal Form 1040 line 12)
5. Capital gains/losses and other gains/losses
(Federal Form 1040 line 13 + 14; 1040A line 10)
6. Taxable pensions, annuities and IRA distributions
(Federal Form 1040 line 15b + 16b; 1040A line 11b + 12b)
7. Rental real estate, royalties, partnerships, S Corporations, trusts, etc.
(Federal Form 1040 line 17)
8. Alimony received, Farm income (or loss), Unemployment Compensation, taxable Social Security and Other income
(Federal Form 1040 lines 11 + 18 + 19 + 20b + 21; 1040A lines 13 +14b; 1040EZ line 3)
9. Adjustments to gross income
(Federal Form 1040 line 36; 1040A line 20)
10. Total additions to FAGI
(VA Form 760, line 2)
11. Age Deduction
(VA Form 760, line 4)
12. Social Security Act and equivalent Tier 1 Railroad Retirement Act Benefits
(VA Form 760, line 5)
13. State income tax refund or overpayment credit reported as income on your federal return
(VA Form 760, line 6)
14. Other Subtractions
(VA Form 760, line 7)
17. Enter taxable income from VA Form 760


  Amount of Tax
$ $ $


Last Updated 1/22/2015 10:42


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