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Latest Updates
- Walk-In Service to Become Seasonal, Effective July 1, 2013
- 2013 Land Preservation Tax Credit Cap Announced - Updated
- 2013-2014 Cap Set for Qualified Equity Debt
- Hurricane Preparedness Sales Tax Holiday Starts May 25!
- Advancement of Virginia's Fixed-Date Federal Conformity
- Penalty Relief for Farmers, Fishermen and Merchant Seamen
- New for 2012 Returns: The Virginia Tax Refund Debit Card
- Income Tax Changes for 2012
- Free Fillable Forms
- Advancement of Virginia's Fixed-Date Federal Conformity - Updated 2/9/12
Tax Credits
- 2013 Land Preservation Tax Credit Cap Announced - Updated
- 2013-2014 Cap Set for Qualified Equity Credit
- What's New for Tax Credits
- Telework Expenses Tax Credit
- 2013 Land Preservation Cap Announced
Filing and Payment
- Penalty Relief for Farmers, Fishermen and Merchant Seamen
- Free Fillable Forms
- Expanded Definition of "Postmark" (filing date)
General Information
- New for 2012 Returns: The Virginia Tax Refund Debit Card
- 2012 Legislative Summary
- Advancement of Virginia's Fixed-Date Federal Conformity - Updated 2/15/13
- Income Tax Changes for 2012
- 2012 Forms 1099G/1099INT
- Guidelines Under Development
- Tax Relief for Spouses of Military Personnel
- Sales Tax Holidays
Walk-In Service to Become Seasonal, Effective July 1, 2013
Beginning July 1, 2013, the Department of Taxation’s Customer Service Walk-In area at 1957 Westmoreland St., Richmond, will be open ONLY during the busiest filing months of the year – January through May. This means the Customer Service Walk-In will close July 1 this year, when the change goes into effect, and then begin closing on June 1 in 2014 and future years. The Department is realigning its customer service resources due to approved budget reductions and the increase in electronic filing by taxpayers. The Cashiers Office at the Westmoreland Street location is not affected by the change to the Customer Walk-In and payments can still be made there year around.
Penalty Relief for Farmers, Fishermen and Merchant Seamen
In response to recent action by the IRS, The Virginia Department of Taxation is providing relief from the estimated tax underpayment penalty for farmers, fishermen, and merchant seamen who are unable to file and pay their 2012 income taxes by the March 1 deadline. In order to receive an automatic waiver of the estimated tax underpayment penalty, farmers, fishermen and merchant seamen must file their returns and pay the entire tax due by April 15, 2013. For more information, see Tax Bulletin 13-2 (P.D. 13-12).
New for 2012 Returns: The Virginia Tax Refund Debit Card
As required by the 2012-2014 Appropriations Act, there will be two refund options offered on individual income tax returns for taxable year 2012. Beginning with the 2012 returns filed in 2013, refunds will be issued by direct deposit to a checking or savings account or on a prepaid debit card, the Virginia Tax Refund Debit Card. The debit card replaces paper refund checks for those filers who do not choose the direct deposit option for their refunds. Filers must specify which option they prefer on their income tax returns. There is no option for requesting a paper check. Learn more on our Virginia Tax Refund Debit Card page.
Qualified Equity and Subordinated Debt Investments Tax Credit: Cap for 2013 and 2014
The General Assembly has set the annual cap for the Qualified Equity and Subordinated Debt Investments Tax Credit at $4.5 million for taxable year 2013, and $5 million for taxable year 2014. For complete details, see Tax Bulletin 13-7.
2013 Cap for Land Preservation Credit Announced
Previously, it was announced that the indexed tax credit cap for the Land Preservation Tax Credit for calendar year 2013 was $113,909,000. However, legislation passed by the 2013 General Assembly (House Bill 1398) removed the credit's adjustment for inflation. Therefore, the cap for calendar year 2013 and years to come has been reduced to $100 million. Please see Tax Bulletin 13-6 for more information.
Free Fillable Forms
The Free Fillable Forms e-File Program, which provides an online version of Form 760 and related schedules, allows you to complete your return online by entering your state tax information as if you were filling out a paper return. Once the form is completed, you can e-File it at no charge. The Free Fillable Forms option is available only to Virginia residents, but there are no income or age restrictions for eligible filers. If you usually file on paper forms, the Free Fillable Forms e-File Program may be a good choice for you. Learn more!
Income Tax Changes for 2012
Filing Threshold: The filing threshold amounts for taxable years 2012 and beyond have been increased. The new threshold for single individuals has increased from $11,650 to $11,950. The filing threshold for married couples filing jointly has increased from $23,300 to $23,900. The threshold for married couples who file separate returns has increased from $11,650 to $11,950.
Telework Expenses Tax Credit: The Telework Expenses Tax Credit is a new individual and corporate income tax credit for employers who incur eligible telework expenses pursuant to a telework agreement or conduct telework assessments. This credit is equal to the amount of expenses incurred during the calendar year that ends during the taxable year, not to exceed $50,000 each year. Taxpayers may claim this credit for taxable years beginning on or after January 1, 2012. To qualify for a credit, the employer must enter into a signed telework agreement with the teleworking employee on or after July 1, 2012, but before January 1, 2017. This telework agreement must be in accordance with policies set by the Department of Rail and Public Transportation (DRPT) available on the Telework!VA website.
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Submit Form TEL-1 to the Department of Taxation between September 1 and October 31 of the year preceding the taxable year for which the tax credit is earned to reserve a portion of the credit. Confirm the amount of eligible expenses actually incurred by filing Form TEL-2. by April 1 of the year following the calendar year when the eligible expenses were incurred. Once Form TEL-2 is approved, the Department will send a certification letter for the amount of Telework Expenses Tax Credit that can be claimed on your Virginia return. For more on this new credit and modifications to existing credits, see What’s New for Tax Credits.
Telework Expenses Addition: Individuals who claim the Virginia Telework Expenses Tax Credit are not allowed to exclude those expenses from Virginia Income. To the extent excluded from federal adjusted gross income, any expenses incurred by a taxpayer in connection with the Telework Expenses Tax Credit must be added to the Virginia return.
Historic Rehabilitation Tax Credit Subtraction: To the extent included in federal adjusted gross income, any amount of gain or income recognized by a taxpayer in connection with the Historic Rehabilitation Tax Credit is allowed as a subtraction on the Virginia return.
Telework Expenses Tax Credit
The Telework Expenses Tax Credit is a new individual and corporate income tax credit for employers who incur eligible telework expenses pursuant to a telework agreement or conduct telework assessments. This credit is equal to the amount of expenses incurred during the calendar year that ends during the taxable year, not to exceed $50,000 each year. Taxpayers may claim this credit for taxable years beginning on or after January 1, 2012. To qualify for a credit, the employer must enter into a signed telework agreement with the teleworking employee on or after July 1, 2012, but before January 1, 2017. This telework agreement must be in accordance with policies set by the Department of Rail and Public Transportation (DRPT) available on the Telework!VA website.
Submit Form TEL-1 to the Department of Taxation between September 1 and October 31 of the year preceding the taxable year for which the tax credit is earned to reserve a portion of the credit. Confirm the amount of eligible expenses actually incurred by filing Form TEL-2. by April 1 of the year following the calendar year when the eligible expenses were incurred. Once Form TEL-2 is approved, the Department will send a certification letter for the amount of Telework Expenses Tax Credit that can be claimed on your Virginia return.
Tax Relief for Spouses of Military Personnel
Detailed Information released in Tax Bulletin 10-1: Federal legislation signed into law on November 11, 2009, the Military Spouses Residency Relief Act, affects Virginia income tax filing requirements for certain spouses of military personnel. Effective for taxable year 2009, spouses of military service members do not automatically become Virginia residents for purposes of income and personal property taxation in cases where the individual is present in Virginia solely to be with a spouse who is a member of the military serving in Virginia in compliance with military orders. This means that affected individuals may be eligible for refunds of income tax withheld by their employers in 2009. For more information, see Tax Bulletin 09-10, the revised Form 763-S and Form VA-4, and Frequently Asked Questions (updated 5/13/10). Check back for updates, or sign up for e-Alerts to receive e-mail notifications of new information.
Advancement of Virginia's Fixed-Date Conformity to the Internal Revenue Code
Under emergency legislation (House Bill 2150; Chapter 4 of the 2013 Acts of Assembly) passed by the 2013 General Assembly and signed by Governor McDonnell on February 15, 2013, Virginia's fixed-date of conformity to the terms of the Internal Revenue Code will advance from December 31, 2011, to January 2, 2013. The legislation extends conformity to the temporary enhancements to the federal earned income tax credit (“EITC”) to Taxable Year 2012, and allows Virginia to conform to the federal American Taxpayer Relief Act of 2012 for Taxable Year 2012. Tax Bulletin 13-3 provides instructions on how to reconcile this legislation with 2012 Virginia income tax returns.
Last Updated 5/28/2013 9:0