Low Income Individuals Credit

You may qualify to claim the Credit for Low Income Individuals (CLI) if your total family Virginia adjusted gross income is below federal poverty guidelines. Family Virginia adjusted gross income includes the total Virginia adjusted gross income for you, your spouse, and your dependents, even if they do not file their own Virginia returns. If you and your spouse file separate returns, the family income includes income from your return, your spouse's return and any income for any dependents claimed on either return. Only one spouse may claim the CLI. For more information on computing Virginia adjusted gross income, refer to Form 760.

The maximum credit you may claim is $300 for each personal and dependent exemption claimed on your Virginia return. Unlike the Federal Earned Income Credit, this credit is not refundable. The amount of CLI claimed may not exceed your tax liability. Excess credit amounts may not be carried forward to future years.

You may not claim this credit if you, your spouse, or any dependent listed on your return claimed one or more of the following exemptions, deductions or subtractions:

  • subtraction for wages or salaries received by members of the Virginia National Guard
  • subtraction for up to $15,000 of military basic pay for military service personnel on extended active duty
  • subtraction for up to $15,000 of salary for a federal or state employee whose annual salary is $15,000 or less
  • additional personal exemption for blind or aged taxpayers (NOTE: If you qualify for both the CLI and an additional exemption for blindness, it may be to your advantage to claim the CLI, rather than the additional exemption).
  • age deduction

In addition, you cannot claim this credit if you were claimed as a dependent on another taxpayer's return.

Claiming the credit is a 2-step process. First, determine if you qualify for the credit. If you do, compute your allowable credit. Use the following table to see if you qualify for the CLI on your 2021 Virginia income tax return:

If the number of eligible exemptions is:  Your family Virginia adjusted income must be less than:
1 $12,880
2 $17,420
3 $21,960
4 $26,500
5 $31,040
6 $35,580
7 $40,120
8 $44,660

For each additional exemption over 8, add $4,540.

Eligible exemptions include personal exemptions only. You may not claim the CLI if you also claim additional exemptions for blindness or age.

If you qualify for the credit, multiply the total number of personal exemptions claimed on your return by $300. The credit cannot be more than your total tax as shown on your income tax return, Form 760. Use Schedule ADJ to report the credit.

Reference: Virginia Code 58.1 - 339.8.