Virginia Form 760 Instructions
Virginia's Fixed Date Conformity with the Internal Revenue Code: Virginia's date of conformity with the federal enhanced Earned Income Tax Credit ("EITC") was extended to taxable years ending before January 1, 2018. Virginia will continue to allow taxpayers to claim either the Tax Credit for Low-Income Individuals or a credit equal to 20% of the Federal EITC that was claimed for the taxable year. Low-Income taxpayers may also continue to claim the portion of the Virginia Low-Income Tax Credit that is based on the federal EITC without making complex adjustments on their Virginia income tax returns.
During the 2014 Session, the General Assembly did not advance Virginia's date of conformity with the Internal Revenue Code, and the date of conformity remains January 2, 2013. Virginia will continue to disallow federal income tax deductions for bonus depreciation allowed for certain assets under Internal Revenue Code ("IRC") §§ 168(k), 168(l), 168(m), 1400L and 1400N; the five-year carryback of federal net operating loss deductions generated in Taxable Year 2008 or 2009; and federal income tax deductions for applicable high yield discount obligations under IRC § 163(e)(5)(F).
At the time these instructions went to print, the only required adjustments for "fixed date conformity" were those mentioned above. However, if federal legislation is enacted that results in changes to the IRC for the 2014 taxable year, taxpayers will be required to make adjustments to their Virginia returns that are not described in the instruction booklet. Information about any such adjustments will be posted on the Department's website at www.tax.virginia.gov.
Virginia Income Tax Treatment of Same-Sex Marriage: Same-sex couples that are married under the law of any state are now recognized as married couples for Virginia income tax purposes. Virginia income tax guidance for same-sex married couples is available on the Department's website at www.tax.virginia.gov. See Virginia Tax Bulletin 14-7 (Public Document 14-174, 10/7/14).
Virginia College Savings PlanSM (Virginia529SM) Contributions: Beginning with the 2014 taxable year, individuals may contribute all or part of their income tax refunds to one or more Virginia529 accounts by completing Schedule VAC. Virginia529 is a 529 college savings plan that offers flexible, affordable, tax-advantaged savings for qualified higher education expenses through its four programs: Virginia529 prePAIDSM, Virginia529 inVESTSM, CollegeAmerica®, and CollegeWealth®. Nearly $53 billion in assets under management and 2.3 million accounts as of June 30, 2014 make Virginia529 the largest 529 plan in the country. For information on establishing accounts, visit Virginia529.com. See the instructions for Schedule VAC on Page 26 of this book for details on this contribution program.
First-Time Home Buyer Savings Accounts: Individuals may designate an account with a financial institution as a first-time home buyer savings account. Distributions from such accounts must be used solely for paying or reimbursing the down payment and allowable closing costs for the purchase of a single-family residence in Virginia. An individual may subtract any income attributable to such account that was taxed as interest, capital gains, or other income for federal income tax purposes, to the extent it was included in such individual's federal adjusted gross income. However, if funds are withdrawn from the account for purposes other than to pay eligible costs, any subtractions previously taken would be subject to recapture.
Education Improvement Scholarships Tax Credits: For taxable years beginning on or after January 1, 2014, an income tax credit may be claimed for monetary or marketable securities donations made to scholarship foundations included on an approved list published by the Virginia Department of Education. The credit is equal to 65 percent of the monetary or marketable securities donation made to the scholarship foundation. Tax credits will be awarded to taxpayers on a first-come, first- served basis in accordance with procedures established by the Virginia Department of Education. For information on how to qualify, contact the Department of Education at 804-225-3375.
Direct Deposit: Due to electronic banking rules, the Department will not allow direct deposits to or through foreign financial institutions. Attempting to use direct deposit to transfer funds electronically to a financial institution outside the territorial jurisdiction of the United States will significantly delay your refund. Visit www.tax.virginia.gov for details.
Extension for Filing Income Tax Returns: All taxpayers are granted an automatic 6-month extension of time to file their income tax returns. No application for extension is required; however, any tentative tax due must be paid with an extension voucher, Form 760IP, by the original due date for filing the return.
Consumer's Use Tax: Did you purchase merchandise by Internet, telephone, or mail, or did you purchase any merchandise outside Virginia and pay no sales tax? If so, you may be required to pay Consumer's Use Tax. Be sure to report the applicable tax on Form 760, Line 35. See the instructions for Form 760, Line 35 or visit www.tax.virginia.gov for more information.
Civil and Criminal Penalties: The civil penalty for filing a false or fraudulent return or for failing or refusing to file any return with intent to evade the tax, is an additional penalty of 100% of the correct tax.
Any individual who willfully fails or refuses to file a return, at the time or times required by law, shall be guilty of a Class 1 misdemeanor. In addition, an individual who makes any false statements on a return, with intent to defraud the Commonwealth, shall be guilty of a Class 6 felony.
Filing Options, Forms and Assistance
- e-File your return online: Electronic filing is used to prepare and file your federal and state tax returns over the Internet. There are three e-File options to choose from - Virginia Free File, Paid e-File and Virginia Free File fillable forms. Please visit the Department at www.tax.virginia.gov to find out more about these programs.
If you file online do not send the Department a paper copy of your return.
- File your return on paper:
- Use commercial tax preparation software and print a copy of your state tax return
- Download forms at www.tax.virginia.gov
- Order forms online through the Department's website or call (804) 440-2541
If you fill out your tax return by hand, you can avoid processing delays by printing your information so it can be easily read. Please use black ink and not pencil.
- For assistance, visit the Department's website at www.tax.virginia.gov
- Call Customer Service at (804) 367-8031. For TTY users dial 7-1-1
- Mail requests for information to:
Virginia Department of Taxation
P.O. Box 1115
Richmond, Virginia 23218-1115
Please do not mail your return to this address.
- Call or visit your Local Commissioner of the Revenue, Director of Finance, or Director of Tax Administration for information or return preparation assistance. Check Page 45 for a list of localities and contact information.
Do You Need to File a Virginia Income Tax Return?
Every Virginia resident whose Virginia adjusted gross income is at or above the minimum threshold must file.
Complete Form 760, Lines 1 through 9, to determine your Virginia adjusted gross income (VAGI). If the amount on Line 9 is less than the amount shown below for your filing status, your Virginia income tax is $0.00 and you are entitled to a refund of any withholding or estimated tax paid. You must file a return to receive a refund. To claim a refund in these cases, Complete Lines 10 through 16 and enter "0" as your tax on Lines 17 and 19. Then complete Lines 20 through 38. You must file if you are:
Single and your VAGI is $11,950 or more
Married filing jointly and combined VAGI is $23,900 or more
Married filing separately and your VAGI is $11,950 or more
When to File Your Return
Filing by mail or commercial delivery service - If you are mailing several documents, please consider using a flat envelope to ensure proper handling and faster processing. When filing by mail, the envelope must be postmarked by the due date. Put the correct postage on your envelope. If your return is sent back to you because of insufficient postage, you are liable for penalties and interest if the postmark on the remailed return is after the due date. Tax returns or payment of taxes remitted by a commercial delivery service will be considered timely filed if they are received in an envelope or sealed container bearing a confirmation of shipment on or before midnight of the day the return or payment is due.
Calendar year filer - If your taxable year is January 1, 2014 - December 31, 2014, your individual income tax return must be postmarked no later than May 1, 2015, to avoid penalties and interest.
Fiscal year filer - If your taxable year is any consecutive 12-month period other than January - December, your individual income tax return must be postmarked by the 15th day of the 4th month following the end of your fiscal year. When filing, you should write "Fiscal Year Filer" across the top of Page 1 of Form 760 and attach a statement indicating the beginning and ending months of your fiscal year.
Outside U.S. - If you are living or traveling outside the United States or Puerto Rico (including persons in the military or naval service on duty outside the United States and Puerto Rico), you must file your return by July 1, 2015. Fill in the overseas on due date oval on Page 1 of Form 760.
Weekends and holidays - If the due date falls on a Saturday, Sunday or legal holiday, your return must be postmarked by the next business day.
Extension provisions - Virginia law provides an automatic 6-month filing extension for income tax returns. No application for extension is required. The extension is for filing the return, not for payment of the tax; therefore, you must pay at least 90% of your tax by the due date, May 1 for calendar year filers, to avoid penalty. To make a payment of tentative tax, use Form 760IP.
Foreign income exclusion - If you qualify for the federal foreign income exclusion and have requested an extension of time for filing your federal return, you may apply for an extension of time to file your state return. You will be granted an extension for 30 days after the date you expect to qualify for the federal exclusion. You must apply for an extension of time to file your state return by letter on or before the 1st day of the 7th month following the close of your taxable year and attach a copy of the approved federal extension to your return when you file.
Members of the military - Members of the Armed Forces serving in a combat zone receive either the same individual income tax filing and payment extensions as those granted to them by the IRS, plus an additional 15 days, or a 1-year extension, whichever date is later. All extensions also apply to spouses of military personnel. Service families may wish, however, to file their individual income tax returns before the extended deadlines to receive refunds. Service members claiming this extension should write "Combat Zone" across the top of their tax returns and on the envelopes used to mail their returns. Such combat zone personnel should similarly write "Combat Zone" across the top of correspondence, and on the envelope used to mail the correspondence, when responding to notices issued by the Department. See Tax Bulletin 05-5, available in the Laws, Rules, and Decisions Section of the Department's website at www.tax.virginia.gov for more information.
In addition, every member of the armed services deployed outside of the United States is allowed an extension of his or her due date. The extension will expire 90 days following the completion of deployment. Service members who claim this extension should write "Overseas Noncombat" on the top of their tax returns.
Additional information for spouses of military personnel is provided in the Residency Status and Choosing the Right Form to File section later in this booklet.
Where to File
Use e-File to electronically file your federal and state tax returns at the same time. Software programs that provide e-File capability are available online and for purchase in stores. All e-File software will automatically check for completeness, correct errors, generate the applicable schedules and provide the option to transmit the return to the IRS and/or the Department's electronic processing systems. Some vendors will allow taxpayers to file their returns electronically for free based on certain qualifiers.
To file by mail, use the list of mailing addresses beginning on Page 45 and look up the city or county where you live, or file directly with the Department. Local phone numbers are also provided.
For more information about filing by e-File and filing by mail, go to www.tax.virginia.gov.
If your federal return is amended, resulting in changes to your taxable income or any amount affecting the Virginia return, you must file an amended Virginia return within one year. If the IRS provided documentation that acknowledges acceptance of your federal amended return, attach a copy to the Virginia amended return. In addition, if you file an amended return with any other state that affects your Virginia income tax, you must file an amended Virginia return within one year. The Department may issue a refund only if the amended return is filed within:
- 3 years from the due date of the original return, including valid filing extensions;
- 1 year from the final determination of the amended federal return or federal change, whichever is later, provided that the allowable refund is not more than the decrease in Virginia tax attributable to the federal change or correction;
- 1 year from the final determination of the amended return of any other state or change or correction in the income tax of the taxpayer for any other state, provided that the refund does not exceed the amount of the decrease in Virginia tax attributable to such change or correction;
- 2 years from the filing of an amended Virginia return resulting in the payment of additional tax, provided that the current amended return raises issues relating solely to the prior amended return and that the refund does not exceed the amount of the tax payment made as a result of the prior amended return; or
- 2 years from the payment of an assessment, provided the amended return raises issues relating only to the prior assessment and the refund does not exceed the amount of tax paid on the prior assessment.
Complete a new return using the corrected figures, as if it were the original return. Do not make any adjustments to the amended return to show that you received a refund or paid a balance due as the result of the original return. Use the worksheet for amended returns below to determine if you are due a refund or if any additional tax due should be paid with your amended return. If your amended return results in additional tax due, interest must be paid on the tax you owe from the due date of your original return to the date that the amended return is filed or postmarked.
Fill in the oval on the front of Form 760, indicating that this is an amended return. Also, fill in the additional oval on the front of the return if the amended return is the result of a net operating loss (NOL) carryback. General instructions for computing the NOL can be obtained from the Laws, Rules and Decisions Section of the Department's website at www.lrd.tax.virginia. gov. Select the Virginia Tax Administrative Code link, then 23VAC10-110-80 and 23VAC10-110-81 located in Chapter 110, Individual Income Tax. Attach a complete copy of your amended federal return, if applicable.
Worksheet for Amended Returns - If you are filing an amended return, use the worksheet below to determine if you will receive an additional refund or if you need to make an additional payment.
|1. Amount paid with original return, plus additional tax paid after it was filed||______|
|2. Add Line 1 above and Line 28 from Form 760 and enter the total here||______|
|3. Overpayment, if any, as shown on original return or as previously adjusted||______|
|4. Subtract Line 3 from Line 2||______|
|5. If Line 4 above is less than Line 19, Form 760, subtract Line 4 above from Line 19, Form 760. This is the Tax You Owe||______|
|6. Refund. If Line 19, Form 760 is less than Line 4 above, subtract Line 19, Form 760 from Line 4 above. This is the Tax You Overpaid||______|
Residency Status and Choosing the Right Form to File
- There are two types of Virginia residents: domiciliary and actual.
- A domiciliary resident of another state may also be an actual resident of Virginia.
- Virginia residency may be either full-year or part-year.
- A nonresident of Virginia may be required to file a Virginia return.
- To determine which Virginia return you should file, first determine if you were a resident of Virginia at any time during the taxable year.
Step 1: Determine your residency status
You are a domiciliary (legal) resident if your permanent home is in Virginia. Your permanent home is where, whenever you are absent, you intend to return. Every person has one and only one domiciliary residence at a time. Most domiciliary residents actually live in Virginia; however, actual presence in Virginia is not required. If you have established legal domicile in Virginia, you are a domiciliary resident until you establish legal domicile in another state.
- Members of the armed forces who claim Virginia as their home of record are domiciliary residents, even if stationed outside of Virginia.
- A domiciliary resident who accepts employment outside of Virginia, but who does not abandon Virginia as his or her domiciliary residence, even if outside of Virginia for many years, remains a domiciliary resident of Virginia. This includes domiciliary residents who accept employment outside of the United States.
You are an actual resident if:
You maintained an abode in Virginia or were physically present in Virginia for more than 183 total days during the taxable year, even if you are a domiciliary resident of another state or country.
If you are an actual resident of Virginia, you may be required to file as a resident in Virginia and in your domiciliary state. In this situation, you should claim a credit on the return filed in the state of your legal domicile for taxes paid to Virginia.
Students: The rules for determining the residency status of a student are the same as for anyone else.
Military Personnel and Members of the U.S. Congress: If you are a member of the armed forces or of the U.S. Congress who is a domiciliary (legal) resident of another state, you are not subject to taxation as an actual resident of Virginia even if you maintained an abode in Virginia for more than 183 days. However, if you have income from Virginia sources other than your active duty or congressional pay, you may be required to file a Form 763, Nonresident Income Tax Return.
Spouses, Dependents and Congressional Staff Members: The exemption for members of the armed forces and the U.S. Congress does not apply to spouses (see below), dependents or congressional staff members. If you are a spouse or dependent of a member of the armed forces or of the U.S. Congress or you are employed by a member of the U.S. Congress, you must determine your own residency status and filing obligations, even if you filed a joint federal return.
Spouses of Military Personnel: Under the Servicemember Civil Relief Act, as amended by the Military Spouses Residency Relief Act, a spouse of a military servicemember may be exempt from Virginia income tax on wages if (i) the servicemember is present in Virginia in compliance with military orders; (ii) the spouse is present in Virginia solely to be with the servicemember; and (iii) they both maintain the same non-Virginia domicile state. More information is available in Tax Bulletin 09-10 and Tax Bulletin 10-1 available on the website at www.tax.virginia.gov.
Step 2: Determine which income tax return you should file
File Form 760, Resident Return, if:
- You were an actual or domiciliary resident for the entire year; or
- You were an actual or domiciliary resident for a portion of the year, but all of your income for the entire year was from Virginia sources.
File Form 760PY, Part-Year Resident Return, if:
- You moved into Virginia during the taxable year and became either an actual or domiciliary resident; or
- You moved out of Virginia during the taxable year and became a domiciliary resident of another state, provided that you did not move back to Virginia within six months.
Note to Part-Year Residents: If you had Virginia source income during the taxable year while you were a nonresident, you may also be required to file Form 763, Nonresident Return. See Nonresidents, below.
Married Taxpayers: If one spouse is a Virginia resident and the other is a nonresident, you may not file a joint Virginia return unless you both elect to determine your joint Virginia taxable income as if you were both Virginia residents. If the spouses do not make such election, the resident spouse will file either Form 760 or Form 760PY, while the nonresident spouse will file Form 763, if applicable. However, if one spouse is a full-year resident and the other spouse is a part-year resident, you may file a joint return using Form 760PY. See the Form 760PY instructions for additional information.
File Form 763, Nonresident Return, if:
You had income from Virginia sources, other than interest from personal savings accounts, interest or dividends from an individual stock market investment, or pension payments from a Virginia payor.
Income from Virginia sources includes:
- Items of income gain, loss and deductions attributable to: a) The ownership of any interest in real or tangible personal property in Virginia; b) A business trade, profession, or occupation carried on in Virginia; and c) Prizes paid by the Virginia Lottery and gambling winnings from wagers placed or paid at a location in Virginia.
- Income from intangible personal property, including annuities, dividends, interest, royalties and gains from the disposition of intangible personal property employed by an individual in a business, trade, profession or occupation carried on in this state.
If you were a Virginia resident for part of the year and you also received Virginia source income during your period of residence outside Virginia, you must file Form 760PY and Form 763. The Virginia source income reported on Form 763 will be only the Virginia source income you received while a nonresident.
Exceptions for Certain Nonresidents
An exception to the filing requirement for nonresidents applies to certain residents of Kentucky, the District of Columbia, Maryland, Pennsylvania, and West Virginia if their only Virginia source income is from salaries and wages. See below for qualifications. If residents of these states received other income from Virginia sources that is not specifically exempted, it must be reported as Virginia source income on Form 763, the Virginia Nonresident Return.
Kentucky and the District of Columbia: If you were a resident of Kentucky or the District of Columbia who commuted daily to work in Virginia, you are not required to file a Form 763 Nonresident Return, provided that 1) you had no actual place of abode in Virginia at any time during the taxable year, and 2) your only income from Virginia sources was salaries and wages, and 3) your salary and wages were subject to income taxation by Kentucky or the District of Columbia.
Maryland, Pennsylvania and West Virginia: If you were are a resident of Maryland, Pennsylvania or West Virginia and you earned salaries and wages in Virginia, you do not have to file a Form 763, Nonresident Return, provided that 1) your only income from Virginia sources was salaries and wages, and 2) you were present in Virginia for 183 days or less during the taxable year, and 3) your salaries and wages were subject to taxation by Maryland, Pennsylvania, or West Virginia.
Spouses of Military Personnel: Under the Servicemember Civil Relief Act, as amended by the Military Spouses Residency Relief Act, a spouse of a military servicemember may be exempt from Virginia income tax on wages if (i) the servicemember is present in Virginia in compliance with military orders; (ii) the spouse is present in Virginia solely to be with the servicemember; and (iii) they both maintain the same non-Virginia domicile state. More information is available in Tax Bulletin 09-10 and Tax Bulletin 10-1 available on the website at www.tax.virginia.gov.
Tax Withheld in Error by Employer: If Virginia tax was withheld from your income in error, you should file Form 763S to obtain a refund.
If you meet any of the exceptions above and had Virginia withholding, you may need to file Form 763S, Virginia Special Nonresident Claim For Individual Income Tax Withheld, to claim your refund.
Before you begin to prepare your Virginia Form 760, you will need the following:
- Your completed federal income tax return.
- W-2, 1099 and VK-1 forms with Virginia withholding.
- Virginia Schedule ADJ. See next section.
- Schedule OSC and other state income tax returns filed, if you are claiming the credit for tax paid to another state.
- Virginia Schedule CR. See Page 29.
If you are filing an amended return, you will need copies of the records supporting the change to your return, as well as your original return.
Do You Need to Complete Virginia Schedule ADJ?
Complete Virginia Schedule ADJ if you need to report any of the following:
- Additions to Federal Adjusted Gross Income (FAGI)
- Subtractions from FAGI not reported on Form 760
- Deductions from VAGI not reported on Form 760
- Credit for Low-Income Individuals or Virginia Earned Income Credit
- Addition to tax
- Penalties and Interest
Assembling Your Return
If you file your return by paper, enclose the original Virginia Form 760, Schedule ADJ, Schedule VAC, Schedule OSC and Schedule CR. Do not send photocopies of these forms. Photocopies of all other supporting documents are acceptable.
REQUIRED ATTACHMENTS TO FORM 760
- Forms W-2, 1099 & VK-1 showing Virginia withholding
- Schedule ADJ
- Schedule VAC
- Schedule OSC
- Schedule CR
- Form 760C or Form 760F
- Virginia Credit Schedules
- Other Virginia Statements or Schedules
- Federal Schedules C, C-EZ , E and F
- Required attachments
- Other federal forms as applicable
Reminder: Keep copies of your completed Form 760 and all supporting documentation for three years.
Instructions for Form 760
Name and Address
Enter your name and mailing address in the space provided. If you use Filing Status 3 (married filing separate returns), do not enter your spouse's name in the spouse name field. Instead, enter your spouse's name in the space beside the Filing Status code box.
Address Change: If your address has changed since last filing, fill in the oval in the street address area.
Social Security Number
Enter your Social Security Number and the first four letters of your last name in the boxes. If using Filing Status 2, you must also enter the Social Security Number and first four letters of your spouse's last name. If using Filing Status 3, enter your spouse's Social Security Number and record your spouse's name on the line beside the Filing Status code box.
Privacy Act. In compliance with the Privacy Act of 1974, disclosure of your Social Security Number is mandatory under Va. Code § 58.1-209. Your Social Security Number is used both as a means of identifying your income tax return and of verifying the identity of individuals claiming tax refunds.
Date of Birth
Please be sure to provide your date of birth. This information is used by the Department to verify taxpayer identity. If you are filing a joint return, enter your date of birth and your spouse's date of birth in the same order as your names and Social Security numbers.
Surviving Spouse filing Joint Return: As the surviving spouse, you are considered the primary taxpayer. To complete your return:
- List your name, Social Security Number and Date of Birth first on the return
- Include your spouse's name, Social Security Number and Date of Birth in the fields labeled for "Spouse"
- Fill-in the Deceased oval next to the field for your spouse's Date of Birth
- Any refund issued will be made payable to the surviving spouse. The refund may be direct deposited
- No additional documentation or forms are required
Single Filers: If you are the court-appointed or certified Personal Representative (also referred to as Executor or Administrator) of the decedent's estate, include a copy of the court certificate showing your appointment with the return.
- Any refund issued will be made payable to the estate of the decedent
- The check may be cashed or deposited with the endorsement of the court-appointed Personal Representative
Joint Filers, both Taxpayers Deceased: Follow the instructions for Single Filers.
Important: If a refund is due, the refund will be issued in the name of the surviving spouse or the estate of the decedent(s) unless a properly completed copy of federal Form 1310 is provided. When filing electronically, the Form 1310 must be included with the federal filing.
Fill in any ovals that apply.
- Name or filing status has changed.
- Virginia return not filed last year.
- Dependent on another's return.
- Qualifying farmer, fisherman or merchant seaman. Fill in this oval if at least 2/3 of your gross income is a result of self-employment as a farmer, fisherman or merchant seaman.
- Amended Return. Fill in both ovals if amending due to Net Operating Loss Deductions.
- Overseas on due date. If you were overseas on May 1, 2015, fill in this oval and attach a statement explaining your situation. Your return is due by July 1, 2015.
- Federal Schedule C filed with federal return
- Earned Income Tax Credit claimed on federal return. If you claimed an Earned Income Tax Credit on your federal return, fill in the oval and enter the amount of the federal credit claimed.
Virginia Driver's License ID
Enter the last 5 digits of your Virginia Driver's License identification number. If filing a joint return, enter the Virginia Driver's License identification number of both spouses. This information is requested for taxpayer identification purposes.
Locality Code: Use the list on Page 45 to look up the 3-digit code for the locality in which you lived on January 1, 2015. Enter the corresponding number in the boxes provided on Form 760. Local school funding is allocated based in part on this information.
In most cases, your filing status will be the same as the one you selected on your federal return. Enter the applicable number to indicate your filing status.
1 = Single
2 = Joint
3 = Married filing separately
Fill in the Head of Household oval if you checked the Head of Household box on your federal return. For more information, go to the filing status section on the Departments's website: www.tax.virginia.gov.
If using Filing Status 3, enter the spouse's Social Security Number at the top of the form and the spouse's name on the line provided.
Same-sex couples that are married under the law of any state are now recognized as married couples for Virginia income tax purposes. For more information, see Virginia Tax Bulletin 14-7 (Public Document 14- 174, 10/7/14).
If one spouse is a Virginia resident and the other is a nonresident, you may not file a joint Virginia return unless you both elect to determine your joint Virginia taxable income as if you were both Virginia residents. If the spouses do not make such election, the resident spouse must file a separate return (Form 760) using Filing Status 3. If the nonresident spouse has Virginia source income to report, he or she must file a separate return using Form 763. The spouses must compute their itemized deductions and allocate exemptions for dependents as if they had filed separate federal returns. As a general rule, the spouse claiming an exemption for a dependent must be reporting at least half of the total federal adjusted gross income. In addition, each spouse must be able to support his or her claim of itemized deductions. If the underlying expenses for itemized deductions cannot be accounted for separately, each spouse must claim a proportionate share of the deductions based on his or her respective share of the joint federal adjusted gross income.
Enter the number of exemptions allowed in the boxes.
Dependents: Generally, you may claim the same number of dependent exemptions allowed on your federal return.
If using Filing Status 3, see the Filing Status instructions in the previous section for the rules on claiming dependents. You may never claim less than a whole exemption. The same dependent may not be claimed on separate returns.
Multiply the sum of exemptions claimed in the "You," "Spouse" and "Dependents" boxes by $930.
65 or Older: To qualify for the additional personal exemption for age 65 or older, you must have been age 65 or older on or before January 1, 2015.
Blind: To qualify for the additional personal exemption for the blind, you must have been considered blind for federal income tax purposes.
Multiply the sum of exemptions claimed for "65 or older" and "Blind" by $800.
Low-Income Individuals: You cannot claim the 65 or older or Blind exemptions if you also claimed a Credit for Low-Income Individuals on Line 24 of Form 760.
Exemption Amount: Add the dollar amount from Section A to the dollar amount from Section B. Enter this amount on Line 13.
Note for Filing Status 3: Each spouse must determine exemptions as if separate federal returns had been filed, using the federal rules for separate reporting. If dependent exemptions cannot be accounted for separately, they must be proportionately allocated between each spouse based on each spouse's income. One spouse may never claim less than a whole personal exemption.
All amounts entered on your return must be rounded to the nearest dollar. Amounts less than 50 cents should be rounded down while all amounts of 50 cents - 99 cents should be rounded up. Rounding to the nearest dollar improves return preparation accuracy and reduces processing time.
Line 1 Federal Adjusted Gross Income. Enter the federal adjusted gross income from your federal return. If married filing separately (Filing Status 3), enter only the amount of income attributable to you. Be sure to use the federal adjusted gross income amount, NOT federal taxable income.
Line 2 Additions. If you reported any additions on Schedule ADJ, enter the total amount from Line 3 of Schedule ADJ.
Line 3. Add Lines 1 and 2 and enter the total.
Line 4 Age Deduction. Are you eligible to claim an age deduction? For the 2014 taxable year, taxpayers born on or before January 1, 1950, may qualify to claim an age deduction based on their birth date, filing status and income. A taxpayer who claims an age deduction may NOT claim a disability income subtraction, credit for low-income individuals, or Virginia earned income credit.
For married taxpayers, each eligible spouse may take either an age deduction or a disability income subtraction. Neither spouse may claim an age deduction if one spouse claimed a credit for low-Income Individuals or Virginia earned income credit, even if filing separate returns. Claim the deduction or subtraction that gives you the greatest tax benefit.
If you or your spouse are not claiming a disability subtraction or a credit for earned or low-income and your birth date is on or before January 1, 1950, read below.
Taxpayers Age 65 and Older
If you or your spouse were born on or before January 1, 1950, you may qualify to claim an age deduction of up to $12,000 each for 2014. The age deduction you may claim depends on your birth date, filing status and income.
If your birth date is:
- On or before January 1, 1939: You may claim an age deduction of $12,000. If you are married, each spouse born on or before January 1, 1939, may claim a $12,000 age deduction. For individuals born after January 1, 1939, the age deduction is based on the criteria below.
- On or between January 2, 1939, and January 1, 1950: Your age deduction is based on your income. A taxpayer's income, for purposes of determining an income-based age deduction, is the taxpayer's adjusted federal adjusted gross income or "AFAGI." A taxpayer's AFAGI is the taxpayer's federal adjusted gross income, modified for any fixed date conformity adjustments and reduced by any taxable Social Security and Tier 1 Railroad Benefits.
For Filing Status 1, single taxpayers, the maximum allowable age deduction of $12,000 is reduced $1 for every $1 the taxpayer's AFAGI exceeds $50,000.
For all married taxpayers, whether filing jointly or separately, the maximum allowable age deduction of $12,000 each is reduced $1 for every $1 the married taxpayers' joint AFAGI exceeds $75,000.
All Married Taxpayers: A married taxpayer's income- based age deduction is always determined using the married taxpayers' joint AFAGI. Regardless of whether filing jointly or separately, if you are married, your income-based age deduction is determined using the combined income of both spouses. If both spouses are claiming an income-based age deduction, regardless of whether filing jointly or separately, the married taxpayers must compute a joint age deduction first, then allocate half of the joint deduction to each spouse.
Line 5 Social Security Act and Equivalent Tier 1 Railroad Retirement Act Benefits. Enter the amount of taxable social security and/or Tier 1 Railroad Retirement Act Benefits that you included in your federal adjusted gross income.
Do not include Tier 2 Railroad Retirement Benefits and Other Railroad Retirement and Railroad Unemployment Benefits. See instructions for Schedule ADJ to determine if these benefits can be included as other subtractions.
Line 6 State Income Tax Refund or Overpayment Credit. Enter the amount of any state income tax refund or overpayment credit that you reported as income on your federal return.
Line 7 Subtractions. If you reported any other subtractions on Virginia Schedule ADJ, enter the total amount from Line 7 of Schedule ADJ.
Line 8. Add Lines 4, 5, 6 and 7 and enter the total.
Line 9 Virginia Adjusted Gross Income. Subtract Line 8 from Line 3 and enter the total. Compare this number with the filing threshold for your filing status on Page 3 to see if you are required to file Form 760. If your income is below the threshold amount, but you had Virginia income tax withheld or made estimated tax payments, follow the instructions on Page 3 to complete your return and claim your refund.
ITEMIZED OR STANDARD DEDUCTIONS
You must claim the same type of deductions (standard or itemized) on your Virginia return as you claimed on your federal return. Your state and local income taxes must be subtracted from your itemized deductions. Property and other taxes included as deductions on your federal return are also allowed on your Virginia return. If one spouse claims itemized deductions, the other spouse must also claim itemized deductions.
If a joint federal return was filed and you are filing separate returns in Virginia (Filing Status 3), itemized deductions that cannot be accounted for separately must be allocated proportionately between spouses based on each spouse's share of the combined federal adjusted gross income.
Line 10 Itemized Deductions. You must claim itemized deductions on your Virginia return if you claimed itemized deductions on your federal return. Before making an entry on Form 760, Line 10, answer the following questions:
Do you have an addition (Schedule ADJ, Line 2a) or subtraction (Schedule ADJ, Line 6a) for Fixed Date Conformity?
YES. Refer to Page 12 and follow the instructions on the FDC Worksheet and Itemized Deduction Worksheet to complete Form 760, Lines 10 - 11.
NO. Are your itemized deductions on your federal return limited?
YES. Refer to Page 12 and follow the instructions on the Itemized Deduction Worksheet to complete Form 760, Lines 10 - 11.
NO. Enter the total from federal Schedule A on Form 760, Line 10.
Line 11 State and Local Income Taxes claimed on Schedule A. Enter the state and local income tax from federal Schedule A.
Line 12 Net Itemized Deductions or Standard Deductions. If claiming itemized deductions, subtract Line 11 from Line 10. Otherwise enter standard deduction.
If you claimed the standard deduction on your federal return, you must also claim the standard deduction on your Virginia return. Enter on Line 12 the amount listed below that corresponds with your filing status.
Filing Status 1...............Enter $3,000
Filing Status 2...............Enter $6,000
Filing Status 3...............Enter $3,000
Do not complete Lines 10 or 11 when claiming a standard deduction.
Dependent on Another's Return - If you can be claimed as a dependent on the federal return of another taxpayer, your standard deduction is limited to the amount of your earned income. Enter the smaller of the amount of earned income or the standard deduction amount on Line 12.
Line 13 Exemptions. Enter the sum of the total dollar amount from Exemption Section A and the total dollar amount from Exemption Section B.
Line 14 Deductions. If you reported any deductions on Schedule ADJ, enter the total amount from Line 9 of Schedule ADJ. You must attach the Schedule ADJ to your return.
Line 15 Add Lines 12, 13 and 14 and enter the total.
Line 16 Virginia Taxable Income. Subtract Line 15 from Line 9.
Line 17 Amount of Tax. To compute your tax, you can use either the tax table or the tax rate schedule on Page 36 or use the Tax Calculator on the Department's website.
Line 18 Spouse Tax Adjustment (STA). Couples filing jointly under Filing Status 2 may reduce their tax by up to $259 with the STA if both have taxable income to report and their combined taxable income on Line 16 is more than $3,000.
Use the STA Worksheet on Page 14 or the STA Calculator on the website at www.tax.virginia.gov to complete this line.
Enter the computed STA amount on Line 18 of Form 760. You must also enter the Virginia Adjusted Gross Income (VAGI) for your spouse.
Using the STA, couples filing joint returns will not pay higher taxes than if they had filed separate returns.
HOW IT WORKS: Virginia tax rates increase with income: 2% up to $3,000; 3% from $3,001 to $5,000; 5% from $5,001 to $17,000; and 5.75% for income over $17,000. The STA lets both incomes reported on jointly filed returns benefit from the lower tax rates.
EXAMPLE: The Smiths have combined Virginia taxable income of $47,000. One spouse's income is $35,000 and the other spouse's income is $12,000. Without the STA, their Virginia tax is $2,445. With the STA, both spouses benefit from the lower tax rates. Using the STA Calculator at www.tax.virginia.gov, the Smiths compute the STA of $220, reducing their taxes to $2,225.
Line 19 Net Amount of Tax. Subtract Line 18 from Line 17 and enter the difference on Line 19.
Line 20a Virginia Tax Withheld During the 2014 Taxable Year. Enter the amount of Virginia tax withheld from your W-2, 1099 and VK-1 form(s) in the box labeled "Your Virginia Withholding".
Line 20b. If filing a joint return, enter the amount of Virginia tax withheld from your spouse's W-2, 1099 and VK-1 form(s) in the box labeled "Spouse's Virginia Withholding".
Line 21 Estimated Payments for the 2014 Taxable Year. Enter the total amount of your 2014 estimated payments.
If you did not have enough income tax withheld this year, you may need to increase the amount of tax withheld or pay estimated income tax for 2015. Generally, you are required to make payments of estimated income tax if your estimated Virginia tax liability exceeds your Virginia withholding and other tax credits by more than $150. To make estimated payments, file Form 760ES or file online at www.tax.virginia.gov.
Line 22 Overpayment from prior year. Enter amount of 2013 overpayment applied toward 2014 estimated tax.
Line 23 Extension Payments. Enter the amount of tentative tax paid with your Form 760IP or the amount paid if you made an extension payment on the Department's website.
Line 24 Tax Credit for Low-Income Individuals or Virginia Earned Income Credit. If you claimed a Credit for Low-Income Individuals or Virginia Earned Income Credit, enter the total amount from Line 17 of Schedule ADJ. Refer to Page 24 of this instruction booklet for additional information. The amount of the credit claimed may not exceed your tax liability on Line 19 of Form 760. For example, if the net tax on Line 19 is $141, and the allowable amount of your eligible credit is $300, then enter $141 on Line 24.
Line 25 Credit for Tax Paid to Another State. Enter the amount of credit for tax paid to another state that you claimed on Schedule OSC, Line 21. Refer to Page 28 for additional information. You must attach Schedule OSC and a copy of each state return for which you are claiming credit. The other state's return must show the computation of tax due.
Line 26 Credit for Political Contributions. The Political Contributions Credit is available to individuals who make contributions to candidates for state or local political office. The credit is 50% of the amount of the contribution, subject to a $25 limit for individuals and a $50 limit for married taxpayers filing jointly and cannot exceed your tax liability.
Line 27 Credits from attached Schedule CR. If you claimed any credits on Virginia Schedule CR, enter the amount from Section 5, Part 1, Line 1A of Virginia Schedule CR.
Note: The Credit for Low-Income Individuals, the Credit for Taxes Paid to Another State and most credits from Schedule CR are nonrefundable. The total of all nonrefundable credits cannot exceed your tax liability as shown on Line 19 of Form 760.
Line 28 Total Payments and Credits. Add the amounts on Lines 20a through 27.
Line 29 Tax You Owe. If Line 28 is smaller than Line 19, subtract Line 28 from Line 19. This is the amount of tax you owe.
Line 30 Overpayment Amount. If Line 19 is smaller than Line 28, subtract Line 19 from Line 28. This is the amount of tax you have overpaid.
Line 31 Credit to Next Year's Estimated Tax. If you would like some or all of your overpayment from Line 30 credited to your estimated taxes for next year, enter the amount on Line 31.
Line 32 Virginia College Savings PlanSM Contributions. If you would like to contribute some or all of your refund to one or more Virginia College Savings Plan accounts, enter the amount from Schedule VAC, Part I, Section B, Line 6.
Line 33 Other Contributions from Schedule VAC. If you contributed to one or more other voluntary contribution organizations listed in the income tax instructions, enter the amount from Schedule VAC, Part II, Section D, Line 14.
Line 34 Addition to Tax, Penalty and Interest. Enter the amount form Schedule ADJ, Line 21.
Line 35 Consumer's Use Tax. You are required to pay consumer's use tax on purchases, leases, and rentals of tangible personal property acquired in or outside Virginia for storage, use or consumption in Virginia if retail sales and use tax was not collected on the transaction. Examples include untaxed purchases made (1) over the Internet, (2) through out-of-state mail order catalogs, or (3) while traveling out-of-state.
If the amount of purchases from out-of-state mail order catalogs totaled $100 or less for the entire year, you do not have to pay consumer's use tax on these purchases. If the purchases were from out-of-state mail order catalogs and exceed $100, or the purchases were of any amount from sources other than mail order catalogs, then you must pay consumer's use tax on the total amount of untaxed purchases made during the calendar year from all sources. The tax is based on the "cost price" of the goods and does not include separately stated shipping or delivery charges but it does include any "shipping and handling" charges if listed as a combined item on the sales invoice.
Nonprescription drugs and proprietary medicines purchased for the cure, mitigation, treatment, or prevention of disease in human beings are exempt from the consumer's use tax.
The general tax rate is 6% in the following cities and counties in the Hampton Roads and Northern Virginia regions:
- Chesapeake City
- Alexandria City
- Franklin City
- Fairfax City
- Hampton City
- Falls Church City
- Newport News City
- Manassas City
- Norfolk City
- Manassas Park City
- Poquoson City
- Arlington County
- Portsmouth City
- Fairfax County
- Suffolk City
- Loudoun County
- Virginia Beach City
- Prince William County
- Williamsburg City
- Isle of Wight County
- James City County
- Southampton County
- York County
The general tax rate is 5.3% in all other areas of Virginia.
Statewide, the tax rate on food purchased for home consumption is 2.5%.
Visit www.tax.virginia.gov for more information. Enter the amount of Consumer Use Tax you owe on Form 760, or file Form CU-7.
Line 36. Add Lines 31 - 35.
Line 37 Amount You Owe. If you owe tax on Line 29, add Lines 29 and 36 and enter the total.
If Line 30 is less than Line 36, subtract Line 30 from Line 36 and enter the difference.
If your bank does not honor your payment to the Department, the Department may impose a penalty of $35, as authorized by Va. Code § 2.2-614.1. This penalty will be assessed in addition to other penalties, such as the penalty for late payment of a tax.
Web Payments: Use the Department's website, www.tax.virginia.gov/ind, to make a payment online. Payments are electronically transferred from your savings or checking account. There is no fee charged by the Department.
Check: If you file your return locally, make your check payable to the Treasurer or Director of Finance of the city or county in which you reside; otherwise, make your check payable to the Department of Taxation. See Page 45 for a listing of localities. Make sure your Social Security Number is on your check and make a notation that it is your 2014 Virginia income tax payment.
If you file but do not pay with the return, you will be billed if your payment is not submitted by May 1st. To submit a payment separately from the return, but on or before May 1st, go to the Department's website and download the Form 760PMT. Important: Never submit Form 760PMT with a copy of your return.
Credit or Debit Card: Call 1-800-2PAY-TAX, or visit www.officialpayments.com to pay on the Internet. The jurisdiction code for Virginia is 1080. You will need this number when you make a credit or debit card payment.
If you have already filed your return with your Commissioner of the Revenue and did not fill in the credit or debit card oval, call your local Commissioner of the Revenue's office for the correct jurisdiction code prior to initiating your credit or debit card payment. Phone numbers are listed beginning on Page 45.The company processing the transaction will assess an additional fee. Prior to payment, you will be informed of the fee and will have the option to cancel the transaction at that time with no charge.
After you complete the transaction be sure to fill in the oval on Line 37 indicating that you have arranged for a credit or debit card payment.
Line 38. If Line 30 is greater than Line 36, enter the difference in the box. This is your refund.
If you do not provide the direct deposit banking information, the Department of Taxation will issue a refund debit card to you.
Debit Card: The Commonwealth of Virginia has replaced individual income tax refund checks with debit cards. If you do not choose the direct deposit option for your refund by filling in the applicable information on Form 760, the Department of Taxation will issue a debit card to you.
Important: The Department of Taxation is not responsible for a lost refund if you enter the wrong account information. Check with your financial institution to get the correct routing and account numbers and to make sure your direct deposit will be accepted. Do not use the routing number on a deposit slip if it is different from the routing number on your checks.
Direct Deposit - Get your refund faster: Have your refund deposited directly into your bank account. Fill in the bank account information and indicate whether the account number is for a checking or savings account.
Note: Due to electronic banking rules, the Department will not allow direct deposits to or through foreign financial institutions. Attempting to use direct deposit to transfer funds electronically to a financial institution outside the territorial jurisdiction of the United States will significantly delay your refund. Visit www.tax. virginia.gov for details.
Bank Routing Number: Enter your bank's 9-digit routing transit number printed on the bottom of your check. The first 2 digits of the routing number must be 01 through 12 or 21 through 32. Do not use a deposit slip to verify the number. It may contain internal routing numbers that are not part of the actual routing number.
Bank Account Number: Enter your bank account number up to 17 digits. Do not enter hyphens, spaces or special symbols. Enter the number from left to right and leave any unused boxes blank. Do not include the check number.
Remember: It is always faster and more efficient to file your return electronically. If you file your tax return electronically your refund will typically be processed in about 1 week. If you file your tax return on paper, your refund will take about 6 weeks.
Fill in All Ovals that Apply
- I (We) authorize the Department of Taxation to discuss my (our) return with my (our) preparer. By marking this oval you are authorizing the Department of Taxation to respond directly to inquiries from your preparer without contacting you separately for authorization.
- Electronic Form 1099-G. Mark this oval if you would like to obtain your Form 1099-G/1099-INT statement electronically instead of receiving a copy by mail. Form 1099-G/1099-INT is an informational statement issued by the Department in January of each year to report payments made or credited to taxpayers during the previous calendar year. These statements must be used in preparing federal returns by taxpayers who itemize deductions. The statement is also provided to those who receive interest payments of $10 or more during the year. Form 1099-G/1099-INT may be downloaded securely and printed from the Department's website, www.tax.virginia.gov.
Be sure to sign and date your return. If filing jointly, both spouses must sign the return. In so doing, you agree that filing jointly on this return makes you jointly and severally liable for the tax due and any refunds will be paid jointly. Include your phone numbers in the spaces provided.
Tax Preparer Information
If you paid someone to prepare your return, the preparer should provide his or her contact information in the spaces provided.
Any person who prepares, or employs one or more individuals to prepare, 50 or more individual income tax returns for compensation is required to file all individual income tax returns using e-File. An income tax return preparer does not include volunteers who prepare tax returns for the elderly or poor as part of a nonprofit organization's program.
Tax preparers may request a hardship waiver to these filing requirements by completing and submitting Form 8454P. For additional information, visit www.tax. virginia.gov.
Paid tax preparers are required to complete the Filing Election field located at the bottom of Page 2 of Form 760 using one of the codes below.
Code 2 - Taxpayer opted out of electronic filing.
Code 3 - Preparer prepares less than 50 returns annually.
Code 4 - Preparer capable of electronic filing, but return cannot be accepted electronically.
Code 5 - Preparer has a hardship waiver.
Code 6 - Preparer capable of electronic filing, but not yet approved as electronic return originator by IRS.
Enter the preparer's identification number provided by the IRS.
Instructions for Virginia Schedule ADJ
FIXED DATE CONFORMITY UPDATE FOR 2014
Virginia's Fixed Date Conformity with the Internal Revenue Code: Virginia's date of conformity with the federal enhanced Earned Income Tax Credit ("EITC") was extended to taxable years ending before January 1, 2018. Low-Income taxpayers may also continue to claim the portion of the Virginia Low-Income Tax Credit that is based on the federal EITC without making complex adjustments on their Virginia income tax returns.
Virginia's date of conformity with the other provisions of the Internal Revenue Code (IRC) remains January 2, 2013. Congress did not enact any federal tax legislation that would impact Virginia after January 2, 2013, so taxpayers may still use their federal adjusted gross income as the starting point for calculating their Virginia taxable income, with limited exceptions. Virginia will continue to disallow federal income tax deductions for bonus depreciation allowed for certain assets under IRC §§ 168(k), 168(l), 168(m), 1400L and 1400N; the five-year carryback of federal net operating loss deductions generated in taxable year 2008 or 2009; and federal income tax deductions for applicable high yield discount obligations under IRC § 163(e) (5)(F).
At the time these instructions went to print, the only required adjustments for "fixed date conformity" were those mentioned above. However, if federal legislation is enacted that results in changes to the IRC for the 2014 taxable year, taxpayers will be required to make adjustments to their Virginia returns that are not described in the instruction booklet. Information about any such adjustments will be posted on the Department's website at www.tax.virginia.gov.
Additions to Income
Enter your name in the box in the top left corner of Schedule ADJ (both names if filing jointly) and the Social Security Number of the primary taxpayer as shown on your Virginia Individual Income Tax Return.
Line 1 Interest on obligations of other states
Enter the amount of any interest on obligations of other states not included in your Federal Adjusted Gross Income, which is taxable in Virginia, less related expenses.
Line 2 Other additions to Federal Adjusted Gross Income
Line 2a Fixed Date Conformity Addition
A. Bonus Depreciation If depreciation was included in the computation of your Federal Adjusted Gross Income and one or more of the depreciable assets received the special 30% or 50% bonus depreciation deduction for federal purposes in any taxable year from 2001 through 2014, then depreciation must be recomputed for Virginia purposes as if such assets did not receive the special 30% or 50% bonus depreciation deduction for federal purposes in any taxable year from 2001 through 2014. If the total 2014 Virginia depreciation is less than 2014 federal depreciation, then the difference must be recognized as an addition.
Enter the amount that should be added to Federal Adjusted Gross Income based upon the recomputation of allowable depreciation.
B. Other Fixed Date Conformity Additions If you are required to make any Other Fixed Date Conformity additions, enter the total amount of such additions on this line. Also, please attach a schedule and explanation of such additions.
Enter any other Fixed Date Conformity additions here
|C. Enter the total of Lines A and B above and on Schedule ADJ, Line 2a||
Lines 2b - 2c Other Additions
On Lines 2b - 2c, enter the 2 digit code listed below, followed by the amount, for any additions to federal adjusted gross income in the categories listed below. If you have more than two additions on Lines 2b-2c of Schedule ADJ, enter the code "00" and the total addition amount on 2b and attach an explanation of each addition to your return.
|10||Interest on federally exempt U.S. obligations Enter the amount of interest or dividends exempt from federal income tax, but taxable in Virginia, less related expenses.|
|11||Accumulation distribution income Enter the taxable income used to compute the partial tax on an accumulated distribution as reported on federal Form 4970.|
Lump-sum distribution income - If you received a lump-sum distribution from a qualified retirement plan and used the 20% capital gain election, the ten-year averaging option, or both on federal Form 4972, complete the table below:
|14||Income from Dealer Disposition of Property - Enter the amount that would be reported under the installment method from certain dispositions of property. If, in a prior year, the taxpayer was allowed a subtraction for certain income from dealer dispositions of property made on or after January 1, 2009, in the years following the year of disposition, the taxpayer is required to add back the amount that would have been reported under the installment method. Each disposition must be tracked separately for purposes of this adjustment.|
Telework Expenses - 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.
|17||First-Time Home Buyer Savings Accounts - To the extent excluded from federal adjusted gross income, an account holder must add any loss attributable to his or her first-time home buyer savings account that was deducted as a capital loss for federal income tax purposes.For more information, see the First- Time Home Buyer Savings Account Guidelines, available in the Laws, Rules & Decisions section of the Department's website at www.tax.virginia.gov.|
|99||Other - Enter the amount of any other income not included in federal adjusted gross income, which is taxable in Virginia. Attach an explanation of the addition.|
Line 3 Total Additions
Add Lines 1 through 2c and enter the total in the box. Enter this amount on Line 2 of Virginia Form 760.
Subtractions from Income
To the extent included in federal adjusted gross income, the following subtractions are allowed on the Virginia return. No amount previously excluded from FAGI can be claimed as a subtraction in computing Virginia taxable income. The same income may not be included in more than one subtraction.
Special instructions for members of the military - Virginia law provides three subtractions for military servicemembers.
- military pay and allowances earned while serving in a combat zone or qualified hazardous duty area (Va. Code § 58.1-322 C 21);
- military basic pay for personnel on extended active duty for periods in excess of 90 consecutive days (Va. Code § 58.1-322 C 23); and
- wages or salaries received for active and inactive service in the National Guard of the Commonwealth (Va. Code § 58.1-322 C 11).
Servicemembers may be eligible for more than one subtraction, but the same income may not be included in more than one subtraction. For example, a servicemember may not deduct the same income for both the military basic pay subtraction and the National Guard subtraction.
Line 4 Obligations of the U.S.
Enter the amount of any income (interest, dividends and gain) from obligations of the U.S. that are included in your federal adjusted gross income, but are exempt from Virginia state tax.
Income from obligations issued by the following organizations IS NOT taxable in Virginia: Tennessee Valley Authority, Federal Deposit Insurance Corporation; Federal Home Loan Bank; Federal Intermediate Credit Bank; Governments of Guam, Puerto Rico and Virgin Islands; U.S. Treasury bills, notes, bonds and savings bonds; Federal Land Bank; Federal Reserve Stock; Farm Credit Bank; Export-Import Bank of the U.S.; U.S. Postal Service; and Resolution Trust Corporation.
Income from obligations issued by the following organizations IS taxable in Virginia: Federal Home Loan Mortgage Corporation, Federal National Mortgage Association, Government National Mortgage Association, Inter-American Development Bank, and International Bank for Reconstruction and Development.
Line 5 Disability Income
Enter the amount of disability income reported as wages (or payments in lieu of wages) on your federal return for permanent and total disability. On joint returns, each spouse can qualify for the deduction. Individuals can subtract up to $20,000 of disability income, as defined under IRC § 22(c)(2)(b)(iii).
Enter YOUR subtraction on Line 5a and your SPOUSE'S subtraction on Line 5b.
A taxpayer cannot claim an age deduction on Line 4 of Form 760 and a subtraction for disability income. Claim the one that benefits you the most. For married taxpayers filing a joint return, each taxpayer may claim, if applicable, an age deduction or a subtraction for disability income.
Line 6 Other subtractions from federal adjusted gross income
Line 6a - Special Fixed Date Conformity Subtraction
A. Bonus Depreciation If depreciation was included in the computation of your Federal Adjusted Gross Income and one or more of the depreciable assets received the special 30% or 50% bonus depreciation deduction for federal purposes in any taxable year from 2001 through 2014, then depreciation must be recomputed for Virginia purposes as if such assets did not receive the special 30% or 50% bonus depreciation deduction for federal purposes in any taxable year from 2001 through 2014. If the total 2014 Virginia depreciation is more than 2014 federal depreciation, then the difference must be recognized as a subtraction.
Enter the amount that should be subtracted from Federal Adjusted Gross Income based upon the recomputation of allowable depreciation. ............A._____
B. Other Fixed Date Conformity Subtractions If you are required to make any Other Fixed Date Conformity subtractions, enter the total amount of such subtractions on this line. Also, attach a schedule and explanation of such subtractions.
Enter total amount of such subtractions here................B._____
C. Add Lines A and B. Enter here and on Schedule ADJ, Line 6(a).............................C._____
Lines 6b - 6d Other subtractions
On Lines 6b-6d, enter the 2-digit code, listed in the following table, in the boxes on Schedule ADJ, followed by the amount, for any subtractions from federal adjusted gross income in the categories listed below.
Other Subtractions for Lines 6b - 6d
If you have more than 3 subtractions on Lines 6b- 6d of Schedule ADJ, enter the code "00" and the amount of total subtractions in the first box and attach an explanation of each subtraction to your return.
|20||Income from Virginia Obligations - Enter the amount of income from Virginia obligations that you included in your federal adjusted gross income. Income from Virginia obligations would include interest on Virginia state bonds or municipal obligations and gains from sales of those obligations that are included in your federal adjusted gross income.|
|21||Federal Work Opportunity Tax Credit Wages - Enter the amount of wages or salaries eligible for the federal work opportunity tax credit that you included in your federal adjusted gross income. Do not enter the federal credit amount.|
Tier 2 and Other Railroad Retirement and Railroad Unemployment Benefits - Enter the amount of Tier 2 vested dual benefits and other Railroad Retirement Act benefits and Railroad Unemployment Insurance Act benefits included in federal adjusted gross income and reported on your federal return as a taxable pension or annuity.
|24||Virginia Lottery Prizes - Enter the sum of all prizes under $600 awarded to you by the Virginia Lottery Department to the extent that you included them in your federal adjusted gross income.|
|28||Virginia National Guard Income - Enter the amount of wages or salaries for active and inactive service in the National Guard of the Commonwealth of Virginia for persons of rank O3 and below included in federal adjusted gross income. This amount may not exceed the amount of income received for 39 days or $3,000, whichever is less. Reminder: This subtraction does not apply to members of the active or reserve units of the Army, Navy, Air Force or Marines, or the National Guard of other states or the District of Columbia. If you claim this subtraction, you cannot claim a credit for Low Income Individuals or Virginia Earned Income Credit.|
|30||Military Pay and Allowances Attributable to Active Duty Service in a Combat Zone or a Qualified Hazardous Duty Area - To the extent included in federal adjusted gross income and not otherwise subtracted, deducted or exempted, enter military pay and allowances earned while serving by the order of the President of the United States with the consent of Congress in a combat zone or qualified hazardous duty area treated as a combat zone for federal tax purposes pursuant to IRC § 112.|
|31||Retirement Plan Income Previously Taxed by Another State - Enter the amount of retirement income received during the taxable year on which the contributions were taxed in another state, but were deductible from federal adjusted gross income during the same period. The total amount of this subtraction cannot exceed the amount of the contributions previously taxed by another state, usually in a previous year.|
|34||Virginia College Savings Plan Income Distribution or Refund - Enter the amount of any income included in federal adjusted gross income that is attributable to a distribution of benefits or a refund from the Virginia College Savings Plan (previously called the Virginia Higher Education Tuition Trust Fund), in the event of a beneficiary's death, disability or receipt of scholarship.|
|37||Unemployment Compensation Benefits - Enter the amount of unemployment compensation benefits received during the taxable year reported as income on your federal income tax return.|
|38||Basic Military Pay - Military service personnel may subtract up to $15,000 of military basic pay received during the taxable year, provided they are on extended active duty for a period in excess of 90 consecutive days. Military personnel stationed inside or outside Virginia are eligible. This subtraction is allowed for military basic pay that is included in federal adjusted gross income and is not included in another subtraction, such as the Virginia National Guard Income Subtraction. If the military basic pay does not exceed $15,000, then the entire amount may be subtracted. If the basic military pay is over $15,000, then the subtraction is reduced by the amount exceeding $15,000. For every $1.00 of income over $15,000, the maximum subtraction is reduced by $1.00. If your basic military pay is $30,000 or more, you are not entitled to a subtraction. On joint returns, each spouse can qualify for the subtraction. If you claim this subtraction, you cannot claim a Credit for Low-Income Individuals or Virginia Earned Income Credit.|
|39||Federal and State Employees - Any individual who qualifies as a federal or state employee earning $15,000 or less in annual salary from all employment can subtract up to $15,000 of the salary from that state or federal job. If both spouses on a joint return qualify, each spouse may claim the subtraction. The subtraction cannot exceed the actual salary received. If you claim this subtraction, you cannot claim a Credit for Low-Income Individuals or Virginia Earned Income Credit.|
|40||Income Received by Holocaust Victims -To the extent included in your federal adjusted gross income, subtract any income resulting from the return or replacement of assets stolen during the Holocaust and throughout the time period leading up to, during, and directly after World War II as a result of: Nazi persecution, an individual being forced into labor against his or her will, transactions with or actions of the Nazi regime, treatment of refugees fleeing Nazi persecution, or holding of such assets by entities or persons in the Swiss Confederation.|
|41||Payments Made under the Tobacco Settlement -Enter the amount of payments received under the Tobacco Master Settlement Agreement and the National Tobacco Grower Settlement Trust, provided they have not been deducted for federal tax purposes.|
|42||Gain on the Sale of Land for Open Space Use -Enter the amount of any gain on the sale or exchange of real property or easement to real property that results in the property or easement being devoted to open-space use, as defined in Va. Code § 58.1-3230, for a period not less than 30 years.|
|44||Congressional Medal of Honor Recipients - Enter the amount of military retirement income you received as an individual awarded the Congressional Medal of Honor.|
|46||Military Death Gratuity Payments -Retroactive to the 2001 taxable year, survivors of military personnel killed in the line of duty may claim a subtraction for military death gratuity payments made after September 11, 2001, to the extent that the payments were included in federal adjusted gross income.|
|49||Certain Death Benefit Payments -Allows a beneficiary taxpayer to subtract the death benefit payments received from an annuity contract that are subject to federal income taxation, for taxable years beginning on or after January 1, 2007. In order to qualify for this subtraction, a death benefit payment is required to meet the following criteria: 1) the death benefit payment is made pursuant to an annuity contract with an insurance company; 2) the payment must be awarded to the beneficiary in a lump sum; and 3) the payment must be subject to taxation at the federal level.|
|51||Gains from Land Preservation - To the extent a taxpayer's federal gain includes gain or loss recognized on the sale or transfer of a Land Preservation Tax Credit, the taxpayer is required to subtract the gain or add back the loss on their Virginia return.|
|52||Long-Term Capital Gain - Income taxed as a long-term capital gain, or any income taxed as investment services partnership income for federal tax purposes is allowed as a subtraction provided the income is attributable to an investment in a "qualified business" as defined in Va. Code § 58.1-339.4 or in any other technology business approved by the Secretary of Technology. The business must have its principal facility in Virginia and less than $3 million in annual revenues for the fiscal year preceding the investment. The investment must be made between the dates of April 1, 2010, and June 30, 2015. Taxpayers claiming the Qualified Equity and Subordinated Debt Credit cannot claim this subtraction relating to investments in the same business. In addition, no investment is "qualified" for this deduction if the business performs research in Virginia on human embryonic stem cells.|
|53||Historic Rehabilitation - 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.|
|54||First-Time Home Buyer Savings Accounts -
To the extent included in federal adjusted gross income, an individual may subtract any income attributable to a first-time home buyer savings account that was taxed as interest, capital gains, or other income for federal income tax purposes.
Distributions from a first-time home buyer savings account may only be used for the purpose of paying or reimbursing the down payment and allowable closing costs for the purchase of a single-family residence in Virginia by a qualified beneficiary. The subtractions claimed by an account holder in all prior taxable years are subject to recapture in the taxable year in which account funds are withdrawn for any other purpose.
To claim the subtraction, an individual must designate an account as a first-time home buyer savings account. An individual may designate an account by submitting an attachment with their Virginia income tax return for the first taxable year in which such individual claims the subtraction. An individual must submit a separate attachment for each account that he or she is designating. The attachment must include the following information:
The account beneficiary or beneficiaries.
After designating an account as a first-time home buyer savings account, the account holder is required to include an attachment with updated information for the account for all future taxable years in which he or she is required to file a Virginia income tax return. If an account holder has designated more than one existing first-time home buyer savings account, the account holder is required to submit a separate attachment with updated information for each account. More information is available in the First-Time Home Buyer Savings Account Guidelines, which are available in the Laws, Rules & Decisions section of the Department's website at www.tax.virginia.gov.
|99||Other - Attach an explanation for other subtractions.|
Line 7 Total Subtractions
Add Lines 4 through 6d. Enter the sum in the box to the right and on Line 7 of Form 760.
Deductions from Income
Lines 8a - 8c Deductions
On Lines 8a-8c, enter the 3-digit code, listed in the following table, in the boxes on Schedule ADJ, followed by the amount, for any deductions from Virginia adjusted gross income in the categories listed below.
Do not fill in the loss box unless you are claiming a bank franchise deduction (Code 112). See the instructions at the end of this section.
Other Deductions for Lines 8a - 8c
If you have more than 3 deductions on Lines 8a- 8c of Schedule ADJ, enter the code "000" and the amount of total deductions in the first box and attach an explanation of each deduction to your return.
|101||Child and Dependent Care Expenses - You may claim this deduction on your Virginia return only if you were eligible to claim a credit for child and dependent care expenses on your federal return. Enter the amount on which the federal credit for child and dependent care is based. (This is the amount on federal Form 2441 or Schedule 2 of Form 1040A that is multiplied by the decimal amount - up to $3,000 for one dependent and $6,000 for two or more.). DO NOT ENTER THE FEDERAL CREDIT AMOUNT.|
|102||Foster Care Deduction - Foster parents may claim a deduction of $1,000 for each child residing in their home under permanent foster care, as defined in the Code of Virginia, providing they claim the foster child as a dependent on their federal and Virginia income tax returns.|
Bone Marrow Screening Fee - Enter the amount of the fee paid for an initial screening to become a possible bone marrow donor, provided you were not reimbursed for the fee and did not claim a deduction for the fee on your federal return.
|104||Virginia College Savings Plan Prepaid Tuition Contract Payments and Savings Account Contributions - If you are under age 70 on or before December 31 of the taxable year, enter the lesser of $4,000 or the amount paid during the taxable year for each prepaid tuition contract or a savings trust account entered into with the Virginia College Savings Plan (previously called the Virginia Higher Education Tuition Trust Fund). If you paid more than $4,000 per contract or account during the year, you may carry forward any undeducted amounts until the purchase price has been fully deducted. If you are age 70 or older on or before December 31 of the taxable year, you may deduct the entire amount paid to the Virginia College Savings Plan during the year.|
|105||Continuing Teacher Education - A licensed primary or secondary school teacher may enter a deduction equal to twenty percent of unreimbursed tuition costs incurred to attend continuing teacher education courses that are required as a condition of employment, provided these expenses were not deducted from federal adjusted gross income.|
|106||Long-Term Health Care Premiums - Enter the amount of premiums paid for long-term health care insurance, provided that they were not actually included as an itemized deduction on Schedule A of your federal income tax return.|
|107||Virginia Public School Construction Grants Program and Fund - Enter the amount of total contributions to the Virginia Public School Construction Grants Program and Fund, provided you have not claimed a deduction for this amount on your federal income tax return.|
|108||Tobacco Quota Buyout - Allows a deduction from taxable income for payments received in the preceding year in accordance with the Tobacco Quota Buyout Program of the American Jobs Creation Act of 2004 to the extent included in federal adjusted gross income. For example, on your 2014 Virginia return you may deduct the portion of such payments received in 2013 that is included in your 2013 federal adjusted gross income; while payments received in 2014 may generate a deduction on your 2015 Virginia return. Individuals cannot claim a deduction for a payment that has been, or will be, subtracted by a corporation unless the subtraction is shown on a Schedule VK-1 you received from an S Corporation. If you chose to accept payment in installments, the gain from the installment received in the preceding year may be deducted. If, however, you opted to receive a single payment, 10% of the gain recognized for federal purposes in the year that the payment was received may be deducted in the following year and in each of the 9 succeeding taxable years.|
|109||Sales Tax Paid on Certain Energy Efficient Equipment or Appliances - Allows an income tax deduction for 20% of the sales tax paid on certain energy efficient equipment or appliances, up to $500 per year. If filing a joint return, you may deduct up to $1,000.|
|110||Organ and Tissue Donor Expenses - Allows a deduction for unreimbursed expenses that are paid by a living organ and tissue donor that have not been taken as a medical deduction on the taxpayer's federal income tax return. The amount of the deduction is the lesser of $5,000 or the actual amount paid by the taxpayer. If filing a joint return, the deduction is limited to $10,000 or the actual amount paid.|
|111||Charitable Mileage - Enter the difference between 18 cents per mile and the charitable mileage deduction per mile allowed on federal Schedule A. If you used actual expenses for the charitable mileage deduction, and those expenses were less than 18 cents per mile, then you may use the difference between actual expenses and 18 cents per mile.|
Bank Franchise Subchapter S Corporation - Certain shareholders of small businesses may be able to deduct the gain or add the loss of the S Corporation. Complete the worksheet below to determine the amount of your adjustment.
Computation of Deduction for S Corporation Subject to Bank Franchise Tax
Certain shareholders of small business corporations subject to bank franchise tax may deduct the gain or add back the loss of the S Corporation. Complete the worksheet below to determine the amount of your adjustment.
|113||Income from Dealer Disposition of Property - Allows an adjustment for certain income from dealer dispositions of property made on or after January 1, 2009. In the year of disposition the adjustment will be a subtraction for gain attributable to installment payments to be made in future taxable years provided that (i) the gain arises from an installment sale for which federal law does not permit the dealer to elect installment reporting of income, and (ii) the dealer elects installment treatment of the income for Virginia purposes on or before the due date prescribed by law for filing the taxpayer's income tax return. In subsequent taxable years the adjustment will be an addition for gain attributable to any payments made during the taxable year with respect to the disposition. In the years following the year of disposition, the taxpayer would be required to add back the amount that would have been reported under the installment method. Each disposition must be tracked separately for purposes of this adjustment.|
|114||Prepaid Funeral, Medical, and Dental Insurance Premiums - You may be allowed a deduction of payments for (i) a prepaid funeral insurance policy that covers you or (ii) medical or dental insurance premiums for any person for whom you may claim a deduction for such premiums under federal income tax laws. To qualify for this deduction, you must be age 66 or older with earned income of at least $20,000 for the year and federal adjusted gross income not in excess of $30,000 for the year. The deduction is not allowed for any portion of premiums for which you have been reimbursed, have claimed a deduction for federal income tax purposes, have claimed another Virginia income tax deduction or subtraction, or have claimed a federal income tax credit or any Virginia income tax credit.|
|199||Other - Attach an explanation for other deductions.|
Line 9 Total Deductions: Add Lines 8a through 8c and enter the total in the box. Enter this amount on Line 14 of your Form 760.
Tax Credit for Low-Income Individuals or Virginia Earned Income Credit
You may be eligible to claim a Credit for Low-Income Individuals if your family Virginia adjusted gross income (family VAGI) is equal to or less than the federal poverty guidelines and you meet the Eligibility Requirements. You are eligible for the Virginia Earned Income Credit if you claimed an Earned Income Tax Credit on your federal return. You cannot claim both a Credit for Low- Income Individuals and a Virginia Earned Income Credit. Claim the credit that benefits you the most. Please complete the entire section.
Eligibility Requirements: The Credit for Low-Income Individuals or Virginia Earned Income Credit may NOT be claimed if you, your spouse, or any dependents claimed on your return or on your spouse's return claim any of the following:
- Age deduction
- Exemption for taxpayers who are blind or age 65 and over
- Virginia National Guard subtraction (see Subtraction Code 28)
- Basic military pay subtraction (see Subtraction Code 38)
- Federal & state employee subtraction (see Subtraction Code 39) OR
- You are claimed as a dependent on another taxpayer's return.
Line 10 Compute your Family VAGI: Enter your Social Security Number, name and Virginia adjusted gross income (VAGI) from Line 9, Form 760. For all married taxpayers, enter your spouse's Social Security Number and name, and then follow the instructions below for your filing status:
- Filing Status 2, Married Filing Jointly: If you entered the joint VAGI for both you and your spouse exactly as shown on Line 9, Form 760, of your joint return, you do not need to enter a separate VAGI for your spouse. If you entered only your portion of the VAGI from Line 9, Form 760, then enter your spouse's VAGI on your spouse's line. The sum of your VAGI and your spouse's VAGI should equal the joint VAGI amount shown on Line 9, Form 760.
Filing Status 3, Married Filing Separately: To
claim the credit, you are required to provide your
spouse's VAGI. If your spouse is:
- Filing a separate Virginia Form 760, enter the VAGI on Line 9, Form 760, from your spouse's return. Only one spouse may claim the Credit for Low-Income Individuals.
- Not required to file Form 760 (for example, if your spouse is a nonresident), compute your spouse's VAGI as if your spouse is required to file Form 760 resident return and enter the amount on your spouse's line.
Enter the Social Security Number and name of each dependent claimed as an exemption on your return and, if any of your dependents had income, enter the VAGI for each dependent. For Filing Status 3, Married Filing Separately, also enter the Social Security Number and name for each of your dependents not claimed as an exemption on your return and, if any of the dependents had income, enter the VAGI for each dependent.
Add the VAGI amounts and enter the total. This is your family VAGI.
Line 11 Determine if you Qualify for the Credit for Low-Income Individuals: Enter the number of family members listed in Line 10. If your family VAGI on Line 10 is equal to or less than the federal poverty amount for your family size, you are eligible to claim the Credit for Low-Income Individuals.
Line 12 Exemptions to Compute Credit: If you qualify for the Credit for Low-Income Individuals, enter the number of personal and dependent exemptions you reported on your Form 760. Do not include exemptions for age 65 or older and blind.
Line 13: Multiply Line 12 by $300. Enter the result on Line 13 and proceed to Line 14. If you do not qualify for the Credit for Low-Income Individuals but claimed an Earned Income Tax Credit on your federal return, enter $0 on Line 13 and proceed to Line 14.
Line 14: Enter the amount of Earned Income Tax Credit claimed on your federal return. If you did not claim an Earned Income Tax Credit on your federal return enter $0.
When a taxpayer using the married filing separately status computes the Virginia Earned Income Credit, the taxpayer must first determine his proportion of the earned income that was used to qualify for the federal Earned Income Tax Credit. That proportion must then be multiplied by the total Virginia Earned Income Credit, which is 20% of the federal Earned Income Tax Credit. The spouses may then claim their proportional shares of the credit on their separate returns.
Line 15: Multiply the amount on Line 14 by 20% (.20).
Line 16: Enter the greater of Line 13 or Line 15.
Line 17 Compute Your Credit: Compare the amount entered on Line 16, Schedule ADJ, to your tax liability on Line 19, Form 760. Enter the smaller amount on Line 17, Schedule ADJ and on Line 24, Form 760.
The Credit for Low-Income Individuals or Virginia Earned Income Credit is a nonrefundable credit. A nonrefundable credit cannot exceed your tax liability. If you claim any credits on Lines 25 - 27, Form 760, in addition to the Credit for Low-Income Individuals or Virginia Earned Income Credit, the sum of all nonrefundable credits claimed cannot exceed your tax liability on Line 19, Form 760.
Many low-income individuals who work and have earned income under $52,427 may also qualify for up to $6,143 in Federal Earned Income Credit when filing their federal tax return! See your federal instructions or call 1-800-829-3676 to order Pub. 596.
Addition to Tax, Penalty and Interest
Line 18 Addition to Tax
Use Form 760C to compute any addition to tax you may owe for underpayment of estimated taxes. Use Form 760F if at least 66 2/3% of your income is derived from farming, fishing and/or being a merchant seaman.
You will not owe an addition to tax if each payment is made on time and:
- you owe $150 or less in tax with your return.
- total withholding and timely estimated payments were at least 90% (66 2/3% for farmers, fishermen and merchant seamen) of your 2014 tax liability after nonrefundable credits or 100% of your 2013 tax liability after nonrefundable credits.
- you meet one of the exceptions computed on Form 760C or Form 760F. Attach Form 760C or 760F showing the computation.
If you do not meet the criteria shown above, visit www.tax.virginia.gov, or refer to Form 760C or Form 760F.
If you need to complete Form 760C or 760F, enter the amount of the addition to tax on this line. Those who file Form 760C or Form 760F should fill in the oval and attach a completed copy of Form 760C or Form 760F.
Line 19 Penalty
The due date for filing a calendar year return is May 1, and the automatic extension provisions apply to returns filed by November 1. Depending on when you file your return, you may be required to compute an extension penalty or a late filing penalty. For more information on due dates and penalty provisions, refer to When to File Your Return on Page 3 of these instructions.
Extension penalty: If you file your return within 6 months after the due date and the amount of tax due with the return is more than 10% of your total tax liability, you must compute an extension penalty on the balance of tax due. The extension penalty is applied at the rate of 2% per month or part of a month, from the due date through the date your return is filed. The maximum extension penalty is 12% of the tax due. Note: If you do not pay the tax in full when you file your return, a late payment penalty will be assessed at the rate of 6% per month or part of a month from the date the return is filed through the date the tax is paid, to a maximum of 30%. If you file your return during the extension period, but do not pay the tax due when you file your return, both the extension penalty and the late payment penalty may apply. The extension penalty will apply from the due date of the return through the date the return is filed and the late payment penalty will apply from the date the return is filed through the date of payment. To avoid paying the late payment penalty during the extension period, you must pay any tax owed when you file the return.
Late filing penalty: If you file your return more than 6 months after the due date, no extension provisions apply and you must compute a late filing penalty of 30% of the tax due with your return.
Line 20 Interest
If you filed a tax due return after the filing date, even if you had an extension, you are liable for interest on the tax due amount on Form 760, Line 29, from the due date to the date filed or postmarked. If you do not pay in full when you file the return, you may be subject to additional penalties and interest. To obtain the daily interest factor, please call (804) 367-8031 or contact your locality.
Line 21 Addition to Tax, Penalty and Interest
Add Lines 18-20. Enter here and on Form 760, Line 34.
Instructions for Schedule VAC
Part I - Virginia College Savings PlanSM (Virginia529SM) Contributions
You may contribute all or part of your income tax refund to one or more existing Virginia529 accounts by completing Schedule VAC. Any contribution(s) made will be deemed a contribution to your account(s) for the 2015 taxable year. Virginia529 is a 529 college savings plan that offers flexible, affordable, tax- advantaged savings for qualified higher education expenses through its four programs: Virginia529 prePAID, Virginia529 inVEST, CollegeAmerica, and CollegeWealth. For information on establishing accounts, visit Virginia529.com. You are not required to be the owner of record for an account in order to direct a contribution of all or part of your income tax refund.
When you specify a Virginia529 contribution amount on Schedule VAC, you authorize the Department to transfer payment and related information to Virginia529 to facilitate crediting contributions to the specified account(s) pursuant to their operating procedures. The information that will be exchanged is identified below:
- The contribution amounts and the program information contained on Schedule VAC.
- The taxpayer's name, Social Security number or tax identification number, address, and telephone number. Note: Information for both spouses will be provided if a joint return is filed.
For purposes of determining interest on an overpayment or refund, no interest will accrue after the Department transfers the payment to Virginia529. If Virginia529 is unable to match a contribution to an existing Virginia529 account, they shall contact the taxpayer and attempt to resolve the contribution and, if all efforts fail, Virginia529 will return the refund contribution to the taxpayer at the address on the return.
Part I, Section A
Enter the overpayment amount computed on your return less the amount credited to estimated tax for next year.
Part I, Section B
For each contribution, provide the Program Type Code (see codes below), beneficiary's last name, and account number. In addition, provide the routing number if you are making a contribution to a CollegeAmerica account. Contact your financial advisor to obtain the proper account number and routing number for a CollegeAmerica account. For contributions to Virginia529 prePAID, Virginia529 inVEST, and CollegeWealth..accounts, use your Virginia529 account number for each.
Program Type Codes:
1 = Virginia529 inVEST
2 = Virginia529 prePAID
3 = CollegeWealth
4 = CollegeAmerica
If contributing to more than 5 accounts, use the supplemental schedule, Schedule VACS, to provide the information for additional accounts.
Part II - Other Voluntary Contributions
Complete this section to contribute to one or more other voluntary contribution organizations listed in the income tax instructions.
For information on these organizations, see Page 29.
Line 1 Enter the overpayment amount computed on your return less the amount credited to estimated tax for next year and the amount of Virginia529 contributions from Part I.
Section B - Voluntary Contributions from your refund
Lines 2 - 4 You may voluntarily donate all or part of your tax refund to one or more qualifying organizations. Enter the contribution code(s) and amount(s) you are donating in the boxes. If you want to donate to more than 3 organizations, enter "00" and the total amount donated to the organizations on Line 2. Attach a schedule showing the organization code, name and amount donated to each.
|60||Virginia Nongame & Endangered Wildlife Program|
Democratic Political Party
Republican Political Party
U.S. Olympic Committee
Virginia Housing Program
|65||Department for Aging and Rehabilitative Services (Elderly & Disabled Transportation Fund)|
Community Policing Fund
Virginia Arts Foundation
|68||Open Space Recreation & Conservation Fund|
Historic Resources Fund
Children of America Finding Hope, Inc.
Virginia War Memorial Educational Foundation & National D-Day Memorial Foundation
Virginia Federation of Humane Societies
Virginia Tuition Assistance Grant Fund
Spay and Neuter Fund
Virginia Cancer Centers
Martin Luther King, Jr. Living History andPublic Policy Center
Celebrating Special Children, Inc.
Lines 5 - 7 Use this section if you wish to contribute to one or more Library Foundations. If you want to donate to more than 3 organizations, enter code "999999" and the total amount donated to the organizations on Line 5. Attach a schedule showing the organization code, name and amount donated to each.
Public School and Library Foundations - enter the 6-digit code from the lists starting on Page 33.
Section C Voluntary Contributions to be made from your refund OR tax payment
Lines 8 - 10 You may make a payment to the following organizations even if you owe a tax balance or if you wish to donate more than your expected refund.
If you want to donate to more than 3 organizations, enter code "00" and the total amount donated to the organizations on Line 8. Attach a schedule showing the organization code, name and amount donated to each.
|71||Chesapeake Bay Restoration Fund|
|72||Family & Children's Trust Fund (FACT)|
|73||Virginia's State Forests Fund|
|74||Virginia's Uninsured Medical Catastrophe Fund|
|81||Home Energy Assistance Fund|
|92||Virginia Military Family Relief Fund (MFRF)|
Lines 11 - 13 You may contribute to Public School Foundations even if you owe a tax balance or if you wish to donate more than your expected refund. If you want to donate to more than 3 organizations, enter code "999999" and the total amount donated to the organizations on Line 11. Attach a schedule showing the organization code, name and amount donated to each.
Public School and Library Foundations - enter the 6-digit code from the lists starting on Page 33.
Section D, Line 14 Total Voluntary Contributions
Enter the total of Lines 2 - 13. Enter this amount on Line 33 of Form 760.
Donate to the General Fund by writing a check to the State Treasurer and designating it as a donation to the Commonwealth's General Fund. You must attach your payment to Form GFD. Visit www.tax.virginia.gov or call (804) 367-8031 to obtain this form.
You can make a contribution directly to any of the organizations listed above. For more information about these groups, including how you can make a contribution, see Page 29.
Instructions for Virginia Schedule OSC
Credit for Tax Paid to Another State
Compute all credits for taxes paid to other states on Schedule OSC and enter the total credit claimed on Line 25 of Form 760.
Generally, Virginia will allow taxpayers filing resident individual income tax returns to claim credit for income tax paid as a nonresident to another state on earned or business income derived from sources outside Virginia or any gain (if included in federal adjusted gross income) on the sale of a capital asset outside Virginia, provided that the income is taxed by Virginia as well as the other state.
If you are a resident of Virginia and the income is from Arizona, District of Columbia, California or Oregon, the credit will usually be allowed on the nonresident income tax return of the other state and should not be claimed on the Virginia resident return.
See Va. Code § 58.1-332 for more information on credits for taxes paid to other states.
Attach a complete copy of Schedule OSC and all other states' returns to Form 760. The credit must be computed separately for each state. Schedule OSC is available on the Department's website at www.tax.virginia.gov or by calling (804) 440-2541.
Border State Method You may qualify for a special computation if you are required to file a return with Virginia and only one other state provided that other state is Kentucky, Maryland, North Carolina or West Virginia. The income from the border state must consist solely of wages and salaries or business income from federal Schedule C, and your Virginia taxable income must be at least equal to the taxable income shown on the other state's return. If you meet all of these qualifications, fill in the border state oval and enter "100.0" in the Income Percentage field.
Line 1 Filing Status
Enter the number listed below to identify the filing status claimed on the other state's tax return.
- Married Filing Jointly
- Married Filing Separately
- Unified (Composite Nonresident Return)
Line 2 Claiming Credit
Enter the number listed below to identify the person claiming the credit.
- You and Spouse
Line 3 Qualifying Taxable Income
Enter the total taxable income from all of the following categories that apply to you to the extent that this income was taxed by the other state:
- Earned or business income derived from sources outside Virginia that is subject to tax by Virginia as well as another state;
- Gain from the sale of a principal residence outside Virginia that was included in your federal adjusted gross income;
- Gain from the sale of any capital asset not used in a trade or business; and
- Income on which corporation income tax was paid to another state (one that does not recognize the federal S Corporation election), by an individual shareholder of an S Corporation. Attach a statement from the S Corporation.
In some states, the tax is computed on total taxable income (from all sources) and then reduced by an allocation percentage. In these cases, you must multiply the total taxable income shown on the other state's return by the allocation percentage to determine the amount of income to enter on this line.
Line 4 Virginia Taxable Income
Enter the amount of Virginia taxable income from Line 16 of Virginia Form 760. If you filed separately in the other state, but are filing jointly in Virginia, enter only the Virginia taxable income attributable to the filer whose income was taxed by the other state.
Line 5 Qualifying Tax Liability
Enter the amount of tax liability reflected on the return you filed with the other state.
Line 6 Identify the State
Enter the 2 character postal abbreviation for the other state.
Line 7 Virginia Income Tax
Enter the amount of Virginia income tax from Line 19 of Virginia Form 760. If you filed separately in the other state, but are filing jointly in Virginia, enter the Virginia income tax due on the amount of Virginia Taxable Income reported on Line 16. Use the tax tables or the tax date schedule to determine the amount of tax.
Line 8 Income Percentage
Divide the amount of Qualifying Taxable Income by the Virginia Taxable Income. Round the number to one decimal place. The income percentage cannot exceed 100%.
Line 9 Virginia Ratio
Multiply the amount of Virginia income tax by the income percentage.
Line 10 Credit
Enter the lesser of qualifying tax liability or Virginia ratio. Enter the total credit claimed on Line 25 of Form 760.
If claiming more than one credit, continue to Line 11 of Schedule OSC and enter the total of all credits for taxes paid to other states on Line 25 of Form 760.
Note: The sum of all nonrefundable credits claimed cannot exceed your tax liability as shown on Line 19 of Form 760. Nonrefundable credits include the Tax Credit for Low-Income Individuals and Credit for Tax Paid to Another State.
About Virginia Schedule CR
Complete Schedule CR and attach it to your return to claim any credits that do not appear on Form 760 or Schedule ADJ. Enter the amount from Section 5, Part 1, Line 1A of Schedule CR on Line 27 of Virginia Form 760. Required attachments are listed on Schedule CR. The credits that can be claimed against individual income tax and are reported on Virginia Schedule CR are listed below. For more information, call (804) 367-8031 or visit the Department's website at www.tax.virginia.gov.
- Trust Beneficiary Accumulation Distribution Tax Credit
- Enterprise Zone Act Tax Credit
- Neighborhood Assistance Act Tax Credit
- Recyclable Materials Processing Equipment Tax Credit
- Conservation Tillage Equipment Tax Credit
- Precision Fertilizer and Pesticide Application Equipment Tax Credit
- Rent Reduction Program Tax Credit
- Vehicle Emissions Testing Equipment and Clean-Fuel Vehicle Tax Credit
- Major Business Facility Tax Credit
- Foreign Source Retirement Income Tax Credit
- Historic Rehabilitation Tax Credit
- Day-Care Facility Investment Tax Credit
- Low-Income Housing Tax Credit
- Qualified Equity and Subordinated Debt Investments Tax Credit
- Worker Retraining Tax Credit
- Waste Motor Oil Burning Equipment Tax Credit
- Purchase of Long-Term Care Insurance Tax Credit
- Biodiesel and Green Diesel Fuels Tax Credit
- Livable Home Tax Credit (formerly Home Accessibility Features for the Disabled)
- Riparian Waterway Buffer Tax Credit
- Land Preservation Tax Credit
- Community of Opportunity Tax Credit
- Green Jobs Creation Tax Credit
- Farm Wineries and Vineyards Tax Credit
- International Trade Facility Tax Credit
- Port Volume Increase Tax Credit
- Barge and Rail Usage Tax Credit
- Research and Development Tax Credit
- Telework Expenses Tax Credit
- Education Improvement Scholarships Tax Credit
- Coalfield Employment Enhancement Tax Credit
- Virginia Coal Employment and Production Incentive Tax Credit
- Motion Picture Production Tax Credit
- Agricultural Best Management Practices Tax Credit
You may contribute to these organizations with your return or send your contributions directly to the organizations at the addresses provided. Following is a brief description of the services provided by the organizations eligible for voluntary contributions.
Virginia Nongame & Endangered Wildlife Program. This fund provides for research, management and conservation of nongame wildlife species and habitats, including those listed by state or federal agencies as Endangered or Threatened and those identified as Species of Greatest Conservation Need in Virginia's Wildlife Action Plan.
|61 & 62||Political Party. Each taxpayer may contribute up to $25 to one of the following qualified parties: Democratic Party (code 61) or Republican Party (code 62).|
U.S. Olympic Committee. A leader in the global Olympic Movement, the U.S. Olympic Committee challenges thousands of youth and adults to live healthier, more productive lives through sport. By contributing a portion of your Virginia tax refund, you will 1) directly help prepare athletes for the Olympic and Paralympic Games, 2) fund community and elite sport programs all over the country and 3) advance the Olympic Movement, promoting excellence, cultural respect and peace internationally. Your donation will accomplish amazing things! Thank you, and visit us online at www.teamusa.org.
|64||Virginia Housing Program. Supports locally-based
organizations providing housing assistance to the
low-income elderly, persons with mental or physical
disabilities and the homeless in need of emergency,
transitional or permanent housing.
Department for Aging and Rehabilitative Services. Provides funding to local agencies to improve or expand transportation for elderly or disabled Virginians who cannot drive or use public transportation. Services include transportation for jobs, medical appointments and other essential activities.
Community Policing Fund. Contributions are used to provide grants to local law enforcement agencies in Virginia for the purchase of equipment or the support of services related to community policing. The fund supports work that builds local partnerships and problem-solving relationships between local law enforcement agencies and their communities.
Virginia Arts Foundation. Supports local artists, arts groups and schools in every city and county in Virginia.
Open Space Recreation and Conservation Fund. These funds are used by the Department of Conservation and Recreation to acquire land for recreational purposes and preserve natural areas; to develop, maintain and improve state parks and state park facilities and to provide matching recreational grants to localities.
Chesapeake Bay Restoration Fund. More than half of Virginia's lands drain into the Chesapeake Bay. This fund is used to help meet needs identified in the state's clean up plan for the Bay and the waters that flow into it.
Family and Children's Trust Fund. Contributions support the prevention and treatment of family violence in local communities and through statewide public awareness projects and activities. Family violence includes child abuse and neglect, domestic violence, dating violence, sexual assault, and elder abuse and neglect.
Virginia's State Forests Fund. State Forests are managed to sustain multiple natural resources and values [benefits]. Conservation practices protect wetlands, enhance critical wildlife habitat and preserve unique natural areas for biodiversity and provide long-term applied research for restoration and reforestation of native species.
Demonstration areas provide private forest landowners with practical, effective solutions to resource management challenges. Recreation opportunities and conservation educational programs are available statewide in all seasons to any age or experience level. State Forests are open to the public without fee for hiking, bird watching and nature observation. Horseback riding, mountain bike riding, fishing, hunting and trapping are allowed on certain state forests with a use permit.
Virginia's Uninsured Medical Catastrophe Fund. Assists with medical expenses of Virginia residents who face a life-threatening medical catastrophe.
Historic Resources Fund Supports preservation of historic landmarks and historic preservation projects.
Children of America Finding Hope, Inc. Uses proven strategies and programs to meet emotional and physical needs of children who are disadvantaged, runaways, in crisis and delinquent by providing hope in a tangible form regardless of religion, race, gender, or socioeconomic status.
Home Energy Assistance Fund Supports the provision of heating, cooling, energy crisis assistance and weatherization services for low- income families.
Virginia War Memorial Educational Foundation and National D-Day Memorial Foundation Contributions will be equally divided between these two organizations. The following is a description of the organizations:
Virginia War Memorial Educational Foundation The Memorial honors the nearly 12,000 Virginians who have given the ultimate sacrifice in service to our Nation in World War II, Korea, Vietnam, the Persian Gulf and the Global War on Terrorism, and all military veterans. The Memorial produces award-winning films and videos that are distributed free of charge to all public and private middle and high schools statewide and offers student and teacher seminars. The Memorial also hosts events and ceremonies and is home to military-related exhibits that are free and open to the public daily.
National D-Day Memorial Foundation Exists to honor the valor, fidelity and sacrifice of the Allied Forces on D-Day, June 6, 1944. It also exists to educate – ensuring that the D-Day legacy remains clear, meaningful and accessible to present and future generations.
Virginia Federation of Humane Societies Founded in 1959, the Virginia Federation of Humane Societies (VFHS) leads an alliance committed to ending the unnecessary euthanasia of cats and dogs in Virginia shelters. VFHS members include leaders from public & private shelters, rescue groups, veterinarians, animal control officers and citizen advocates. Programs include support for local animal welfare organizations, advocating for humane laws for all animals, training for animal welfare professionals and advocates, and Spay VA which provides pet owners access to convenient and affordable spay/neuter services. Your contribution to VFHS ensures a brighter future for Virginia's animals and their caregivers.
|85||Virginia Tuition Assistance Grant Fund State
Council of Higher Education for Virginia (SCHEV)
Administers the Tuition Assistance Grant (TAG)
Program available to Virginia residents enrolled full
time in one of 34 Virginia private, non-profit colleges
or universities. Contributions support choice and
affordability for eligible undergraduate or graduate
degree-seeking students enrolled in participating
TAG institutions. Students apply at the college
financial aid office. For more information about
SCHEV or the TAG program, please visit www.schev.edu and click on "Financial Aid."
Spay and Neuter Fund All moneys contributed shall be paid to the Spay and Neuter Fund for use by localities in the Commonwealth for providing low-cost spay and neuter surgeries through direct provision or contract or each locality may make the funds available to any private, nonprofit sterilization program for dogs and cats in such locality. The Tax Commissioner shall determine annually the total amounts designated on all returns from each locality in the Commonwealth, based upon the locality that each filer who makes a voluntary contribution to the Fund lists as his permanent address. The State Treasurer shall pay the appropriate amount to each respective locality.
Virginia Cancer Centers Virginia is fortunate to have two National Cancer Institute-designated Cancer Centers to serve the people of the Commonwealth: the VCU Massey Cancer Center and the University of Virginia Cancer Center. These two Cancer Centers work together to deliver the leading edge in contemporary cancer care in a supportive and compassionate environment, and to change the future of cancer care through research. Your contribution will enable us to help cancer patients today, and those who will be cancer patients in the future.
Martin Luther King, Jr. Living History and Public Policy Center The Martin Luther King, Jr. Living History and Public Policy Center is the Commonwealth's permanent memorial to Dr. King as required by state law. It is a consortium of public and private institutions of higher education that continues the work and perpetuates the legacy of Dr. King throughout the state.
The Center offers, among other things: educational and cultural programs; public policy analysis of contemporary issues relative to the principles of Dr. King, scholarly research and publications; public and private undergraduate and graduate programs interfacing; support of the state's Standards of Quality and of K-12 academic institutions; and community outreach and service activities.
Virginia Military Family Relief Fund (MFRF) In 2006, with support from the Virginia Legislature, Governor Tim Kaine established the Military Family Relief Fund (MFRF). This is a quick response grant program to assist military and Family members of the Virginia National Guard and the United States Reserve Components who are residents of Virginia, and, who are called to active duty for periods in excess of 90 days in support of Operation Enduring Freedom and Operation Iraqi Freedom and up to 180 days after their return. The Military Family Relief Fund assists military families with urgent or emergency needs relating to living expenses including but not limited to food, housing, utilities and medical services. Each need is considered on its own merit.
Celebrating Special Children, Inc. - To assist individuals with disabilities in realizing their fullest potential, Celebrating Special Children, Inc. provides online resource information in an easy to use format for individuals with disabilities, family members, caregivers and service providers. Cradle to older adult resource information is made available from a wide variety of providers at both the state and local level. Resource information listings include private for profit, not-for-profit and government agencies. All listings include a contact telephone number and web address where available. In addition to the resource information database, Celebrating Special Children also publishes original articles on a variety of topics of interest to the disability community. Celebrating Special Children makes information available at no charge to the user.