Virginia Department of Taxation LogoVirginia Department of Taxation

P.O. Box 1115
Richmond, Va. 23218-1115
January 2014 e-Alerts Digest
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Filing Reminder 

 

Individual Income Tax payments are due on or before January 15, 2014 from: 

  • Calendar year filers who need to make estimated tax payments toward their 2013 tax liability. 

Paying your estimated income tax using the Department's free online service is the fastest and most efficient way to make your payment. For information on determining whether estimated tax payment requirements apply, visit the Department's Individual Income Tax Estimated Payments web page.

 

New Customer Services Phone Menu 

 

The Department recently converted to a new phone system that will improve the customer experience for taxpayers and tax professionals. During the conversion, the phone menu options presented when a taxpayer calls Customer Services were also changed.

 

The main menu now offers callers the following options:

  • Check the status of your refund by phone.
  • Set up a payment plan for a tax bill.
  • Obtain contact information from the Department.
  • Listen to a description of the Department's online services.
  • Connect to a Customer Services Representative.

If the caller decides to speak with a Customer Services Representative, the representative can assist the caller with: 

  • Placing an order for tax forms
  • Information about their refund status
  • Inquiries about a bill issued by the Department
  • Specific questions regarding their tax account

To discuss information regarding your account, or general Individual Income Tax inquiries, call Customer Services at (804) 367-8031.

 

Advancement of Virginia's Fixed Date Conformity with the IRC   

 

Revenue Code (IRC) was advanced from Dec. 31, 2011, to Jan. 2, 2013, 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 of this writing, 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 taxable year 2013, taxpayers will be required to make adjustments to their Virginia returns that are not described in the instruction booklets. 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: Guidance for same-sex married couples filing Virginia income tax returns is available on the Department's website at www.tax.virginia.gov. See the "What's New" section for individuals.

 

Deduction for Prepaid Funeral, Medical, and Dental Insurance Premiums: Effective for taxable years beginning on and after Jan. 1, 2013, an individual age 66 or older with earned income of at least $20,000 for the year and federal adjusted gross income $30,000 or less for the year is allowed to deduct the amount he pays annually for (i) a prepaid funeral insurance policy that covers him or (ii) medical or dental insurance premiums for any person for whom individual tax filers may claim a deduction for such premiums under federal income tax laws.

 

Important Information for Military Spouses 

 

The Military Spouses Residency Relief Act provides an exemption from income and personal property taxes when certain criteria are met. Under this law, spouses of military service members do not automatically become liable for income and personal property taxes as Virginia residents in certain cases. Visit the Department's website for details.

 

Spouse Tax Adjustment Information for Joint Filers 

 

If you are married and file a joint return, you may qualify for a reduction in your net tax of as much as $259 by taking advantage of the Spouse Tax Adjustment (STA) on Form 760. To qualify you must use Filing Status 2, you and your spouse must have taxable income, and your combined income must be at least $3,000.

  

Virginia's income tax is imposed at graduated rates ranging from 2 percent to 5.75 percent. Married taxpayers filing separately automatically receive the benefit of a lower tax rate on each of their individual return and incomes. When filing jointly, couples must take the STA in order to receive the benefit of a lower tax rate.

 

The STA is calculated based on each spouse's portion of the joint Virginia Adjusted Gross Income (VAGI). To claim the STA, complete Form 760, Lines 16a and 16b, with your separate VAGI amounts. Verify that the total of the separate VAGIs equals the total on Form 760, Line 9. You must complete these lines and the separate VAGIs must equal the total on Line 9 or you will not receive the STA benefit when your return is processed.

 

An STA calculator is located on the Department's website to help you compute your STA amount.

 

Contact the Virginia Department of Taxation By Phone, Email, or Live Chat

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