The amount of Virginia Tax Rebate varies for each individual, and it’s based on your total liability from last year. If you filed your taxes last year, you might qualify for a one-time tax rebate. The Virginia General Assembly approved up to $250 for individuals and $500 for couples who file jointly. It was part of a bipartisan budget plan that came together this year thanks to surplus revenue. But how many taxpayers can expect to get a refund depends on their unique circumstances.
The rebate is part of a budget deal passed by the General Assembly in June and is aimed at helping Virginians get some economic relief as the state faces persistently high inflation and high living costs.
How to Qualify for Virginia Tax Rebate?
To qualify for the tax rebate, Virginia residents must have a tax liability for last year and file their 2021 taxes by November 1. There’s an online lookup tool available to find out if you qualify. Just type in your social security number and zip code, and it will tell you if you’re eligible for the rebate.
If you’re eligible for a tax rebate, it will be sent to your bank account through direct deposit. It’ll take a few days to arrive if you received a tax refund through direct deposit this year and a week or more if you did not receive a tax refund.
You should be able to check your rebate status online using your social security number or individual tax identification number (ITIN). The VA Department of Taxation has also outlined what to expect if you aren’t sure whether you are eligible.
If you are eligible, the Virginia Department of Taxation will send you a refund in the form of a direct deposit or paper check. The money will be used to satisfy some existing debts, so if you owe money to the state or other government agencies and institutions, your rebate may be reduced or withheld until you pay off that debt.
The Virginia Department of Taxation began sending out these rebates on October 17, most of which were delivered by October 31. The department has boosted its call center resources in anticipation of an influx of calls from taxpayers who have questions about the rebates. The department has also sent out informational videos to explain the rebates and answer questions from taxpayers.
In addition, if you have any outstanding debts to the state or local government agency, your tax rebate will be used to satisfy those obligations before sending you the rest of your rebate payment. Then, you’ll receive a letter explaining how the money is used and the agency you owe to.
The commission is doing test runs over the weekend, but they plan to issue about 250,000 rebates per day starting Monday. Those payments will be delivered in two ways: by direct deposit to your bank account or by check in the mail.
What is the tax relief for 2023 in Virginia?
Virginia tax relief for 2023 is a rebate program that will give low-income households an additional refund on their federal taxes. It is part of a larger package of tax policies that the General Assembly passed this year, including the Earned Income Tax Credit (EITC) and state refunds for military retirees.
The tax relief for 2023 will be made available by March 1, 2023, and must be requested annually by submitting a form to the Commissioner of the Revenue. The applicant must provide proof of their assets as of December 31 and verification of their residence. The maximum net worth allowed for the applicant, spouse, and co-owners is $500,000 as of December 31.
Small businesses are a key driver of the economy in Virginia, with 95% of employers in the state having 50 or fewer employees. A new proposal by Governor Glenn Youngkin would provide a 10% Qualified Business Income (QBI) tax deduction for business owners.
Youngkin proposes this component of a $1 billion package for a two-year budget deal, but it will need to win approval in a divided General Assembly. The plan will include a reduction in the corporate tax rate and an increase in the standard deduction, which could help lower the income tax burden on Virginia families.
The plan is expected to attract strong support from the business community but is likely to face pushback from Democrats who are concerned about how it will impact their bottom line. Some are worried that a reduction in the corporate tax rate will lead to businesses shifting their tax filings to a more personal level, which could lead to a squeeze for business owners and their families.