If you live in Virginia, chances are you’ve heard about the 2019 Virginia Tax Relief Refund. If you’re not aware of it yet, you’ve come to the right place. On February 15, 2019, Virginia Governor Ralph Northam signed tax legislation that allocates $420 million in refunds to compensate taxpayers for higher state taxes that resulted from the federal Tax Cuts and Jobs Act (TCJA) of 2017. These refunds were scheduled for October, and many Virginia residents have already begun receiving them in the mail. So who gets these refunds? How much will you receive? Read below for everything you need to know.
How much will I receive?
- Individual taxpayers will receive up to $110
- Married couples who filed jointly will receive up to $220
How do I know if I’m eligible?
You’re eligible for the 2019 Tax Relief Refund if:
- You filed a 2018 Virginia individual resident, nonresident, or part-year resident income tax return by July 1, 2019
- You have a 2018 tax liability in Virginia
How are the refunds calculated?
The Virginia Department of Taxation first looks at your tax liability (or what you owe before credits), which is the amount that can be found on line 19 of your tax return.
Then, they deduct the amount of any Virginia credits you took, including:
- Credit for Low Income Individuals, or Virginia Earned Income Credit (on Schedule ADJ);
- Credit for Taxes Paid to Another State (on Form OSC),
- Other Virginia Tax Credits (from Schedule CR).
Next, they determine whether you’re subject to any debt setoff claims, such as any unpaid Virginia state taxes or debts to local governments, courts or other state agencies. If the department finds that you owe money, they will withhold and apply part or all of your refund to help pay the debts.
If part of the refund is allocated toward your debts, this will be detailed on the check stub. In the event that all of your tax relief refund was used to offset your debts, you will receive a letter explaining why.
This video by the Virginia Department of Taxation explains the process in detail.
When will I receive my refund?
Virginia’s Department of the Treasury has already begun issuing refunds by paper check. All checks will be mailed to taxpayers’ address of record by Tuesday, October 15, so you can expect to find your refund check in your mailbox soon after this date.
Didn’t receive a refund? Received a refund and just want to learn more? As always, feel free to reach out to the financial professionals at HBP. We’re eager to help you understand this new legislation. You can also find helpful resources on the Virginia Department of Taxation website or contact their customer service center at (804) 367-8031.