Tommy Blackburn, CFP®, CPA, PFS
As a result of the 2017 Federal Tax Reform Law that took effect in 2018, many taxpayers took the standard deduction ($24,000 married filing jointly) because it was higher than the total of itemized deductions. For Virginia taxpayers, the state requires if you take the standard deduction on your Federal tax return, you must do the same on your Virginia return. Many people were better off at the Federal level taking the larger standard deduction ($24,000 increased from $12,000). An unintended consequence was that they were forced to take a smaller standard deduction on their Virginia return ($6,000 married filing jointly and $3,000 single).
Virginia taxpayers had an unfortunate surprise when they filed their 2018 state tax returns. They realized that they were paying more to Virginia and the state received a windfall from the 2017 Federal Tax Reform Law. In response, the Virginia General Assembly approved a flat dollar refund to all Virginia taxpayers and raised the Virginia standard deduction ($9,000 married filing jointly and $4,500 single).
You are eligible for a refund if:
- You filed a 2018 Virginia income tax return by July 1, 2019.
- You had a 2018 tax liability in Virginia (you paid income taxes to Virginia in 2018; please note, this is not the same as if you received a refund or owed money).
If eligible for a refund, taxpayers will receive up to $110 for individuals, and $220 for married filing jointly. All refund checks will be mailed by Tuesday, October 15th. Please be on the lookout for a refund check if you are eligible.
