Attention, Virginia taxpayers!

You probably need to make some extra room in your bank accounts.  The Virginia Department of Taxation (“the Department”) will soon begin issuing rebates to eligible Virginia taxpayers.

Why is Virginia Doing This?

This taxpayer-friendly gesture is the result of legislation passed by the Virginia General Assembly earlier in 2022 with respect to the 2021 tax filings of Virginia individual taxpayers.

Who Will Get One?

To be eligible to receive this rebate, a taxpayer must have a tax liability on a 2021 Virginia individual income tax return filed by November 1, 2022.  This includes nonresidents who filed Form 763.

How Much Can I Get?

The rebates will be for up to $250 for eligible single and married-filing-separately taxpayers, and up to $500 for those eligible taxpayers who filed jointly.

In determining the amount of the rebate to be issued, the 2021 liability serves as the starting point in the calculation.  This liability is reduced by credits reported on the return (e.g., credit for taxes paid to other states, low-income credit, and credits listed on Schedule CR).  Then, from the greater of the derived amount or $250 (or $500), the Department will satisfy any debts owed by the taxpayer to the Department or other government agencies.  The Department will issue the remainder as the rebate.

When Will I Get It?

The Department is using a “first filed, first issued” system in issuing the rebates.   Accordingly, the earlier you filed your 2021 Virginia individual income tax return, the earlier your rebate should be issued.  The current goal is to issue rebates by October 17th for returns filed by September 5th.  Ultimately, for all returns filed by November 1st, the Department must issue rebates by March 1, 2023.

How Will It Be Sent to Me?

The Department will issue a check or send the rebate via direct deposit.  If you received a 2021 refund by direct deposit, then the Department will most likely issue your rebate to you by direct deposit as well.

Where Can I Find More Information?

The Department’s website has a page dedicated to this topic, which can be reached at the following link:

https://www.tax.virginia.gov/rebate

Moreover, the Department has set up a working page where you can check your eligibility for a rebate.   All that is required is entry of your Social Security number and zip code at the following site:

https://www.individual.tax.virginia.gov/IOP/#/rebate/rebateStatus

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