Income Amount Required to File Taxes in Virginia

Taxpayers in the Commonwealth of Virginia receive automatic six-month extensions to file if they pay their tax liabilities by the original deadline.

In Virginia, the Virginia Department of Taxation is responsible for collecting income taxes from the Commonwealth's residents and residents who live in other states but earn income from Virginia employers. State taxes for 2010 are due May 2, 2011. The Virginia General Assembly requires taxpayers to pay interest on late tax payments, and the Virginia Department of Taxation may not waive the interest charges.

Filing Tax Thresholds

Residents in the Commonwealth and nonresidents are subject to the Department of Taxation's mandatory income tax filing requirements. The Department of Taxation has published its tax tables for the 2008 through 2012 tax years. For the 2010 tax year, a taxpayer who is single or married, but filing separately, must file Virginia tax returns if her state annual adjusted gross income is at least $11,650. Married taxpayers who file joint returns must file their tax returns if the couple's combined Virginia adjusted gross income is at least $23,300.

Residents and Nonresidents

Nonresidents are subject to the same income thresholds as taxpayers who reside in Virginia. Nonresidents must include their gross income from all sources. Both residents and nonresidents must include income from Virginia and outside of Virginia. Nonresidents cannot base their threshold determinations solely on the income they earned in Virginia. Residents and nonresidents are subject to interest and penalties for failing to file tax returns or underreporting their tax liabilities. Taxpayers are subject to late penalty assessments after six months of nonpayment.

Virginia Adjusted Gross Income

For filing purposes, the Department of Taxation considers Virginia adjusted gross income as federal adjusted gross income minus Virginia deductions or plus Virginia additions. The Commonwealth's adjusted gross income does not include deductions, childcare or dependent care credits, income deductions and personal exemptions.

Who Should File

Generally, even when a taxpayer does not meet the minimum threshold guidelines and is not required to file a Virginia income tax return, he may consider filing a return. Virginia does not provide returns when a taxpayer overpays tax liabilities through employer withholdings or qualify for earned income credits, unless the taxpayer files a return. Moreover, Virginia can pursue tax assessments against taxpayers who do not file returns but owe taxes, for an unlimited period. Generally, taxpayers who file taxes but owe additional taxes risk can receive tax assessment notices for up to three years. A taxpayers may use Virginia's free electronic filing systems to file his 760 form or may download forms and instructions.

Considerations

Since tax laws can frequently change, you should not use this information as a substitute for legal or tax advice. Seek advice through a certified accountant or tax attorney licensed to practice law in your jurisdiction.

References

• Virginia.gov: Virginia Department of Taxation: Individual FAQs
• Virginia.gov: Virginia Department of Taxation: Who Must File
• Virginia.gov: Virginia Department of Taxation: 2010 Virginia 760 Resident Individual Income Tax Booklet

Resources

• Virginia.gov: Virginia Department of Taxation: Download Individual Tax Forms