Source: https://www.esmarttax.com/tax-forms/virginia-form-760py-instructions/
Timestamp: 2018-01-21 08:48:19
Document Index: 486007900

Matched Legal Cases: ['§ 58', 'art 1', 'art 1', 'art 1', 'art 1', 'art 1', 'art 1', 'art 1', 'art 2', 'art 1', 'art 1', 'art 2', 'art 2', 'art 3']

Virginia Form 760Py Instructions
First-Time Home Buyer Savings Accounts: Individuals may designate an account with a financial institution as a first-time home buyer savings account. Distributions from such accounts must be used solely for paying or reimbursing the down payment and allowable closing costs for the purchase of a single-family residence in Virginia. An individual may subtract any income attributable to such account that was taxed as interest, capital gains, or other income for federal income tax purposes, to the extent it was included in such individual's federal adjusted gross income. However, if funds are withdrawn from the account for purposes other than to pay eligible costs, any subtractions previously taken would be subject to recapture.
Education Improvement Scholarships Tax Credits: For taxable years beginning on or after January 1, 2014, an income tax credit may be claimed for monetary or marketable securities donations made to scholarship foundations included on an approved list published by the Virginia Department of Education. The credit is equal to 65 percent of the monetary or marketable securities donation made to the scholarship foundation. Tax credits will be awarded to taxpayers on a first-come, first-served basis in accordance with procedures established by the Virginia Department of Education. For information on how to qualify, contact the Department of Education at 804-225- 3375.
Virginia College Savings PlanSM (Virginia529SM) Contributions: Beginning with the 2014 taxable year, individuals may contribute all or part of their income tax refunds to one or more Virginia529 accounts by completing Schedule VAC. Virginia529 is a 529 college savings plan that offers flexible, affordable, tax-advantaged savings for qualified higher education expenses through its four programs: Virginia529 prePAIDSM, Virginia529 inVESTSM, CollegeAmerica®, and CollegeWealth®. Nearly $53 billion in assets under management and 2.3 million accounts as of June 30, 2014 make Virginia529 the largest 529 plan in the country. For information on establishing accounts, visit Virginia529.com. See the instructions for Schedule VAC on Page 22 of this book for details on this contribution program.
Call or visit your Commissioner of the Revenue, Director of Finance or Director of Tax Administration. Check the list beginning on Page 41 for contact information.
To make estimated tax payments, visit www.tax.virginia.gov or file Form 760ES.
If you file an amended federal return reflecting a change in your taxable income or any other amount that would affect the Virginia return, you must file an amended Virginia tax return within one year. If the Internal Revenue Service (IRS) provided documentation that acknowledges acceptance of your federal amended return, attach a copy to the Virginia amended return. In addition, if you file an amended return with any other state that results in a change that would affect your Virginia income tax, you must file an amended Virginia tax return within one year.
If the change reduces the tax, the Department by law may issue a refund only if the amended return is filed within:
To amend Form 760PY, complete a new Form 760PY (for the taxable year you are amending) using the corrected figures, as if it were the original return. Check the amended box in the Filing Information section of the return. Do not make any adjustments to the amended return to show that you received a refund or paid a balance due as a result of the original return.
If you filed an amended federal return, attach a copy of your federal Form 1040X or other claim form and supporting material to your amended Virginia return to substantiate the amendment. If amending your Virginia return for other reasons, attach a statement to explain why you are amending your return. Show any computations necessary to verify the adjustments you are making. Submit your check or money order with your return if you owe a balance due. Also, include additional Forms W-2, 1099 or VK-1 with your return if claiming more income tax withheld than what was claimed on your original return.
If your federal income tax return was adjusted by the (IRS) during the taxable year and the adjustment was not reported to the Department, an amended Virginia return must be filed with a copy of the federal adjustments attached within one year after the final determination of such federal change, correction or renegotiation. See "When to File" earlier in this section for additional information.
Although there is no express statutory provision for a separate Virginia net operating loss available for carryback or carryover, the amount of federal net operating loss is the starting point in computing the amount of deduction to be allowed on the Virginia return. Check the amended return box located on the front of Form 760PY, indicating that this is an amended return. Also, check the box indicating the return is the result of a net operating loss (NOL) carryback. Be sure to attach a complete copy of your federal amended return, if applicable.
General instructions for computing the NOL can be obtained from the Laws, Rules & Decisions section on the Department's website at www.tax.virginia.gov. Select the link for Virginia Tax Administrative Code (Regulations) and find 23VAC10-110- 80 and 23VAC10-110-81, located under Chapter 110, Individual Income Tax.
If your Virginia Adjusted Gross Income (VAGI) is at or above the threshold amount shown in the following table, you are required to file. VAGI is the Adjusted Gross Income on your federal return plus any Virginia additions, minus any Virginia subtractions. Information on Virginia additions and subtractions is included in the instructions, later in this booklet.
Single and your VAGI is less than...........$11,950
Married filing with your spouse on the same return and your combined VAGI is less than...................$23,900
Married filing separately (on separate forms) and your VAGI is less than..........$11,950
If you are not required to file, but you had Virginia income tax withheld or made estimated payments, you are entitled to a refund of the amount withheld or paid. You must file a return to get a refund. We periodically review and update the Department's records to make sure that we have correct return information. Sometimes, we have to contact taxpayers to confirm that they did not need to file for a given year. As a result, even if you do not need to file a return, you may receive an inquiry at a later date to verify your VAGI.
Every Virginia resident whose Virginia Adjusted Gross Income is at or above the minimum filing threshold must file. Any "federal area" such as a military or naval reservation, federal agency or federal administration that is inside the geographical boundaries of Virginia is considered a location in Virginia and nonactive duty residents of those areas are subject to Virginia income tax just like residents of any other location in the state.
You may be required to file as a resident in two states if you are an actual resident of one state and a domiciliary resident of another state (see definitions below). If you are in this situation, you may be able to take a credit on the return filed in the state of your legal domicile. Refer to the instructions for the Schedule OSC later in this booklet for more information on the credit for tax paid to another state.
*The spouse of a military service member may be exempt from Virginia individual income tax on income from services performed in Virginia if (i) the service member is present in Virginia in compliance with military orders; (ii) the spouse is in Virginia solely to be with the service member; and (iii) they both maintain domicile in another state that is the same for both spouses. For more information, see Tax Bulletin 09-10 and Tax Bulletin 10-1, available on the Department's website at www.tax.virginia.gov.
Virginia residents who move out of Virginia during the taxable year and become domiciliary residents of another state are part- year residents, provided they do not move back to Virginia for at least 6 months.
The distinction between full-year and part-year residents is important in deciding which form to file and what income is taxable in Virginia. To compute VAGI and determine if VAGI meets the minimum filing threshold, part-year residents who file Form 760PY are allowed a subtraction from federal adjusted gross income equal to the amount of income attributable to residence outside Virginia.
If you are a part-year resident and you do not file the correct form, you will not compute the correct amount of tax. See "WHICH FORM TO FILE" below.
Generally, nonresidents with income from Virginia sources must file a Virginia return if their income is at or above the filing threshold. Nonresidents who earn salaries and wages in Virginia and pay tax on those salaries and wages to the District of Columbia, Kentucky, Maryland, Pennsylvania or West Virginia are not required to file if they meet the criteria described in the previous section under "Exceptions for Certain Nonresidents." Residents of states other than those in "Exceptions for Certain Nonresidents" do not qualify for a filing exception.
The spouse of a military service member may be exempt from Virginia individual income tax on income from services performed in Virginia if (i) the service member is present in Virginia in compliance with military orders; (ii) the spouse is in Virginia solely to be with the service member; and (iii) they both maintain the same non-Virginia domicile state. For more information, see Tax Bulletin 09-10 and Tax Bulletin 10-1 available on the Department's website at www.tax.virginia.gov.
Use Form 763 if you are in the military, domiciled in another state and have any other income that is from Virginia sources. Examples follow.
If a married couple lives in Virginia for the entire year, but is domiciled in Alabama, and has nonmilitary income from Virginia sources that is attributable to both spouses, the spouse on active duty must file Form 763, using Filing Status 4. Generally, the state of domicile will allow credit for tax paid to Virginia on the earned income that is taxed in both states.
If the nonmilitary spouse's domicile changed to Virginia during the year, Form 760PY must be filed, using Filing Status 3, to pay tax on income earned after becoming a Virginia resident.
To order, see Page 2.
Schedule 760PY ADJ - Required for:
Required to claim credit for tax paid to another state.
Required to claim most tax credits. For some Schedule CR credits other forms are required.
Required for income distribution, to prorate exemptions and report moving information.
Required to compute the addition to tax for individuals, estates and trusts.
Required to compute the addition to tax for farmers, fishermen and merchant seamen.
Used to make an extension payment.
If your taxable year is January 1, 2014 - December 31, 2014, your individual income tax return must be postmarked no later than May 1, 2015, to avoid late filing penalties and interest.
When filing by mail, the envelope must be postmarked by the due date. Put the correct postage on your envelope. If your return is sent back to you because of insufficient postage, you are liable for the penalties and interest if the postmark on the remailed return is after the due date. Tax returns or payments of taxes remitted by a commercial delivery service will be considered timely filed if received in an envelope or sealed container bearing a confirmation of shipment on or before midnight of the day the return or payment is due.
If your taxable year is not January 1 through December 31, your return must be postmarked by the 15th day of the 4th month following the close of your fiscal year.
When filing by paper, you should write "FISCAL YEAR FILER" across the top of page 1 of Form 760PY and attach a statement indicating the beginning and ending months of your 12-month fiscal year. If you file after the due date or do not pay the full amount due by the due date, you may have to pay penalties and interest.
If you are living or traveling outside the United States or Puerto Rico (including persons in the military or naval service on duty outside the United States and Puerto Rico), you must file your return by July 1, 2015. Be sure to check the appropriate box to the left of the name and address section.
Members of the Military - Members of the Armed Forces serving in a combat zone receive either the same individual income tax filing and payment extensions as those granted to them by the IRS, plus an additional 15 days, or a 1-year extension, whichever date is later. All extensions also apply to spouses of military personnel. Service families may wish, however, to file their individual income tax returns before the extended deadlines to receive refunds. Service members claiming this extension should write"Combat Zone"across the top of their tax returns and on the envelopes used to mail their returns. Such combat zone personnel should similarly write"Combat Zone"across the top of their correspondence, and on the envelope used to mail the correspondence, when responding to any notices issued by the Department regarding tax collection or examination. More information can be obtained from Tax Bulletin 05-5, available in the Laws,Rules,and Decisions Section of the Department's website at www.taxpolicy.virginia.gov.
Virginia law provides an automatic 6-month filing extension for income tax returns. No application for extension is required. The extension is for filing the return, not for payment of the tax; therefore, you must pay at least 90% of your tax by the due date, May 1 for calendar year filers. To make a payment of tentative tax, use Form 760IP.
If you file your return within 6 months after the due date but do not pay the tax due at the time of filing, the unpaid balance will be subject to a late payment penalty of 6% per month from the date of filing through the date of payment, up to a maximum of 30%. The late payment penalty will be assessed in addition to any extension penalty that may apply. The automatic extension provisions apply only to returns that are filed within 6 months from the due date. If you file your return more than 6 months after the due date, a late filing penalty of 30% will apply to the balance of tax due with your return.
Foreign Income Exclusion - If you qualify for the federal foreign income exclusion and have requested an extension of time for filing your federal return, you may apply for an extension of time to file your state return. You will be granted an extension for 30 days after the date you expect to qualify for the exclusion. You must apply by letter on or before the first day of the 7th month following the close of your taxable year and attach a copy of the approved federal extension to your return when you file.
You can efile your return online or mail your return.Visit www. tax.virginia.gov for information about using efile. To file by mail, use the mailing address listed beginning on Page 41 for the city or county where you live or last lived while a resident of Virginia. Returns can be filed directly with the Department.
You can pay by check, credit card or online. Make your check payable to the Treasurer of the city or county in which you reside. Make sure your social security number is on your check and make a notation that it is your 2014 income tax payment.
To pay by credit card, call 1-800-272-9829 (1 800 2 PAY TAX), or visit www.officialpayments.com. The jurisdiction code for Virginia is 1080. If you choose this option, fill in the box on Line 37 of Form 760PY, indicating this type of payment. You will be assessed a fee by the company processing the transaction.
Make an online payment from your checking or savings account for balance due returns using Web Payments at www.tax.virginia.gov.
If you have already filed your return with your Local Commissioner of the Revenue and did not indicate you were paying by credit card, call your Local Commissioner of the Revenue's office for the correct jurisdiction code prior to initiating your credit card payment. Phone numbers are listed beginning on Page 41.
Before issuing any refunds, Virginia law requires the Department to check for any outstanding debt with agencies of the Commonwealth of Virginia, Virginia local governments and the Virginia court system. If any such debt is found, regardless of the type of tax return filed, all or part of your refund may be withheld to help satisfy the debt and the processing of your return will be delayed.
If you itemized deductions, make sure you complete Line 11 through Line 13 on Form 760PY.
If you completed any of the forms or schedules listed below, you must attach copies to your Virginia return. Place these forms behind your Virginia return in the following order.
Be sure to include W-2, 1099 and VK-1 forms that indicate the same amount of Virginia income tax withheld as the amount you claim on your return.
Submit check with your return. If paying by credit card, please check the box on Line 37 of Form 760PY.
COMPUTE YOUR LOWEST TAX (TIP FOR MARRIED TAXPAYERS)
Since Virginia's individual income tax is imposed at graduated rates, a couple with income attributable to each spouse may find that by using Filing Status 2 (filing a joint return), their joint income is taxed at a higher rate than their separate taxable incomes would be. Filing Status 4 (married filing a combined return), is designed to adjust for this difference. When using Filing Status 4, tax is computed on each spouse's separate taxable income and then the two amounts of tax are added together to arrive at their total tax. As a general rule, when both spouses have income, Filing Status 4 will enable you to obtain the lowest combined tax provided that you assign deductions and dependents to each spouse so that the taxable income in each column on Form 760PY is as close to equal as possible.
If only one spouse has income or if one spouse's income would be reduced to zero (or less) after claiming personal exemptions and subtractions, use Filing Status 2 instead.
FORM 760PY LINE INSTRUCTIONS
NAME, ADDRESS & SOCIAL SECURITY NUMBER (SSN)
Name - Enter your complete name (including middle initial) and mailing address in the boxes provided. If filing a joint return, Filing Status 2 or 4, enter the complete name of your spouse. If you are married filing separate returns (Filing Status 3), DO NOT enter your spouse's name in the spouse name boxes. Instead enter your spouse's name on the Filing Status 3 line below the address box.
Deceased Taxpayers - Surviving Spouse filing Joint Return: As the surviving spouse, you are considered the primary taxpayer. To complete your return:
Address - Enter your street address. Do not enter a P. O. Box address unless mail is not delivered to your street address.
Social Security Number (SSN) - Be sure your Social Security Number is entered correctly. The Social Security Number entered in the "A: Your Social Security Number" box must be the number of the person whose name is shown first on the return.
Privacy Act: In compliance with the Privacy Act of 1974, disclosure of your Social Security Number is mandatory under Va. Code § 58.1-209. Your Social Security Number is used both as a means of identifying your income tax return and of verifying the identity of individuals for income tax refund purposes.
Dates of Residence - If filing a joint return, enter the dates you and your spouse lived in Virginia during 2014.
Locality Code - Enter the 3-digit Locality Code found beginning on Page 41. If you lived in more than one Virginia city or county or if you did not live in Virginia on January 1, 2015, enter the name of the city or county in Virginia in which you last lived. This is not always the same as the city or county of your mailing address.
Virginia Driver's License ID - Enter the last 5 digits of your Virginia Driver's License identification number. If filing a joint return, enter the last 5 digits of the Virginia Driver's License identification number of both spouses. This information is requested for taxpayer identification purposes.
Please check all boxes and complete all lines that apply.
Amended Return. Check this box if this is an amended return. For more information, please refer to the "Amended Return" section of these instructions. Also check this box if the reason for amending your return is the result of a net operating loss (NOL). For more information, please refer to the "Net Operating Loss" section of these instructions.
Dependent on Another's Return. Check the box if you can be claimed as a dependent on someone else's return. If you check this box and claim the Virginia standard deduction on Line 13, see "Exception: Dependent's Limited Standard Deduction" on Page 10. Your standard deduction may be limited.
Overseas on Due Date. Check this box if you were living or traveling outside the United States or Puerto Rico (including serving in the military or naval service), on May 1, 2015. File your return by July 1, 2015.
Qualifying Farmer, Fisherman or Merchant Seaman. Check this box if you are a self-employed farmer, fisherman or merchant seaman and at least 2/3 of your gross income is from those employments. This information is used to identify farmers, fishermen and merchant seamen subject to special rules for paying estimated tax. See "Addition to Tax For Underpayment of Tax" for details.
Earned Income Tax Credit Claimed on Federal Return If you claimed Earned Income Tax Credit on your 2014 federal return, enter the amount claimed.
Combined Social Security for You and Spouse reported as taxable income on Federal Return If you reported taxable Social Security income on your 2014 federal return, enter the combined amount. This is especially important if claiming Age Deduction.
In most cases, your filing status will be the same as the one you selected on your federal return.
Use this filing status if you claimed one of the following federal filing statuses on your federal return: Single, Head of Household, or Qualifying Widow(er). If you claimed the Head of Household filing status on your federal return, check the "Single" filing status box and the "Head of Household" box.
Filing Status 2 - Married, Filing Joint Return
You and your spouse may choose to file a joint return if (a) you computed your federal income tax liabilities together on a joint federal return, or (b) neither you nor your spouse was required to file a federal return. You may claim this filing status even if your spouse has no income. When filing a joint return, your spouse's exemption is included in the "You" column. Do not claim your spouse as a dependent.
If both spouses have income, filing a combined return (Filing Status 4) may result in a lower balance due or a TIPgreater refund than a joint return (Filing Status 2).
Filing Status 3 - Married, Filing Separate Return
If you and your spouse filed separate federal returns, you can file separate state tax returns or you can choose to file a combined return (Filing Status 4). Generally, if you filed a joint federal return and only one spouse is a Virginia resident, the Virginia resident must file a separate Virginia return unless both spouses elect to determine their joint Virginia taxable income as if they were both Virginia residents. When you file separate returns in Virginia, you must report your federal adjusted gross income, exemptions and deductions on your Virginia return as if you had filed separate federal returns. Federal rules must be applied to determine the exemptions and itemized deductions allowed when filing separate returns. If one spouse claims itemized deductions, the other spouse must also claim itemized deductions.
If the number of dependent exemptions or the amount of itemized deductions cannot be accounted for separately, they must be proportionately allocated between each spouse based on each spouse's income (e.g., federal adjusted gross income).
Be sure to enter your spouse's name on the line provided in the Filing Status section and your spouse's Social Security Number in the name and address section of the return.
Filing Status 4 - Married, Filing Separately on This Combined Return
Since Virginia's income tax is imposed at graduated rates, a couple with income attributable to each spouse may find that by using Filing Status 2, their joint income is taxed at a higher rate than their separate incomes would be. Filing Status 4 is designed to adjust for this difference. Filing Status 4 allows a couple to compute a combined tax by reporting income for each spouse separately and then allocating dependent exemptions and deductions as mutually agreed. Tax is computed on each spouse's separate taxable income and then the two amounts of tax are added together to determine their total tax.
Use Filing Status 2 instead of Filing Status 4 if only one spouse had income or if one spouse's income would be reduced to zero or less after claiming personal exemptions and subtractions.
Enter the number of exemptions you are allowed in the appropriate boxes. If filing a joint return (Filing Status 2), enter the number for both spouses combined in the boxes in Column A. Use the exemption information when completing Line 14.
Dependents Generally, you may claim the same number of dependent exemptions allowed on your federal return. If you are using Filing Status 3 or 4, see the Filing Status instructions in the previous section for the rules on claiming dependents. You may never claim less than a whole exemption. The same dependent may not be claimed on separate returns.
65 or Over To qualify for this additional personal exemption, you must have been age 65 or older on or before January 1, 2015.
Use the Correct Column: Enter numbers in Column A if you are using Filing Status 1, 2 or 3. Enter numbers in Columns A and B only if you are using Filing Status 4. When using Filing Status 4, make sure the information in Column A applies to the name and social security number listed first on the return. Column B is for your spouse.
Please be sure to provide this information. It is used to assist in the verification of taxpayer identity. If you are filing a joint return, enter your date of birth and your spouse's date of birth in the same order as your names and social security numbers.
The Virginia Schedule of Income must be completed before you make an entry on Line 1. Complete the Virginia Schedule of Income, Part 1, Lines 1 through 9, then enter the total amount of federal adjusted gross income on Line 1 as follows. The instructions for the Virginia Schedule of Income are on Page 13. Attach the completed Virginia Schedule of Income to your return.
Filing Status 1, 2 or 3
Enter the amount from Schedule of Income, Part 1, Line 7, Column A1, on Line 1, Column A.
Enter the amount from Schedule of Income, Part 1, Line 7, Column B1, on Line 1, Column B, and enter the amount from Line 7, Column A1, on Line 1, Column A. When using Filing Status 4, the total of Column A and Column B on Line 1 must equal the total federal adjusted gross income on your federal return.
Line 2 - Additions
If you reported any additions on Virginia Schedule 760PY ADJ, enter the total amount from Line 3 of Schedule 760PY ADJ.
Line 4 - Qualifying Age Deduction
Enter your birth date in the boxes above Line 1 on Page 1. If filing status 2, 3 or 4 enter birth date for both you and spouse.
If filing status 4, enter your age deduction on Line 4a, Column A and the deduction for spouse on Line 4b, Column B. Otherwise, claim Your Age Deduction on Line 4a, Column A and Spouse's on Line 4b, Column A.
If claiming an Age Deduction, see the Age Deduction instructions on Page 28 and complete the Age Deduction Worksheet on Page 30 in order to calculate the Qualifying Age Deduction.
Line 5 - Social Security Act and Equivalent Tier 1 Railroad Retirement Act Benefits
Enter Social Security and equivalent Tier 1 Railroad Retirement Act benefits reported as taxable income on your federal return and attributable to your period of residence in Virginia.
Do not include Tier 2 Railroad Retirement Benefits and Other Railroad Retirement and Railroad Unemployment Benefits. See instructions for Schedule 760PY ADJ to determine if these benefits can be included as other subtractions.
Line 6 - State Tax Refund or Overpayment Credit Reported as Income on Federal Return
Line 7 - Income Attributable to Your Period of Residence Outside Virginia
Enter the amount from the Virginia Schedule of Income, Part 1, Line 9, Column A3, in Column A. Enter the amount from Part 1, Line 9, Column B3, in Column B.
If you claim this subtraction, you cannot claim a credit for tax paid to another state on the same income.
Line 8 - Subtractions
If you reported any subtractions on Virginia Schedule 760PY ADJ, enter the total amount from Line 7 of Schedule 760PY ADJ.
Deduct Line 9 from Line 3 and enter the result.
If the amount on Line 10 is less than the amount shown below for your filing status, your Virginia income tax is $0.00 and you are entitled to a refund of any withholding or estimated tax paid.
Complete Lines 11 through 18 and enter "0.00" as your tax on Line 19, then
Complete Lines 20 - 38.
Filing Status Filing Threshold
1. Single...................................................$11,950
2. Married, filing jointly.............................$23,900
3. Married, filing separately.......................$11,950
4. Married, filing combined return*...........$23,900
Claiming Deductions When Filing a Combined Return: If you are filing a combined return (Filing Status 4), you can allocate deductions and dependents between spouses as you choose. As a general rule, you can lower your combined tax by assigning deductions and dependents to each spouse so that the taxable incomes in Columns A and B are as close to equal as possible. The deductions and dependents which can be allocated are on Lines 13, 14 and 15.
Line 11 - Itemized Deductions
Enter the total itemized deductions claimed on federal Schedule A (or the FDC Worksheet if you have an addition or subtraction due to Fixed Date Conformity) paid while a resident of Virginia.
You must claim the same type of deductions (standard or itemized) on the Virginia return as claimed on your federal return. If a joint federal return was filed and you are filing separate returns in Virginia (Filing Status 3), and claiming itemized deductions, itemized deductions that cannot be accounted for separately must be allocated proportionately between spouses based on each spouse's share of the federal adjusted gross income.
If you claimed itemized deductions on your federal income tax return, you must claim itemized deductions on your Virginia income tax return. Your allowable itemized deductions on Form 760PY are expenses claimed on federal Schedule A for which payment was made while you were a Virginia resident. State and local income tax claimed as an itemized deduction on your federal return is not allowed as a Virginia deduction. If you have an addition or subtraction due to Fixed Date Conformity, you must complete the FDC Worksheet to compute your Virginia itemized deductions. Attach a copy of your federal return, including Schedule A.
Line 12 - State and Local Income Tax
If claiming itemized deductions, enter the amount of state and local income tax allowed on your federal Schedule A that was paid while you were a resident of Virginia. Before making an entry on Line 12, check to see if your total itemized deductions were limited on your federal return. Your deduction may be limited if your federal adjusted gross income is more than $305,050 if married filing jointly or qualifying widow(er), $279,650 if head of household, $254,200 if single, or $152,525 if married and filing a separate return. The amount of state and local income tax reported on federal Schedule A must be reduced proportionately to reflect any reduction in total itemized deductions. Complete the ITEMIZED DEDUCTIONS WORKSHEET if you are subject to the limitation. If you did not claim any state and local income tax on federal Schedule A, enter "0.00" on this line.
Line 13 - Virginia Deductions
If claiming itemized deductions, subtract Line 12 from Line 11. The copy of your federal income tax return attached to Form 760PY must include the Schedule A. If you are not claiming itemized deductions, enter the amount from Line 5 of the Standard Deductions Worksheet.
Standard Deductions Worksheet
1.Enter the federal adjusted gross income (Total Part 1, Line 9, Columns A1 and B1 from Schedule of Income). _____
2.Enter the income attributable to your period of Virginia residence (Total Part 1, Line 9, Columns A2 and B2 from Schedule of Income). _____
3.Divide the amount on Line 2 by the amount on Line 1 and report as a percentage, not to exceed 100%. Example: 0.3163 becomes 31.6%. _____
4.If using Filing Status 1, enter $3,000. If using Filing Status 2 or 4, enter $6,000. If using Filing Status 3, enter $3,000. _____
5.Multiply Line 3 by Line 4. Enter here and on Line 13, Form 760PY. _____
When using Filing Status 4, the standard deduction may be allocated between each spouse as you mutually agree. As a general rule, you can lower your combined tax by assigning deductions (Lines 13 and 15) and dependents (Line 14) to each spouse so that the taxable incomes in Columns A and B are as close to equal as possible.
Exception: Dependent's Limited Standard Deduction
If you could be claimed as a dependent on the federal income tax return of another taxpayer, your allowable standard deduction may not exceed the amount of your earned income. This rule applies to dependents of all ages, including children under age 19 and full- time students under 24 years old who are eligible to be claimed as a dependent on their parent's return.
Remember to check the box on the front of Form 760PY if you can be claimed as a dependent on another's return. Your maximum standard deduction is the lesser of EARNED INCOME; or
EXAMPLE: (Standard Deduction Limited): A person (claimed as a dependent on another's return) moved to Virginia on June 25, 2014. Before moving to Virginia he had unearned income of $5,000 in another state. While in Virginia he had interest income from a bank account (unearned income) of $4,200 and income from a summer job of $1,200 (earned income).
This person's limited standard deduction to be entered on Line 13 is $622.80 which should be rounded to $623.
Using the Standard Deductions Worksheet, the limited standard deduction is computed by multiplying the maximum limited standard deduction on Line 4, which is $1,200 of earned income, by the percentage on Line 5, which would be 51.9%. Line 4 is $1,200 because the $1,200 of earned income is less than the $3,000 standard deduction for a single taxpayer.
Line 14 - Exemption Amount
The total exemption amount is the prorated number of exemptions claimed, based on the portion of the year you resided in Virginia. Complete the Prorated Exemption Worksheet in Part 2 of the Virginia Schedule of Income to compute your allowable personal and dependent exemptions. Instructions for the Virginia Schedule of Income begin on Page 13.
Line 15 - Deductions
If you reported any deductions on Virginia Schedule 760PY ADJ, enter the total amount from Line 9 of Schedule 760PY ADJ.
Line 18 - Income Tax
If Line 17 exceeds the amount listed in the Tax Table included in these instructions, compute the tax from the Tax Rate Schedule for You on Line 18a and Spouse on Line 18b.
Line 19 - Total Tax
Add Line 18a and Line 18b, and enter the result.
Line 20(a) - YOUR Virginia Income Tax Withheld
Enter the amount of Virginia tax withheld from the W-2, 1099 and VK-1 form(s) for the person whose Social Security Number is in the "A: Your Social Security Number" box in the name and address section on Form 760PY. If you are using Filing Status 4, this must be the person whose income is reported in Column A.
Line 20(b) - SPOUSE'S Virginia Income Tax Withheld
Enter the amount of Virginia tax withheld from the W-2, 1099 and VK-1 form(s) for the person whose Social Security Number is in the "B: Spouse's Social Security Number" box in the name and address section on Form 760PY. If you are using Filing Status 4, this must be the person whose income is reported in Column B. If filing a separate return (Filing Status 3), do not enter your spouse's withholding.
Line 21 - Combined 2014 Estimated Tax Payments
Enter your total 2014 estimated Virginia income tax payments. If using Filing Status 2 or 4, enter the total payments made by you and your spouse, even if the payments were made using separate Form 760ES vouchers.
Line 22 - Income Tax Carryover from Prior Year
Enter amount of 2013 overpayment applied toward 2014 estimated tax.
Line 23 - Combined Extension Payments
Line 24 - Credit for Low-Income Individuals or Virginia Earned Income Credit
If your total family income does not exceed the federal poverty guidelines or you claimed the federal Earned Income Tax Credit, you may be eligible to claim this Credit for Low-Income Individuals or the Virginia Earned Income Credit.
If you are eligible, calculate these credits by completing Schedule 760PY ADJ, Lines 10 - 17. Enter the credit amount from Line 17 of Schedule 760PY ADJ on Line 24 of Form 760PY.
Line 25 - Credit for Tax Paid to Another State
If you are eligible, calculate the credit by completing Schedule OSC. Enter on Line 25 the credit amount from Schedule OSC, Line 21. Instructions for Schedule OSC are on Page 28.
Line 26 - Credit for Political Contributions
If you are claiming a Political Contributions Credit, enter the amount of the credit. The Political Contributions Credit is available to individuals who make contributions to candidates for state or local political office. The credit is 50% of the amount of the contribution, subject to a $25 limit for individuals and a $50 limit for married taxpayers filing jointly and cannot exceed your tax liability.
Complete Schedule CR and attach it to your return to claim the following tax credits. For some credits, other Virginia forms are also required. To order Schedule CR, Schedule CR Instructions and these other credit forms, see Page 2.
The following table lists all the credits that can be claimed against individual income tax. For more information, visit www.tax. virginia.gov.
Precision Fertilizer and Pesticide Application Equipment Tax Credit
Rent Reduction Program Tax Credit
Line 31 - Credit to Estimated Tax
Enter the amount of net overpayment from Line 30 to be credited to 2015 estimated tax in the respective columns.
Line 32 - Virginia College Savings PlanSM Contributions
If you would like to contribute some or all of your refund to one or more Virginia College Savings Plan accounts, enter the amount from Schedule VAC, Part I, Section B, Line 6.
Attach Form 760C or Form 760F (for Farmers, Fishermen or Merchant Seamen) if you computed the addition to tax and/ or if you are claiming one of the exceptions that voids the addition to tax.
The general tax rate is 6% in the following cities and counties in the Hampton Roads and Northern Virginia regions:
Visit www.tax.virginia.gov for more information. Enter the amount of Consumer Use Tax you owe on Form 760PY, or file Form CU-7.
Line 37 - Amount You Owe
If You Owe Tax on Line 29, add Line 29 and Line 36.
If Line 30 is an OVERPAYMENT and Line 36 is LARGER THAN Line 30, deduct Line 30 from Line 36.
Check - If you file your return locally, make your check payable to the Treasurer or Director of Finance of the city or county in which you reside; otherwise, make your check payable to the Department of Taxation. See the listing of localities beginning on Page 41. Make sure your Social Security Number is on your check and make a notation that it is your 2014 Virginia income tax payment. Submit your check with the return.
Credit Card - Call 1-800-272-9829 or visit www.officialpayments. com to pay by credit card. If you choose this option, check the box on Line 37 indicating this type of payment.
Online - Make an online payment from your checking or savings account for balance due returns using Web Payments at www.tax. virginia.gov.
If Line 30 is larger than Line 36, deduct Line 36 from Line 30 and enter the amount to be refunded.
You no longer have the option of requesting a paper refund check. If you do not complete the Direct Deposit section, you authorize the Department to issue you a Refund Debit Card.
Direct Deposit - Get your refund faster: Have your refund deposited directly into your bank account.
Fill in the bank account information and indicate whether the account number is for a checking or savings account.
Due to electronic banking rules, the Department will not allow direct deposits to or through foreign financial institutions. Attempting to use direct deposit to transfer funds electronically to a financial institution outside the territorial jurisdiction of the United States will significantly delay your refund. Visit www.tax. virginia.gov for details.
Check the box to indicate whether the account number is for a checking or savings account.
Bank Account Number: Enter your bank account number up to 17 digits. Do not enter hyphens, spaces or special symbols. Do not include the check number.
If you prefer to have your refund mailed to you, or if the destination of the funds is outside the territorial jurisdiction of the United States, do not complete the Direct Bank Deposit information.
Debit Card: The Commonwealth of Virginia no longer issues individual income tax refund checks. If you do not choose the direct deposit option for your refund and complete the applicable information on Form 760PY, the Department of Taxation will issue a debit card to you.
Check this box if you would like to give the Department authorization to discuss your return information with your tax preparer.
Electronic Form 1099-G
At the bottom of the return above the signature area, a check box is provided for you to indicate that you agree to receive your statement of refund (Form 1099-G) electronically instead of receiving a copy by mail. Form 1099-G/1099-INT is an informational statement issued by the Department in January of each year to report payments made or credited to taxpayers during the previous calendar year. The statement is also provided to those who receive interest payments of $10 or more during the year. These statements must be used in preparing federal returns by taxpayers who itemize deductions. Form 1099-G/1099-INT may be downloaded securely and printed from the Department's website, www.tax.virginia.gov.
Be sure to sign and date your return. If filing jointly, both spouses must sign the return. In so doing, you agree that filing jointly on this return makes you jointly and severally liable for the tax due and any refunds will be paid jointly.
If you paid someone to prepare your return, the preparer should provide contact information in the spaces provided.
Enter phone numbers in the space provided.
For returns completed by a paid preparer, the tax preparer should complete these fields. Use one of the codes below to complete the Filing Election Code field.
Part 1 - Income Distribution
Your return will not be accepted as complete unless Part 1 is completed. The purpose of the Income Distribution section of the Virginia Schedule of Income is to allocate the items that constitute federal adjusted gross income between Virginia and another state. Column 1, Lines 1 - 9, is an abridged version of federal Form 1040, 1040A or 1040EZ. Use Lines 1 - 3 to report all income. Use Line 5 to report all moving expenses included as adjustments to total income on the federal return. Use Line 6 to report all other adjustments to total income on the federal return. The sum of Line 7, Columns A1 and B1 must equal the federal adjusted gross income on your federal Form 1040, 1040A or 1040EZ. Base the allocation on where you were a resident when you received the income or paid the expense.
Note: If claiming Filing Status 4, complete both the "A" and "B" sections of the schedule. For all other filing statuses, complete only the "A" section. References to Column 1, 2 or 3 mean Column A1, A2 or A3 (or B1, B2 or B3).
Lines 1-3 - Income
Enter in Column 1 the total amount of wages as shown on federal Form 1040, 1040A or 1040EZ. In Column 2, enter the portion of wages attributable to your period of residence in Virginia. Enter the balance in Column 3.
Enter in Column 1 the total amount of interest and dividends as shown on federal Form 1040, 1040A or 1040EZ. In Column 2, enter the portion of interest and dividends attributable to your period of residence in Virginia. Enter the balance in Column 3.
Enter in Column 1 the net amount of other income as shown on federal Form 1040 or 1040A. This includes, but is not limited to, refunds of state and local income taxes, alimony received, business income, taxable pensions and capital or other gains and losses. In Column 2, enter the portion of other income attributable to your period of residence in Virginia. Enter the balance in Column 3.
Line 4 - Gross Income
Add Lines 1, 2 and 3 and enter the total here.
Line 5 - Adjustments: Moving Expenses
Line 6 - Other Adjustments to Income
Enter in Column 1 all adjustments to income as shown on federal Form 1040 or 1040A other than the moving expenses included on Schedule of Income, Line 5. This includes, but is not limited to, reimbursed employee business expenses, payments to an IRA and alimony paid. In Column 2, enter the portion of these adjustments that is attributable to your period of residence in Virginia. Enter in Column 3 the balance of these adjustments.
Line 7 - Adjusted Gross Income
Deduct the total of Line 5 and Line 6 from Line 4 and enter the balance here. The total of Column 1 must equal your federal adjusted gross income on your federal return. If using Filing Status 4, the total of Columns A1 and B1 must equal your federal adjusted gross income on federal Form 1040, 1040A or 1040EZ.
Enter the totals of Columns A1 and B1 on Line 1, Form 760PY (front). If the Schedule of Income and Adjustments is properly completed, the sum of Columns 2 and 3 will equal your federal adjusted gross income as shown in Column 1.
Line 8 - Net Fixed Date Conformity Modifications
Complete Schedule 760PY ADJ, Lines 2a and 6a, and enter the net amount on Line 8, Column 1 of the Schedule of Income. In Column 2, enter the portion attributable to your period of residence in Virginia. Enter the balance in Column 3.
Line 9 - Fixed Date Conformity FAGI
Combine Line 7 and Line 8 and enter the result. Enter the total of Line 9, Column 3, on Form 760PY, Line 7.
Note: If you are claiming the standard deduction on your return, the total of Line 9, Columns A1 and B1, must be entered on Line 1 of the Standard Deduction Worksheet on Page 10.
Part 2 - Prorated Exemption Worksheet
The prorated exemptions worksheet is used to reduce your personal and dependent exemptions to an amount which is proportional to the number of days you resided in Virginia during the taxable year. For example, if you are single, claim no dependents and moved to Virginia on July 1, your prorated Virginia personal exemption is computed as follows:
$930 (One personal exemption) X .504 (Ratio Schedule factor for July 1 move to Virginia) = $468.72 (Be sure to round to $469.00)
Each spouse must compute his or her own prorated personal exemptions based on the number of exemptions claimed in the Exemption Section. Use the separate exemption amounts for "you" and your "spouse" when completing Lines 1- 11 of the Prorated Exemption Worksheet in Part 2 of the Schedule of Income. Enter in the appropriate column on Form 760PY, Line 14. If claiming Filing Status 2, the combined exemption amount for you and spouse should be entered on Form 760PY, Line 14, column A.
If 100% of your federal adjusted gross income was earned while you were a Virginia resident, you do not have to prorate your personal exemptions. If you are married, each spouse's personal exemption is prorated separately based on that spouse's period of residence in Virginia. However, if 100% of either spouse's income is from Virginia sources, that spouse's personal exemption does not have to be prorated.
When using Filing Status 3, if the number of exemptions cannot be accounted for separately, they must be proportionately allocated between each spouse based upon each spouse's income.
Part 3 - Moving Information
If you moved into Virginia during the year, enter your prior state or foreign country of residence. If you are filing a joint return, also enter the prior state or foreign country of residence for your spouse.
If you moved out of Virginia during the year, enter the state or foreign country to which you moved. If you are filing a joint return, also enter the state or foreign country to which your spouse moved.
VIRGINIA SCHEDULE VAC
You may contribute all or part of your income tax refund to one or more existing Virginia529 accounts by completing Schedule VAC. Any contribution(s) made will be deemed a contribution to your account(s) for the 2015 taxable year. Virginia529 is a 529 college savings plan that offers flexible, affordable, tax-advantaged savings for qualified higher education expenses through its four programs: Virginia529 prePAID, Virginia529 inVEST, CollegeAmerica, and CollegeWealth. For information on establishing accounts, visit Virginia529.com. You are not required to be the owner of record for an account in order to direct a contribution of all or part of your income tax refund.
For each contribution, provide the Program Type Code (see codes below), beneficiary's last name, and account number. In addition, provide the routing number if you are making a contribution to a CollegeAmerica account. Contact your financial advisor to obtain the proper account number and routing number for a CollegeAmerica account. For contributions to Virginia529 prePAID, Virginia529 inVEST, and CollegeWealth.accounts, use your Virginia529 account number for each.
For information on these organizations, see Page 25.
Part A, Line 1
Enter the overpayment amount computed on your return less the amount credited to estimated tax for next year and the amount of Virginia529 contributions from Part I.
Part B - Voluntary Contributions from your refund
Lines 2 - 4 You may voluntarily donate all or part of your tax refund to one or more qualifying organizations. Enter the contribution code(s) and amount(s) you are donating in the boxes. If you want to donate to more than 3 organizations, enter code "00" and the total amount donated on LIne 2. Attach a schedule showing the organization code, name and amount donated to each.
67 Virginia Arts Foundation
78 Children of America Finding Hope, Inc.
82 Virginia War Memorial Educational Foundation & National D-Day Memorial Foundation
85 Virginia Tuition Assistance Grant Fund
88 Virginia Cancer Centers
93 Celebrating Special Children, Inc.
Lines 5 - 7 Complete Lines 5 - 7 if you wish to contribute to one or more Library Foundations. If you want to donate to more than 3 foundations, enter code "999999" and the total amount donated to foundations on Line 5, and attach a schedule showing the foundation number, name and amount donated to each.
Public School and Library Foundations - enter the 6-digit code from the lists starting on Page 23.
Part C Voluntary Contributions to be made from your refund OR tax payment
Lines 8 - 10 You may make a payment to the following organizations even if you owe a tax balance or if you wish to donate more than your expected refund. If you are donating to more than 3 organizations, enter the code code "00" in the first box on Line 8 and enter the total amount of all donations. Attach a separate page indicating the amount you wish to contribute to each organization.
Lines 11 - 13 You may contribute to Public School Foundations even if you owe a tax balance or if you wish to donate more than your expected refund. If you want to donate to more than 3 foundations, enter code "999999" and the total amount donated to foundations on Line 11, and attach a schedule showing the foundation number, name and amount donated to each.
Enter the total of Lines 2 - 13. Enter this amount on Line 33 of Form 760PY.
QUALIFYING AGE DEDUCTION
To compute your income based age deduction, use the Age 65 and Older Income based Age Deduction Worksheet on Page 30.
For 2014, taxpayers born on or before January 1, 1950, may qualify to claim an age deduction based on birth date, filing status and income. A taxpayer who qualifies to claim an age deduction may NOT also claim a disability income subtraction, credit for low- income individuals, or Virginia earned income credit.
If you or your spouse are not claiming a disability subtraction and you, or your spouse, are not claiming a Credit for Low-Income Individuals and your birth date is on or before January 1, 1950, please read the instructions below to determine if you qualify for an age deduction and the amount of the age deduction you may claim for 2014.
On or before January 1, 1939.
Your age deduction is not income based. You may claim an age deduction of $12,000. If you are married, each spouse born on or before January 1, 1939, may claim a $12,000 age deduction. For a spouse born after January 1, 1939, the age deduction for that spouse is based on the criteria below.
Multiply the age deduction by the ratio amount from the Ratio Schedule on Page 31 when computing the deduction amount. Enter the adjusted amount on Form 760PY, Line 4.
On or between January 2, 1939, and January 1, 1950
Your age deduction is based on your income. A taxpayer's income, for purposes of determining an income based age deduction, is the taxpayer's adjusted federal adjusted gross income or "AFAGI".
A taxpayer's AFAGI is the taxpayer's federal adjusted gross income, modified for any fixed date conformity adjustments, minus Social Security and Tier 1 Railroad Benefits.
To compute your income based age deduction, use the Age 65 and Older Income based Deduction Worksheet on Page 30.
A married taxpayer's income based age deduction is always determined using the married taxpayers' joint AFAGI. Regardless of whether you are filing jointly or separately, if you are married, your income based age deduction is determined on the combined income of both spouses.
In addition, if both spouses are claiming an income based age deduction, regardless of whether filing jointly or separately, the married taxpayers must compute a joint age deduction first and then allocate half the joint age deduction to each spouse.
CREDIT FOR TAX PAID TO ANOTHER STATE (Schedule OSC Instructions)
Compute all credits for taxes paid to other states on Schedule OSC and enter the total credit claimed on Line 24 of Form 760PY.
Special Computation Involving States Bordering Virginia
You qualify for a special computation of the out-of-state tax credit for income tax paid to a state which borders Virginia if:
You are required to file an individual income tax return with Virginia and only one other state.
The other state for which you are claiming a credit is one of the following states which borders Virginia: Kentucky, Maryland, North Carolina or West Virginia.
Your only income from the border state was earned income on wages and salaries (generally wages and salaries from which you received a Form W-2 or Form 1099, etc.) or business income reported on federal Schedule C.
Your Virginia taxable income is equal to or more than the taxable income on the tax return filed with the other state.
If you meet all of these qualifications, fill in the border state oval and enter "100.0" in the Income Percentage field.
Line 1 - Filing Status
Line 2 - Claiming Credit
Line 3 - Qualifying Taxable Income
To be qualified, the income on this line must be included as taxable income on both the Virginia return and the other state's return. Enter the total taxable income from all of the following that apply to you to the extent that this income was taxed by the other state:
Earned or business income derived from sources outside Virginia, which is subject to tax by Virginia as well as another state;
Gain from the sale of a principal residence outside Virginia which was included in federal adjusted gross income;
Corporation income tax paid to another state (one that does not recognize the federal S Corporation election), by an individual shareholder of an S Corporation. Attach a statement from the S Corporation.
In some states, the tax is computed on total taxable income (from all sources) and then reduced by an allocation percentage. In these cases, you must multiply the total taxable income shown on the other state's return by the allocation percentage in order to determine the amount of income to enter on this line.
If you were taxed as a nonresident of another state while a Virginia resident, enter the amount of qualifying taxable income that is derived from sources in the other state on Line 3. The only exception to this rule involves income on which you were taxed as a nonresident of Arizona, California, District of Columbia or Oregon.
If you are a Virginia resident who is a shareholder in an S Corporation that paid income tax to a state which imposes an income tax on the S Corporation and the fiscal year of the S Corporation ended while you were a Virginia resident, enter your share of the income subject to tax, as shown on the corporation income tax return filed with the other state.
Attach a copy of the return(s) from the other state(s).
Line 4 - Virginia Taxable Income Tax
Enter the Virginia taxable income from Line 17 of Form 760PY.
Line 5 - Qualifying Tax Owed to the Other State
Line 6 - Identify the State
Line 7 - Virginia Income Tax
Enter the amount from Form 760PY, Line 18. If you filed a joint return in the other state and you are using Filing Status 4 on your Virginia return, use the total from Columns A and B on Line 19.
Line 8 - Income Percentage
Divide Line 3 by Line 4. Compute the percentage to one decimal place. (For example, .3163 becomes 31.6%). If the result is greater than 100%, enter 100%. If the income from the other state is from Kentucky, Maryland, North Carolina or West Virginia, see "Special Computation Involving States Bordering Virginia" to determine the amount to enter on Line 8.
Line 9 - Virginia Ratio
Line 10 - Total
Enter the lesser of Line 5 or Line 9. Also enter on Form 760PY, Line 24.
Note: The sum of Schedule 760PY ADJ, Line 17 and Schedule OSC, Line 21 cannot exceed your tax liability. Lower the amount of this line if necessary to ensure sum does not exceed your tax liability.
Attach a complete copy of the state tax return filed in the state for which you claim the credit. Copies of Forms W-2, W-2G, and 1099-R are not sufficient to verify payment of the tax to the other state.
If claiming more than one credit, continue to Line 11 of Schedule OSC and enter the total of all credits for taxes paid to other states on Line 21 and on Line 24 of Form 760PY.
Note: The sum of all nonrefundable credits claimed cannot exceed your tax liability as shown on Line 19 of Form 760PY. Nonrefundable credits include the Tax Credit for Low-Income Individuals and Credit for Tax Paid to Another State.