Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 112 - DECLARATION OF ESTIMATED INCOME TAX BY INDIVIDUALS › Section 23VAC10-112-43 - Failure by individual to pay estimated tax; exception

Current through Register Vol. 40, No. 24, July 15, 2024
A. Notwithstanding the provisions of
				23VAC10-112-40,
				23VAC10-112-41, and
				23VAC10-112-42, the addition to
				the tax with respect to any underpayment of any installment shall not be
				imposed if the total amount of all payments of estimated tax made on or before
				the last date prescribed for the payment of such installment equals or exceeds
				the amount which would be required to be paid on or before such date if the
				estimated tax were any of the following:
1.
				The tax shown on the return of the individual for the preceding taxable year,
				if a return showing a liability for tax was filed by the individual for the
				preceding taxable year and such preceding year was a taxable year of 12 months,
				or
2. An amount equal to the tax
				computed, at the rates applicable to the taxable year, on the basis of the
				taxpayer's status with respect to personal exemptions for the taxable year, but
				otherwise on the basis of the facts shown on his return for, and the law
				applicable to, the preceding taxable year, or
3. An amount equal to 90% (66-2/3% in the
				case of self-employed farmers or fishermen referred to in
				23VAC10-112-23 B of the tax for
				the taxable year computed by placing on an annualized basis the taxable income
				for the months in the taxable year ending before the month in which the
				installment is required to be paid. For purposes of this subsection the taxable
				income shall be placed on an annualized basis by:
a. Multiplying by 12 (or, in the case of a
				taxable year of less than 12 months, the number of months in the taxable year)
				the taxable income (computed without deduction of personal exemptions) for the
				months in the taxable year ending before the month in which the installment is
				required to be paid,
b. Dividing
				the resulting amount by the number of months in the taxable year ending before
				the month in which such installment date falls, and
c. Deducting from such amount the deductions
				for personal exemptions allowable for the taxable year (such personal
				exemptions being determined as of the last date prescribed for payment of the
				installment); or
4. An
				amount equal to 90% of the tax computed, at the rates applicable to the taxable
				year, on the basis of the actual taxable income for the months in the taxable
				year ending before the month in which the installment is required to be paid.
The periods involved, for a calendar year taxpayer, are
				  January 1 to April 30, January 1 to May 31, and January 1 to August 31.
				  Virginia taxable income for the applicable period is computed as follows: there
				  is subtracted from the federal adjusted gross income for the four, five or
				  eight month period, as applicable, (i) the Virginia subtractions specified in
				  § 58.1-322 of the Code of Virginia, (ii) the greater of itemized
				  deductions or standard deduction, (iii) child and dependent care deduction, and
				  (iv) the dollar amount of exemptions claimed on the return; and there is added
				  to federal adjusted gross income the Virginia additions specified in §
				  58.1-322 of the Code of Virginia. Virginia income tax is calculated on the
				  resulting Virginia taxable income. If the estimated tax installment relating to
				  the period is at least 90% of such tax, no addition to tax is required.