reglab/statecodes huggingface dataset:
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 110 - INDIVIDUAL INCOME TAX › Section 23VAC10-110-230 - Accounting

Current through Register Vol. 40, No. 24, July 15, 2024
A. Accounting
				periods. An individual shall use the same taxable year for Virginia income tax
				purposes as is used for federal income tax purposes.
B. Change of accounting periods.
1. If an individual's taxable year is changed
				for federal income tax purposes, his taxable year for Virginia tax purposes
				shall be similarly changed.
2. If a
				change in an individual's taxable year results in a taxable period of less than
				twelve months, other than as the result of the taxpayer's death or termination
				of the taxable year under the provisions of § 58.1-313 of the Code of
				Virginia, such individual's Virginia taxable income shall be prorated as
				follows:
a. FAGI for the short taxable year
				(as computed prior to annualizing income for federal purposes) shall be
				adjusted by the additions, subtractions, and modifications set forth in
				23VAC10-110-140 through
				23VAC10-110-144 attributable to
				the short taxable year, with the exception of the standard deduction and
				personal exemptions which shall be prorated by multiplying such deduction and
				exemptions by the ratio of months in the short taxable year to 12 months. The
				result will be Virginia taxable income calculated as for a normal taxable
				year.
b. A tentative tax shall then
				be calculated based upon the annualized Virginia taxable income.
c. The actual tax shall be the tentative tax
				calculated pursuant to subdivision b above multiplied by the ratio of months in
				the short taxable year to 12 months.
The following example illustrates the computation of the
				  tax:
Example 1: Taxpayer A, a single individual has FAGI for short
				  taxable year 1983 of $20,000, claims one exemption, and utilizes the standard
				  deduction. Taxpayer also has $1,000 in interest income from U.S. obligations
				  which is exempt from federal but not state tax, and $2,000 of his FAGI
				  represents interest on U.S. Treasury obligations. He changed his taxable year,
				  pursuant to IRC § 442, to a 10 month period ending October 31, 1983. His
				  Virginia tax for the short taxable year is computed as follows:
FAGI
20,000.00
Plus:
Taxable interest
1,000.00
21,000.00
Less:
Exempt interest
2,000.00
Prorated personal exemption (600 x 10/12)
500.00
Standard deduction (2,000 x 10/12)
1,666.00
Taxable income
16,834.00
Annualized Virginia taxable income (16,834 x 12/10)
20,200.80
Tentative tax (on $20,200.80)
941.55
Actual tax (941.55 x 10/12)
784.30
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 110 - INDIVIDUAL INCOME TAX › Section 23VAC10-110-240 - Returns

Current through Register Vol. 40, No. 24, July 15, 2024
A. Generally. Every
				individual who is required to file a Virginia income tax return as set forth in
				subsection B below must file such return:
(1)
				on or before May 1 of the year following the close of the taxable year if the
				taxpayer uses a calendar year taxable year; or
(2) on or before the 15th day of the fourth
				month following the close of the taxable year if the taxpayer uses a fiscal
				year or other noncalendar taxable year. For example, a taxpayer whose taxable
				year is from January 1, 1983, to December 31, 1983, must file a return for
				taxable year 1983 on or before May 1, 1984, while a taxpayer whose taxable year
				is from July 1, 1983 to June 30, 1984 must file a return for that taxable year
				on or before October 15, 1984. (See
				23VAC10-20-30 for general filing
				requirements.)
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 110 - INDIVIDUAL INCOME TAX › Section 23VAC10-110-250 - Special cases in which nonresident not required to file Virginia return

Current through Register Vol. 40, No. 24, July 15, 2024
A. Commuters. A
				nonresident who did not maintain a place of abode in Virginia at any time
				during the taxable year and who commuted on a daily basis to employment in
				Virginia from his residence outside this state is not required to file a
				Virginia income tax return nor is he liable for the payment of tax to Virginia
				provided that all of the following conditions are met:
1. His only income from Virginia sources is
				from salaries and wages;
2. His
				salaries and wages from Virginia sources are subject to taxation by his state
				of residence;
3. Such taxpayer's
				state of residence imposes an income tax substantially similar to Virginia's,
				i.e., a net income tax;
4. The tax
				laws of the taxpayer's state of residence allow a credit against the tax
				liability of a Virginia resident to such state which is substantially similar
				to that accorded by Virginia as defined in
				23VAC10-110-220 through
				23VAC10-110-222; and
5. The tax laws of the taxpayer's state of
				residence accord Virginia residents commuting to work in such state on a daily
				basis the same relief from filing a return as provided herein for nonresidents
				of Virginia.
As of the adoption date of these regulations, residents of
				  Kentucky, Maryland, West Virginia and the District of Columbia may qualify for
				  a filing exclusion under the provisions of this section. Residents of these
				  states who have Virginia income tax withheld on salary and wages earned in
				  Virginia and who would otherwise qualify for the filing exclusion may obtain a
				  refund of Virginia tax withheld by filing Form 763S, Special Nonresident Claim
				  for Individual Income Tax.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 110 - INDIVIDUAL INCOME TAX › Section 23VAC10-110-280 - Nongame wildlife voluntary contribution

Current through Register Vol. 40, No. 24, July 15, 2024
Any individual who is eligible for a state income tax refund
				  may elect to designate that all or a portion of such refund be used for the
				  conservation and management of endangered species and other nongame wildlife.
				  Such election will reduce the amount of refund which the individual will
				  receive by an amount equal to that which is designated for contribution to the
				  nongame wildlife fund.
The amount designated for contribution pursuant to this
				  section must be in whole dollars, i.e., no fractional portions of a dollar may
				  be designated, unless the entire refund is contributed.
If a husband and wife elect to file separately on a combined
				  return (Filing Status #4), they may not designate separate contributions but
				  must instead designate a joint contribution as they mutually agree. For
				  purposes of this section, the term "non-game wildlife" shall include protected
				  wildlife, endangered and threatened wildlife, aquatic wildlife, specialized
				  habitat wildlife both terrestrial and aquatic, and mollusks, crustaceans, and
				  other invertebrates under the jurisdiction of the Board of Game and Inland
				  Fisheries.
Statutory Authority: §
											58.1-203 of the Code of Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 110 - INDIVIDUAL INCOME TAX › Section 23VAC10-110-310 - When, where and how taxes payable and collectible

Current through Register Vol. 40, No. 24, July 15, 2024
A. Generally. Every person who is liable for
				the income tax must pay the full amount of tax shown on the face of the return
				on or before the due date of such return. The tax should be paid to the
				treasurer of the city or county with whose commissioner of revenue the return
				is filed. Payment should be made by attaching a check to the face of the
				return. If any check is not paid by the bank on which it is drawn, the
				individual who tenders the check shall be liable for payment of the tax as
				though the tax had not been tendered. In addition, such taxpayer may become
				liable for penalties and interest for late payment as set forth in subsection
				C.
B. Return prior to close of
				taxable year. An individual may file a return and make full payment of the tax
				due for any taxable year prior to the close of such taxable year provided he is
				able to file a complete return. An early return may not be filed by any person
				who has not received a statement of wages and earnings from his employer, if
				applicable.
C. Penalties and
				interest.
1. Generally. Whenever any
				individual fails to make full payment of his actual tax liability on or before
				the due date of the return, he shall be liable for a penalty of 5% of the
				unpaid balance of the tax. This penalty shall be added to such unpaid balance
				and the total shall become immediately due and payable. If the taxpayer also
				fails to file a timely return, the penalty provided in 23VAC10-110-300 will
				also apply.
2. Exception where
				additional tax assessed by commissioner of revenue. The penalty provided for by
				this section shall not apply to any additional tax assessed by the commissioner
				of revenue of the city or county in which the taxpayer's return is filed
				pursuant to the provisions of § 58.1-305 of the Code of Virginia provided
				the return was made in good faith. However, interest on any such underpayment
				shall accrue from the due date of the return until paid.
For additional penalty for tendering bad check see
				  23VAC10-20-50.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 110 - INDIVIDUAL INCOME TAX › Section 23VAC10-110-320 - Individual refunds; crediting overpayment against estimated tax

Current through Register Vol. 40, No. 24, July 15, 2024
A. Refund of
				overpayments, generally. Any individual who overpays any tax, addition to the
				tax, interest or penalty imposed upon him shall be refunded the amount of such
				overpayment. A refund of overpayment shall be made for the following reasons:
(i) excessive withholding;
(ii) overestimating and overpaying estimated
				tax;
(iii) taxpayer error;
(iv) erroneous assessment of tax.
No refund for any overpayment of less than $1.00 shall be
				  made except on written application of the taxpayer. The filing of a return does
				  not constitute such a written application.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 110 - INDIVIDUAL INCOME TAX › Form - FORMS (23VAC10-110)

Current through Register Vol. 40, No. 24, July 15, 2024
Virginia Consumers Use Tax Return for Individuals, Form CU-7
				  (eff. 9/1993)
Virginia Individual Resident Income Tax Return (Booklet -
				  Instructions for Form 760 and 760S), Form 760 and 760S
Underpayment of Estimated Tax by Individuals, Estates and
				  Trusts, Form 760 C
Virginia Tentative Tax Return an Application for Extension of
				  Time to File Individual or Fiduciary Income Tax Return, Form 760E (eff.
				  8/1993)
Virginia Estimated Individual Income Tax Declaration and
				  Forms for Individuals, Estates and Trusts (Booklet - Instructions for Form
				  760ES), Form 760ES
Underpayment of Estimated Tax by Farmers and Fishermen, Form
				  760F
Virginia Part-Year Resident Individual Income Tax Return
				  (Booklet - Instructions for Form 760PY), Form 760PY
Short Individual Resident Income Tax Return (Booklet -
				  Instructions for Form 760 and 760S), Form 760S
Virginia Nonresident Individual Income Tax Return (Booklet -
				  Instructions for Form 763), Form 763
Virginia Special Nonresident Claim for Individual Income Tax
				  Withheld, Form 763-S
Credit Computation Schedule, Schedule CR, Form 760
Schedule for Computing the Age Deduction for Taxpayers 62 and
				  Over, Out-of-State Tax Credit or State of Residence and the Addition to Tax,
				  Penalty and Interest, Schedule NPY, Forms 760PY and 763
Enterprise Zone Credit, Form 301 (eff. 9/1992)
Computation of ACRS Subtraction, Form 302 (eff.
				  8/1992)
Application for Designation as a Qualified Business for the
				  Qualified Equity and Subordinated Debt Investments Tax Credit, Form QBA,
				  2601695, with instructions (eff. 1/2001)
Taxpayer Application for Qualified Equity and Subordinated
				  Debt Investments Tax Credit, Form EDC, 2601154, with instructions (eff.
				  7/2000)
Instructions
				  for Virginia Venture Capital Account Investment Fund Registration and
				  Certification Forms (rev. 2/2018)
Venture
				  Capital Account Investment Fund Registration Application, Form VEN-1 (rev.
				  1/2018)
Venture
				  Capital Account Investment Fund Confirmation Application, Form VEN-2
				  (rev.1/2018)
Venture
				  Capital Account Investment Fund Investor Information Report, Form VEN-3 (rev.
				  2/2018)
Statutory Authority: §
											58.1-203
					 of the Code of Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 112 - DECLARATION OF ESTIMATED INCOME TAX BY INDIVIDUALS › Section 23VAC10-112-10 - Definitions

Current through Register Vol. 40, No. 24, July 15, 2024
The following words and terms, when used in this chapter,
				  shall have the following meanings unless the context clearly indicates
				  otherwise:
"Commissioner" means the Tax Commissioner.
"Estimated tax" means the amount which an individual
				  reasonably estimates to be the income tax due for the taxable year, less the
				  amount estimated to be the sum of any credits allowable against the tax
				  (including, but not limited to, amounts withheld under § 58.1-460 et seq.
				  of the Code of Virginia).
"Taxable income" means an individual's federal adjusted
				  gross income for the taxable year with the additions, subtractions, deductions
				  and other modifications and adjustments set forth in § 58.1-322 of the
				  Code of Virginia and regulations promulgated thereunder.
"Taxable year" means an individual's taxable year for
				  federal income tax purposes.
"Virginia adjusted gross income" means federal adjusted
				  gross income (FAGI) for the taxable year plus the additions set forth in
				  subsection B of § 58.1-322 of the Code of Virginia, and less the
				  subtractions set forth in subsection C of § 58.1-322 of the Code of
				  Virginia and the additional deduction set forth under subdivision 2(b) of
				  subsection D of § 58.1-322 of the Code of Virginia.
Statutory Authority
§§ 58.1-203 and 58.1-490 of the Code of
					 Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 112 - DECLARATION OF ESTIMATED INCOME TAX BY INDIVIDUALS › Section 23VAC10-112-20 - Declarations of estimated tax; requirement of declaration

Current through Register Vol. 40, No. 24, July 15, 2024
A. Every resident and nonresident individual
				shall make a declaration of his estimated tax for every taxable year, if his
				estimated tax, as defined in
				23VAC10-112-10, is greater than
				$150. This requirement of declaration is in effect throughout the entire
				taxable year.
B. A taxpayer is not
				required to file a declaration if:
1. His
				estimated tax is $150 or less; or
2. He is single and his expected Virginia
				adjusted gross income is less than $5,000; or
3. He is married and the combined expected
				Virginia adjusted gross income of the couple is less than $8,000; or
4. He is not required to file a Virginia
				income tax return pursuant to the provisions of § 58.1-342 of the Code of
				Virginia.
EXAMPLE 1: Taxpayer A is employed to render domestic service
				  in the local chapter of a college fraternity. The wages he receives are not
				  subject to withholding under subdivision 2 of § 58.1-460 of the Code of
				  Virginia. His only other income consists of interest and dividend payments. His
				  total Virginia adjusted gross income for the taxable year is expected to be
				  less than $5,000. Because his estimated Virginia adjusted gross income will be
				  less than the minimum amount specified under § 58.1-321 of the Code of
				  Virginia subjecting him to taxation, he is not required to file a
				  declaration.
EXAMPLE 2: Assume that Taxpayer A, in addition to his income
				  above, also works in the local grocery store and taxes are withheld from his
				  wages. His total Virginia adjusted gross income from both jobs exceeds $5,000
				  for the year. Therefore, he is subject to taxation and is required to file a
				  return. If his estimated tax for the year exceeds his withholding and any other
				  credits by more than $150, he must file a declaration of estimated
				  tax.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 112 - DECLARATION OF ESTIMATED INCOME TAX BY INDIVIDUALS › Section 23VAC10-112-21 - Declarations of estimated tax; contents of declaration

Current through Register Vol. 40, No. 24, July 15, 2024
In the declaration required under
				  23VAC10-112-20, the individual
				  shall state:
1. The amount which he
				estimates as the amount of individual income tax for which he will be liable
				for the taxable year;
2. The
				amount, if any, which he estimates will be withheld from wages for the taxable
				year as required by § 58.1-460 et seq. of the Code of Virginia;
3. The excess of the amount estimated under
				subdivision 1 of this section over the amount estimated under subdivision 2 of
				this section shall be considered the estimated tax for the taxable year to be
				paid by the individual as hereinafter provided; and
4. Such other information as may be required
				by the Commissioner. Form 760ES is currently in use for this purpose.
Statutory Authority
§§ 58.1-203 and 58.1-490 of the Code of Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 112 - DECLARATION OF ESTIMATED INCOME TAX BY INDIVIDUALS › Section 23VAC10-112-22 - Declarations of estimated tax; joint declaration by husband and wife

Current through Register Vol. 40, No. 24, July 15, 2024
A husband and wife may file a joint declaration, in which
				  case the liability with respect to the estimated tax shall be joint and
				  several. A joint declaration may not be made:
(i) if either the husband or the wife is a
				nonresident of Virginia unless both are required to file an individual income
				tax return,
(ii) if they are
				separated under a decree of divorce or of separate maintenance, or
(iii) if they have different taxable years.
				If a joint declaration is made but a joint return is not made for the taxable
				year, the estimated tax for such year may be treated as the estimated tax of
				either the husband or the wife, or may be divided between them as they mutually
				agree.
Statutory Authority
§§ 58.1-203 and 58.1-490 of the Code of
					 Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 112 - DECLARATION OF ESTIMATED INCOME TAX BY INDIVIDUALS › Section 23VAC10-112-23 - Declarations of estimated tax; time for filing declaration

Current through Register Vol. 40, No. 24, July 15, 2024
A. A declaration of estimated tax of an
				individual other than a farmer or fisherman shall be filed on or before May 1
				of the taxable year, except that if the requirements of
				23VAC10-112-20 are met for the
				first time:
1. After April 15 and before June
				2 of the taxable year, the declaration shall be filed on or before June 15,
				or
2. After June 1 and before
				September 2 of the taxable year, the declaration shall be filed on or before
				September 15, or
3. After September
				1 of the taxable year, the declaration shall be filed on or before January 15
				of the succeeding year.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 112 - DECLARATION OF ESTIMATED INCOME TAX BY INDIVIDUALS › Section 23VAC10-112-24 - Declarations of estimated tax; amendments of declaration

Current through Register Vol. 40, No. 24, July 15, 2024
An individual may amend a declaration at any time throughout
				  the year by increasing or decreasing the amount of installment payment noted on
				  the payment-voucher form accompanying the payment.
Statutory Authority
§§ 58.1-203 and 58.1-490 of the Code of
					 Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 112 - DECLARATION OF ESTIMATED INCOME TAX BY INDIVIDUALS › Section 23VAC10-112-25 - Declarations of estimated tax; return as declaration or payment

Current through Register Vol. 40, No. 24, July 15, 2024
If on or before March 1 of the succeeding taxable year an
				  individual files his return for the taxable year for which the declaration is
				  required, and pays the full amount of the tax shown to be due on the
				  return:
1. Such return shall be
				considered as his declaration if no declaration was required to be filed during
				the taxable year, but is otherwise required to be filed on or before January
				15.
2. Such return and payment
				shall be considered as the last installment of estimated tax which would
				otherwise have been payable on or before January 15.
Filing a return on or before March 1 of the succeeding
				  taxable year or filing a declaration or payment of the last installment on
				  January 15 will not relieve a taxpayer of liability for the addition to tax for
				  the underpayment of any of the installments of estimated tax that were due on
				  May 1, June 15 or September 15 of the taxable year.
EXAMPLE 1: Taxpayer A discovers on September 15, 1988, that
				  his expected Virginia estimated tax for calendar year 1988 will exceed $150.
				  Taxpayer is required to file his declaration by January 15, 1989, but by filing
				  his 1988 income tax return on or before March 1, 1989, and paying in full his
				  tax liability shown on the return, Taxpayer is deemed to have timely filed the
				  declaration required by
				  23VAC10-112-23 A 3.
EXAMPLE 2: Taxpayer A makes the same discovery but on
				  September 1, 1988. He must file his declaration on or before September 15,
				  1988. His second installment would be due January 15, 1989. (See
				  23VAC10-112-30 A 3). However,
				  because he files his 1988 return on February 28, 1989, accompanied by payment
				  in full of his 1988 liability, he is deemed to have timely made the
				  filing/payment of his second installment.
Statutory Authority
§§ 58.1-203 and 58.1-490 of the Code of Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 112 - DECLARATION OF ESTIMATED INCOME TAX BY INDIVIDUALS › Section 23VAC10-112-26 - Declarations of estimated tax; fiscal year

Current through Register Vol. 40, No. 24, July 15, 2024
23VAC10-112-20 through
				  23VAC10-112-28 shall also apply to
				  a taxable year other than a calendar year. In the case of a fiscal year: the
				  15th day of the fourth month shall be substituted for May 1; the 15th day of
				  the sixth month shall be substituted for June 15; the 15th day of the ninth
				  month shall be substituted for September 15 and the 15th day of the first month
				  of the succeeding taxable year shall be substituted for January 15.
EXAMPLE: Taxpayer F is a fiscal year taxpayer whose taxable
				  year ends on June 30. His income tax return is due on October 15 (15th day of
				  the fourth month following the close of his taxable year). His estimated
				  payments are due on October 15, December 15, March 15 and July 15 of the
				  succeeding taxable year.
Statutory Authority
§§ 58.1-203 and 58.1-490 of the Code of
					 Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 112 - DECLARATION OF ESTIMATED INCOME TAX BY INDIVIDUALS › Section 23VAC10-112-27 - Declarations of estimated tax; short taxable year; declaration requirement

Current through Register Vol. 40, No. 24, July 15, 2024
A separate declaration must be filed where a return is
				  required for a period of less than 12 months, unless the short period is less
				  than four months or the requirements to file are first met after the first day
				  of the last month in the short taxable year. In the case of a decedent, no
				  declaration need be filed after the date of death. The decedent's estate,
				  however, may be liable to file a declaration of estimated tax.
For the purpose of determining whether a declaration must be
				  filed for a short taxable period which results from a change in annual
				  accounting period, the tax for the short period shall be placed on an annual
				  basis by multiplying the amount thereof by 12 and dividing the result by the
				  number of months in the short period.
Statutory Authority
§§ 58.1-203 and 58.1-490 of the Code of
					 Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 112 - DECLARATION OF ESTIMATED INCOME TAX BY INDIVIDUALS › Section 23VAC10-112-28 - Declaration for individual under a disability

Current through Register Vol. 40, No. 24, July 15, 2024
The declaration of estimated tax for an individual who is
				  unable to make a declaration by reason of any disability shall be made and
				  filed by his guardian, committee, fiduciary or other person charged with the
				  care of his person or property (other than a receiver in possession of only a
				  part of his property), or by his duly authorized agent.
Statutory Authority
§§ 58.1-203 and 58.1-490 of the Code of
					 Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 112 - DECLARATION OF ESTIMATED INCOME TAX BY INDIVIDUALS › Section 23VAC10-112-30 - Payments of estimated tax

Current through Register Vol. 40, No. 24, July 15, 2024
A.
				General. The estimated tax relating to the filed declaration shall be paid as
				follows:
1. If the declaration is filed on or
				before May 1 of the taxable year, the estimated tax shall be paid in four equal
				installments. The first installment shall be paid at the time the declaration
				is filed, and the second, third and fourth installments on the following June
				15, September 15, and January 15, respectively.
2. If the declaration is filed after May 1
				but on or before June 15 of the taxable year, and is not required to be filed
				on or before May 1 of the taxable year, the estimated tax shall be paid in
				three equal installments. The first installment shall be paid at the time the
				declaration is filed, and the second and third installments on the following
				September 15 and January 15, respectively.
3. If the declaration is filed after June 15
				but on or before September 15 of the taxable year, and is not required to be
				filed on or before June 15 of the taxable year, the estimated tax shall be paid
				in two equal installments, the first at the time the declaration is filed, and
				the second on the following January 15.
4. If the declaration is filed after
				September 15 of the taxable year, and is not required to be filed on or before
				September 15 of the taxable year, the estimated tax shall be paid in full at
				the time the declaration is filed.
5. If the declaration is filed after the due
				date, including cases where an extension of time has been granted, subdivisions
				2, 3 and 4 of this subsection shall not apply, and all installments of
				estimated tax which would have been due shall be paid at or before the time of
				filing, and the remaining installments shall be paid at the times at which, and
				in the amounts in which, they would have been payable if the declaration had
				been filed when due.
Example: Taxpayer B becomes obligated on April 1, 1983, to
				  file a declaration of estimated tax, due on or before May 1, 1983, and is
				  required to pay his estimated tax in four equal installments (by May 1, June
				  15, and September 15, 1983 and by January 15, 1984). In fact, he files the
				  declaration on September 20, 1983, at which time he is delinquent in the
				  payment of three installments of his estimated tax for taxable year 1983.
				  Therefore, he must pay three-fourths of his estimated tax when he files his
				  declaration September 20, 1983.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 112 - DECLARATION OF ESTIMATED INCOME TAX BY INDIVIDUALS › Section 23VAC10-112-42 - Failure by individual to pay estimated tax; period of underpayment

Current through Register Vol. 40, No. 24, July 15, 2024
The period of the underpayment shall run from the date the
				  installment was required to be paid to the earlier of the following
				  dates:
1. May 1, if a calendar year,
				or the 15th day of the fourth month following the close of the, taxable year,
				if a fiscal year; or
2. With
				respect to any portion of the underpayment, the date on which such portion is
				paid. For purposes of this subdivision, a payment of estimated tax on any
				installment date shall be considered a payment of any previous underpayment
				only to the extent such payment exceeds the amount of the installment
				determined under subdivision 1 of
				23VAC10-112-41 for such
				installment date.
EXAMPLE 1: Taxpayer C filed her return for taxable year 1988
				  on May 1, 1989, showing a tax liability of $10,000. She had previously paid
				  $1,500 of estimated tax on each of May 1, June 15 and September 15, 1988, and
				  January 15, 1989, and made no other payments before the return was filed.
				  Because each $1,500 payment was less than 90% of $2,500 (one-quarter of the tax
				  shown as due on the return), the addition to the tax applies to each
				  underpayment on each installment date, computed as follows (and assuming an
				  annual interest rate of 12%):
Amount of each underpayment installment:
90% of $2,500 =
$2,250
less installment paid
$1,500
$750
1st installment-period: 5/1/88 to 5/1/89 (12% x 365/365
						  x $750)
$90
2nd installment-period: 6/15/88 to 5/1/89 (12% x 320/365
						  x $750)
$78.75
3rd installment-period: 9/15/88 to 5/1/89 (12% x 228/365
						  x $750)
$56.25
4th installment-period: 1/15/89 to 5/1/89 (12% x 106/365
						  x $750)
$26.25
Total addition to tax
$251.25
EXAMPLE 2: Taxpayer had a total tax liability of $5,000, 90%
				  (or $4,500) of which would be due in quarterly installments of $1,125 each. He
				  made payments as follows: $200 on May 1, $800 on June 15, $3,000 on September
				  15 and $0 on January 15. The $1,875 overpayment from September 15 would be
				  applied to the other quarterly underpayments in the following order and
				  amounts: $925 to May 1, $325 to June 15, and $625 to January
				  15.
Statutory Authority
§§ 58.1-203 and 58.1-492 of the Code of Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 112 - DECLARATION OF ESTIMATED INCOME TAX BY INDIVIDUALS › Section 23VAC10-112-44 - Failure of individual to pay estimated tax; application of section in case of tax withheld on wages

Current through Register Vol. 40, No. 24, July 15, 2024
For purposes of applying this section:
1. The estimated tax shall be computed
				without any reduction for the amount which the individual estimates as his
				credit under § 58.1-480 of the Code of Virginia and its regulations
				(relating to tax withheld at source on wages), and
2. The amount of the credit allowed under
				§ 58.1-480 of the Code of Virginia and its regulations (dealing with
				withheld amounts credited to individual taxpayer) for the taxable year shall be
				deemed a payment of estimated tax, and an equal part of such amount shall be
				deemed paid on each installment date (determined under § 58.1-491 of the
				Code of Virginia and its regulations) for such taxable year, unless the
				taxpayer establishes the dates on which all amounts were actually withheld, in
				case the amounts so withheld shall be deemed payments of estimated tax on the
				dates on which such amounts were actually withheld.
Statutory Authority
§§ 58.1-203 and 58.1-492 of the Code of Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 112 - DECLARATION OF ESTIMATED INCOME TAX BY INDIVIDUALS › Section 23VAC10-112-45 - Failure of individual to pay estimated tax; short taxable year; underpayment of estimated tax

Current through Register Vol. 40, No. 24, July 15, 2024
A. In
				any case in which the taxable year for which an underpayment of estimated tax
				exists is a short taxable year due to a change in annual accounting periods, in
				determining the tax (i) shown on the return for the preceding taxable year (for
				purposes of subdivision 1(a) of subsection D of § 58.1-492 of the Code of
				Virginia), (ii) based on the personal exemptions and rates for the current
				taxable year but otherwise on the basis of the facts shown on the return for
				the preceding taxable year, and the law applicable to such year (for purposes
				of subdivision 1(b) of subsection D of § 58.1-492 of the Code of
				Virginia), the tax will be reduced by multiplying it by the number of months in
				the short taxable year and dividing the resulting amount by 12.
B. If the taxable year for which an
				underpayment of estimated tax exists is a short taxable year due to a change in
				annual accounting periods, in annualizing the income for the months in the
				taxable year preceding an installment date, for purposes of subdivision 1(c) of
				subsection D of § 58.1-492 of the Code of Virginia, the personal
				exemptions allowed as deductions shall be prorated by multiplying such
				deduction by the ratio of months in the short taxable year to 12
				months.
C. If "the preceding
				taxable year" referred to in subdivision 1(b) of subsection D of §
				58.1-492 of the Code of Virginia was a short taxable year, for purposes of
				determining the applicability of the exception described in subdivision 1(b) of
				subsection D of § 58.1-492 of the Code of Virginia, the tax, computed on
				the basis of the facts shown on the return for the preceding year, shall be the
				tax computed in the manner described in
				23VAC10-110-230. If the tax rates
				or the taxpayer's status with respect to personal exemptions for the taxable
				year in which the underpayment occurs differs from such rates or status
				applicable to the preceding taxable year, the tax determined in accordance with
				this subsection shall be recomputed to reflect the rates and status applicable
				to the year in which the underpayment occurs.
Statutory Authority
§§ 58.1-203 and 58.1-492 of the Code of
					 Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 112 - DECLARATION OF ESTIMATED INCOME TAX BY INDIVIDUALS › Form - FORMS (23VAC10-112)

Current through Register Vol. 40, No. 24, July 15, 2024
Underpayment of Estimated Tax by Individuals, Estates and
				  Trusts, Form 760 C.
Virginia Estimated Individual Income Tax Declaration and
				  Forms for Individuals, Estates and Trusts, Form 760ES.
Underpayment of Estimated Tax by Farmers and Fishermen, Form
				  760F.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 115 - FIDUCIARY INCOME TAX › Part I - Fiduciary Income Tax › Section 23VAC10-115-10 - Definitions

Current through Register Vol. 40, No. 24, July 15, 2024
For the purpose of this chapter and unless otherwise
					 required by the context:
"Accumulation distribution" has the meaning set forth in
					 U.S. Treasury Reg. § 1.665(b)-1A(a).
"Income and deductions from Virginia sources"
					 includes:
1. Items of income, gain,
				  loss and deduction attributable to:
a. The
				  ownership of any interest in real or tangible personal property in Virginia;
				  or
b. A business, trade, profession
				  or occupation carried on in Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 115 - FIDUCIARY INCOME TAX › Part I - Fiduciary Income Tax › Section 23VAC10-115-20 - Transitional modifications to Virginia income

Current through Register Vol. 40, No. 24, July 15, 2024
A. Generally. For taxable years beginning on
				  or after January 1, 1972, Virginia is in conformity with federal income tax
				  laws. For taxable years beginning before January 1, 1972, a trust beneficiary
				  was taxed on his distributive share, whether distributed or not, of the net
				  income of a trust for the taxable year. To avoid double taxation of income
				  because of the difference in treatment of accumulation distribution between the
				  old and new law, a trust beneficiary may subtract from his Virginia taxable
				  income that portion of an accumulation distribution allocable to the
				  undistributed net income accumulated by the trust under the old law.
B. Subtraction allowed. That portion of any
				  accumulation distribution which is allocable, under the laws of the United
				  States relating to federal income taxes, to undistributed net income of a trust
				  for any taxable year beginning on or before December 31, 1971, shall be
				  subtracted from Virginia taxable income. The rules prescribed by such laws of
				  the United States with reference to any such accumulation distribution shall be
				  applied, mutatis mutandis.
C.
				  Limitation on credit allowable. The credit provided by § 58.1-370 of the
				  Code of Virginia in the case of accumulation distributions shall in no instance
				  encompass any part of any tax paid for a taxable year beginning on or before
				  December 31, 1971.
D. Example. A
				  trust which reports on a calendar-year basis had undistributed net income of
				  $7,460 at the end of calendar year 1971. In calendar year 1972 the trust makes
				  an accumulation distribution to the beneficiary of $5,000 which, for federal
				  income tax purposes, would be thrown back and allocated to the 1971
				  undistributed net income of $7,460. The modification permits the beneficiary to
				  subtract $5,000 (the 1972 accumulation distribution allocable to the 1971
				  undistributed net income) from his 1972 Virginia taxable income.
Statutory Authority
§§ 58.1-203 and 58.1-315 of the Code of
						Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 115 - FIDUCIARY INCOME TAX › Part I - Fiduciary Income Tax › Section 23VAC10-115-40 - Virginia taxable income of a resident estate or trust

Current through Register Vol. 40, No. 24, July 15, 2024
A. The Virginia taxable income of a resident
				  estate or trust means its federal taxable income for the taxable year to which
				  there shall be added or subtracted, as the case may be, the share of the estate
				  or trust in the Virginia fiduciary adjustment determined under subsection
				  B.
B. The respective shares of an
				  estate or trust and its beneficiaries (including, solely for the purpose of
				  this allocation, nonresident beneficiaries) in the Virginia fiduciary
				  adjustment shall be in proportion to their respective shares of distributable
				  net income of the estate or trust. If the estate or trust has no distributable
				  net income for the taxable year, the share of each beneficiary in the Virginia
				  fiduciary adjustment shall be in proportion to his share of the estate or trust
				  income for such year, under local law or the governing instrument, which is
				  required to be distributed currently and any other amounts of such income
				  distributed in such year. Any balance of the Virginia fiduciary adjustment
				  shall be allocated to the estate or trust.
Example 1: The Estate of Jane Doe has federal taxable
					 income of $36,000 for calendar year 1983 and its Virginia fiduciary adjustment
					 is a subtraction of $6,000. The Estate has three beneficiaries, two of whom are
					 Virginia residents and the third who is a resident of Maryland. Each
					 beneficiary has a 1/4 share of distributable net income of the Estate. In
					 calendar year 1983 the Estate distributes $27,000 (3/4 times $36,000). Each
					 beneficiary is entitled to subtract $1,500 (1/4 of the $6,000 Virginia
					 fiduciary adjustment) from his federal adjusted gross income. The $1,500
					 balance of the adjustment is allocated to the Estate, yielding Virginia taxable
					 income of $7,500 ($36,000 minus $27,000 distribution minus $1,500
					 adjustment).
Example 2: Trust X has no distributable net income and no
					 federal taxable income for calendar year 1982. The Virginia fiduciary
					 adjustment is $15,000, comprised of excess cost recovery under § 58.1-322B
					 6 of the Code of Virginia. The trust instrument provides that all income shall
					 be distributed currently, in the following percentages: 50% to A, 30% to B and
					 20% to C. All of the adjustment ($7,500 to A, $4,500 to B and $3,000 to C) is
					 accordingly allocated to the beneficiaries and the trust's Virginia taxable
					 income is $0.
Statutory Authority: §
												58.1-203 of the Code of Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 115 - FIDUCIARY INCOME TAX › Part I - Fiduciary Income Tax › Section 23VAC10-115-50 - Virginia taxable income of a nonresident estate or trust

Current through Register Vol. 40, No. 24, July 15, 2024
A. The Virginia
				  taxable income of a nonresident estate or trust shall be its share of income,
				  gain, loss and deduction attributable to Virginia sources as determined under
				  23VAC10-115-60 increased or
				  reduced, as the case may be, by:
1. The amount
				  derived from or connected with Virginia sources of any income, gain, loss and
				  deduction recognized for federal income tax purposes but excluded from the
				  computation of distributable net income of the estate or trust; and
2. The net amount of any modifications as
				  provided for in § 58.1-322 of the Code of Virginia and regulations
				  promulgated thereunder (not including subsection D thereof) with respect to the
				  income or gain referred to in A 1 of this section.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 115 - FIDUCIARY INCOME TAX › Part I - Fiduciary Income Tax › Section 23VAC10-115-70 - Credit to trust beneficiary receiving accumulation distribution

Current through Register Vol. 40, No. 24, July 15, 2024
A. A beneficiary of
				  a trust whose Virginia taxable income includes all or part of an accumulation
				  distributed by such trust is allowed a credit against the tax otherwise due
				  under these regulations for all or a proportionate part of any tax paid by the
				  trust under these regulations which would not have been payable if the trust
				  had in fact made distributions to its beneficiaries at the times and in the
				  amounts specified in the laws of the United States relating to federal income
				  taxes. The proportion of Virginia income tax paid by the trust which is
				  attributable to the accumulation distribution is deemed to be the same as the
				  proportion of federal income tax paid which is attributable to the accumulation
				  distribution.
B. The credit under
				  this section shall not reduce the tax otherwise due from the beneficiary to an
				  amount less than would have been due if the accumulation distribution or his
				  part thereof were excluded from his Virginia taxable income.
Example: Trust T accumulates income in the amount of
					 $10,000 for each of the years 1978 through 1981 for which it pays an aggregate
					 Virginia income tax of $1,480 ($370 for each of 1978 through 1981). In 1982 it
					 distributes the accumulated income of $38,520 ($40,000 less $1,480) to the sole
					 beneficiary who has no other income. The sole beneficiary owes a tax of $1,845,
					 but receives a credit of $1,480, for a net tax liability of $365. If the amount
					 of the credit had exceeded the sole beneficiary's tax liability, he would not
					 have been entitled to a refund.
Statutory Authority
§§ 58.1-203 and 58.1-370 of the Code of
						Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 115 - FIDUCIARY INCOME TAX › Part I - Fiduciary Income Tax › Section 23VAC10-115-80 - Credits for taxes paid other states

Current through Register Vol. 40, No. 24, July 15, 2024
The provisions of § 58.1-332 of Code of Virginia will
					 apply mutatis mutandis to trusts and estates. See Individual Income Tax
					 Regulations,
					 23VAC10-110-220 through
					 23VAC10-110-222. The credit is
					 available only to the entity which paid the tax, that is, a credit to a
					 beneficiary for a tax paid by the beneficiary to another state, or a credit to
					 the trust for tax paid by the trust to another state.
Statutory Authority
§§ 58.1-203 and 58.1-371 of the Code of
						Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 115 - FIDUCIARY INCOME TAX › Part I - Fiduciary Income Tax › Section 23VAC10-115-90 - Other credits

Current through Register Vol. 40, No. 24, July 15, 2024
A.
				  Virginia Neighborhood Assistance Act credit. A tax credit is provided under the
				  Virginia Neighborhood Assistance Act for businesses which invest in approved
				  neighborhood assistance projects designed to benefit low income individuals.
				  The Act is administered by the Virginia Department of Social Services, which
				  should be contacted for additional information. To claim the credit,
				  fiduciaries or beneficiaries must attach to their respective income tax returns
				  a copy of a statement from the Department of Social Services certifying the
				  credit. A statement from the fiduciary should also be attached specifying the
				  amount of the business credit applicable to each beneficiary.
B. Urban Enterprise Zone credit. A tax credit
				  is provided under the Virginia Urban Enterprise Zone Act to qualified business
				  firms which derive income from conducting business in an urban enterprise zone.
				  The Act is administered by the Virginia Department of Housing and Community
				  Development, which should be contacted for additional information.
To claim the credit, fiduciaries or beneficiaries must
					 attach to their respective income tax returns a copy of a certificate of
					 qualification to receive state tax incentives issued by the Department of
					 Housing and Community Development. A statement from the fiduciary should also
					 be attached specifying the amount of credit applicable to each beneficiary.
					 Form 301, Urban Enterprise Zone Credit, must be attached to the fiduciary
					 income tax return.
Statutory Authority: §
												58.1-203 of the Code of Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 115 - FIDUCIARY INCOME TAX › Part I - Fiduciary Income Tax › Section 23VAC10-115-100 - Accounting

Current through Register Vol. 40, No. 24, July 15, 2024
A. An estate or
				  trust's taxable year under these regulations shall be the same as its taxable
				  year for federal income tax purposes.
B. If a taxpayer's taxable year is changed
				  for federal income tax purposes, its taxable year for purposes of these
				  regulations shall be similarly changed. If a taxpayer's first or last taxable
				  year is less than 12 months, there shall be no proration. If a taxable year of
				  less than twelve months results from a change of taxable year, the Virginia
				  taxable income shall be prorated as follows:
1.
a. For a
				  resident estate or trust, federal taxable income for the short taxable year (as
				  computed before annualizing income for federal purposes) shall be adjusted by
				  the Virginia fiduciary adjustment attributable to the short taxable year. The
				  result will be Virginia taxable income calculated as for a normal taxable
				  year.
b. For a nonresident estate
				  or trust, Virginia taxable income for the short taxable year shall be computed
				  in accordance with
				  23VAC10-115-50 and
				  23VAC10-115-60.