reglab/statecodes huggingface dataset:
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 20 - GENERAL PROVISIONS APPLICABLE TO ALL TAXES ADMINISTERED BY THE DEPARTMENT OF TAXATION › Section 23VAC10-20-190 - Protective claims (after payment)

Current through Register Vol. 40, No. 24, July 15, 2024
A. Filing.
1. If all assessed taxes, penalties and
				accrued interest have been paid and taxpayer desires to preserve his judicial
				remedies he may file a protective claim with the Tax Commissioner within three
				years of the assessment.
2. There
				is no form for applications for protective claims. The department will accept
				any submission that sufficiently identifies the taxpayer, type of tax, taxable
				period, remedy sought, date of assessment and the date of payment, a statement
				signed by the taxpayer or duly appointed or authorized agent or attorney
				setting forth each alleged error in the assessment, the grounds upon which
				taxpayer relies, and all facts relevant to taxpayer's contention, and, if
				appropriate, should show that determination of the facts or law applicable to
				taxpayer depends upon the outcome of another case pending in the department or
				the courts. See the department's website at
www.tax.virginia.gov
for the appropriate
				contact and mailing information.
3.
				An application for a protective claim filed on behalf of a taxpayer by an
				attorney, accountant or tax preparer must be signed by the taxpayer or
				accompanied by a duly executed power of attorney in favor of such
				representative who signs the application or claim.
4. Taxpayer may submit a protective claim
				even if the merits have already been administratively considered under either
				§ 58.1-1821 or 58.1-1823 of the Code of Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 20 - GENERAL PROVISIONS APPLICABLE TO ALL TAXES ADMINISTERED BY THE DEPARTMENT OF TAXATION › Section 23VAC10-20-200 - Interest on overpayments or improper collection

Current through Register Vol. 40, No. 24, July 15, 2024
A. Generally. Interest will be allowed and
				paid upon the overpayment of any tax administered by the department, the refund
				of which is either permitted or required under Article 2 (§ 58.1-1820 et
				seq.) of Chapter 18 of Title 58.1 of the Code of Virginia, at a rate equal to
				the rate of interest established pursuant to § 58.1-15 of the Code of
				Virginia. Such interest will accrue from a date 60 days after the date of the
				payment of the tax, except as set forth below, to a date determined by the
				Department of Taxation, which will not be more than 30 days prior to the date
				of the refund check.
B. Income tax.
				Refunds appearing on the face of an income tax return will accrue interest from
				a date 60 days after the due date for filing the return or the date on which
				such return was filed, whichever is later. Refunds resulting from payments of
				estimated tax or withholding tax can only be claimed on the face of the income
				tax return to which such payments apply.
C. Erroneous assessment.
1. Refunds pursuant to an erroneous
				assessment accrue interest from the date the assessment was paid.
2. If the assessment is a self assessment
				paid upon filing a return, the date the assessment is paid is the date the
				return is filed and the tax paid or the last day prescribed by law for filing
				the return, whichever is later.
3.
				If the assessment is a written assessment made pursuant to notice by the
				department, the date the assessment is paid is the date the department receives
				payment.
4. A refund is the result
				of an erroneous assessment if the refund is pursuant to an application for
				correction of an erroneous assessment or improper collection under §
				58.1-1821 of the Code of Virginia, an amended return under § 58.1-1823 of
				the Code of Virginia, a protective claim under § 58.1-1824 of the Code of
				Virginia or an application to a court for correction of an erroneous assessment
				or improper collection under § 58.1-1825 of the Code of
				Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 20 - GENERAL PROVISIONS APPLICABLE TO ALL TAXES ADMINISTERED BY THE DEPARTMENT OF TAXATION › Form - FORMS (23VAC10-20)

Current through Register Vol. 40, No. 24, July 15, 2024
Power of Attorney and Declaration of Representation, PAR 101
				  (rev. 6/06).
Offer in Compromise Business Request for Settlement, OIC-Bus
				  (eff. 11/08).
Offer in Compromise Individual Request for Settlement, Form
				  21 OIC-Ind (eff. 11/08).
Administrative Appeal Pursuant to Virginia Code §
58.1-1821
.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 55 - VIRGINIA CORN EXCISE TAX › Section 23VAC10-55-40 - Report and payment by handler

Current through Register Vol. 40, No. 24, July 15, 2024
A. Definition. The following word or term
				when used in this section shall have the following meaning unless the context
				clearly indicates otherwise:
"Handler" means any person, firm, corporation or any other
				  business entity that is a processor, dealer, shipper, country buyer, exporter
				  that handles corn produced in Virginia, or farmer who sells his corn out of
				  state or to anyone other than a "handler."
B. Generally. The handler of corn is liable
				for remitting the $.01 per bushel corn excise tax to the Tax Commissioner. If
				the handler purchases, from farmers, corn subject to the excise tax, the
				handler must deduct the excise tax from any payment made to the farmer for the
				corn. All corn handlers must register with the Tax Commissioner for receiving
				the quarterly corn excise tax returns and reporting the corn excise
				tax.
C. Examples.
Example 1: Farmer A grows corn in Virginia and sells the
				  harvested crop for processing to Processor B located in North Carolina. Farmer
				  A is the "handler" and responsible for remitting the Virginia Corn Excise Tax
				  to the Virginia Department of Taxation.
Example 2: Farmer E grows corn in Virginia and sells the
				  harvested corn for processing to Processor F located in Virginia. Processor F
				  is the "handler" and is responsible for collecting from the farmer and
				  remitting the Virginia Corn Excise Tax to the Virginia Department of
				  Taxation.
Example 3: Farmer G grows corn in Virginia and sells the
				  harvested crop for seed to Farmer H. Farmer G is the "handler" and is
				  responsible for remitting the Virginia Corn Excise Tax to the Virginia
				  Department of Taxation.
Statutory Authority: § 58.1-203 of the Code of
					 Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 55 - VIRGINIA CORN EXCISE TAX › Form - FORMS (23VAC10-55)

Current through Register Vol. 40, No. 24, July 15, 2024
Form
				  CO-1, Virginia Corn Assessment Return and Instructions (CO-AR W) (rev.
				  5/2006)
Form
				  R-1, Business Registration Form (1501220) and Instructions (1501228) (rev.
				  3/2015)
Statutory Authority: § 58.1-203 of the Code of
					 Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 60 - VIRGINIA EGG EXCISE TAX › Form - FORMS (23VAC10-60)

Current through Register Vol. 40, No. 24, July 15, 2024
Virginia Egg Excise Tax Return, Form EG-1 (rev. 5/06).
Worksheet for Virginia Egg Board and Conversion Calculations
				  for Egg Products, Form EG-2 (rev. 5/05).
Business Registration Application, Form R-1 (rev.
				  3/08).
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 65 - VIRGINIA PEANUT EXCISE TAX › Form - FORMS (23VAC10-65)

Current through Register Vol. 40, No. 24, July 15, 2024
Virginia Peanut Excise Tax Return, Form PN-1 (rev.
				  5/06).
Business Registration Application, Form R-1 (rev.
				  3/08).
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 110 - INDIVIDUAL INCOME TAX › Section 23VAC10-110-20 - Meaning of terms

Current through Register Vol. 40, No. 24, July 15, 2024
A.
				Generally. Words, terms, and expressions used in relation to the individual
				income tax shall have the same meaning as the words or expressions used in a
				comparable context in the income tax laws of the United States unless the
				context of the words or expressions contained within the Virginia law are
				otherwise defined or clearly required to have a different meaning. The meaning
				of a word or expression is clearly required to be different from the meaning of
				such word or expression in the income tax laws of the United States if:
1. Section 58.1-300 et seq. of the Code of
				Virginia expressly defines such word or expression, or
2. required to prevent an item from being
				subject to double taxation or double deduction in a single return, or
3. the Commissioner determines that a
				different meaning is required because the word or expression is not used in a
				comparable context in the laws of the United States and publishes such
				determination by regulation.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 110 - INDIVIDUAL INCOME TAX › Section 23VAC10-110-60 - Refund of overpayment

Current through Register Vol. 40, No. 24, July 15, 2024
A.
				Generally. If the amount of tax paid by any individual exceeds that which is
				actually due, the overpayment shall be refunded to the taxpayer or, at the
				taxpayer's request, credited against his tax liability for the next succeeding
				taxable year.
B. Set-off debt
				collection.
1. Generally. Pursuant to the
				provisions of the Set-Off-Debt Collection Act (§ 58.1-520 et seq. of the
				Code of Virginia) the tax refund of any individual may be used in whole or in
				part to set off any delinquent debt owed by the taxpayer to a claimant agency
				as defined in § 58.1-520 of the Code of Virginia, which includes all state
				agencies, local governments, and the Supreme Court. The determination of
				whether a refund set-off is proper and the resolution of questions concerning a
				set-off must be addressed to the claimant agency and not the Department of
				Taxation.
2. Amended returns. Any
				portion of a tax refund which has been transmitted to a claimant agency
				pursuant to a final debt set-off is deemed to have been paid to the taxpayer.
				Therefore, if an amended return is filed relative to an overpayment of tax
				which has been transmitted to a claimant agency, only that portion in excess of
				the amount transmitted shall be refunded. If an amended return shows a lesser
				overpayment than that on the original return and such prior refund amount has
				been transmitted to a claimant agency, the taxpayer will be liable for payment
				to the department for the difference between the original overpayment and the
				amount shown on the amended return, as though the original refund had been made
				directly to the taxpayer.
A husband and wife who file separately on a combined return
				  and who, after notification that all or a portion of the refund resulting from
				  such return has been set-off to satisfy a delinquent debt claim, file an
				  amended return which results in a shift in the refund interest from one spouse
				  to the other shall be deemed to have fraudulently conveyed interest in the
				  refund and such amended returns shall not be accepted unless the result is an
				  overall increased refund. (For additional information, see Set-Off Debt
				  Collection Act Regulations, Chapter 380 of Title 23 of the Virginia
				  Administrative Code.)
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 110 - INDIVIDUAL INCOME TAX › Section 23VAC10-110-80 - Net operating losses; definitions

Current through Register Vol. 40, No. 24, July 15, 2024
The following words and terms, when used in this regulation,
				  shall have the following meanings, unless the context clearly indicates
				  otherwise:
"Carryback year" means any year preceding the loss year in
				  which a deduction for a federal net operating loss is claimed pursuant to IRC
				  § 172(b) for federal income tax purposes.
"Carryforward year" means any year subsequent to the loss
				  year in which a deduction for a federal net operating loss is claimed pursuant
				  to IRC § 172(b) for federal income tax purposes.
"Federal net operating loss" means an amount equal to the
				  amount defined by IRC § 172(c).
"Loss year" means the taxable year to which the net
				  operating loss is attributable.
"Net operating loss absorbed" means the amount of federal
				  net operating loss as defined by IRC § 172(c) that is either used to
				  offset modified federal taxable income in a carryback year or included in the
				  computation of federal adjusted gross income in a carryforward year. In a
				  carryback year, it is the amount necessary to reduce modified federal taxable
				  income to zero, but not below zero. (See IRC § 172(b)(2).)
"Recomputed federal adjusted gross income" means the federal
				  adjusted gross income as last determined for the carryback year, less the
				  amount of net operating loss absorbed as defined above.
"Virginia modification" means the modifications specified in
				  §§ 58.1-322B and 58.1-322C of the Code of Virginia that relate to
				  federal adjusted gross income, the modifications to federal itemized deductions
				  specified in § 58.1-322D 1.a, the additional deduction of $400 specified
				  in § 58.1-322D 2, the beneficiary modifications specified in §
				  58.1-322E, and the transitional modifications specified in § 58.1-322F of
				  the Code of Virginia.
Statutory Authority
§§ 58.1-203 and 58.1-311 of the Code of
					 Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 110 - INDIVIDUAL INCOME TAX › Section 23VAC10-110-81 - Net operating losses; generally

Current through Register Vol. 40, No. 24, July 15, 2024
There is no express statutory authority in the Code of
				  Virginia for a separate Virginia net operating loss. Since under §
				  58.1-322 of the Code of Virginia the starting point on a Virginia individual
				  income tax return is federal adjusted gross income, and the federal carryback
				  or carryforward of a federal net operating loss is reflected in federal
				  adjusted gross income, Virginia taxable income is indirectly affected by
				  federal net operating losses to the extent that they are reflected in federal
				  adjusted gross income.
Statutory Authority
§§ 58.1-203 and 58.1-311 of the Code of
					 Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 110 - INDIVIDUAL INCOME TAX › Section 23VAC10-110-82 - Net operating losses; Virginia modifications in the loss year

Current through Register Vol. 40, No. 24, July 15, 2024
A. Generally. Each
				item that is a component of the federal net operating loss must be examined to
				see if a Virginia modification is required to be made to that item. To the
				extent that a Virginia modification is required, the net amount of such
				modifications shall become associated with the federal net operating loss. (See
				23VAC10-110-83.)
In addition to the modifications enumerated under
				  23VAC10-110-80, a modification
				  shall be made to any other item that is a component of the federal net
				  operating loss that Virginia law treats dissimilarly.
B. Zero bracket amount. There is no provision
				in the Code of Virginia for the allowance of a deduction for an amount equal to
				the federal zero bracket amount. In cases where taxpayers for federal purposes
				do not itemize deductions, all or part of the federal zero bracket amount may
				be included in the amount of federal net operating loss. To the extent that any
				amount of the federal zero bracket amount is included in the federal net
				operating loss, a positive Virginia modification is required. (See example
				3.)
C. Other modifications
				required.
1. A positive modification is
				required for the items enumerated in § 58.1-322B of the Code of
				Virginia-Additions to federal adjusted gross income. Also see
				23VAC10-110-141.
2. A negative modification is required for
				the items enumerated in § 58.1-322C of the Code of Virginia-Subtractions
				from federal adjusted gross income. Also see
				23VAC10-110-142.
3. A positive modification is required for
				the state tax deduction specified in § 58.1-322D 1 a of the Code of
				Virginia, and a negative modification is required for the additional charitable
				mileage deduction allowed by this same section. Also see
				23VAC10-110-143 1 b.
4. A negative modification is required for
				the additional deduction of $400 specified in § 58.1-322D 2 of the Code of
				Virginia. Also see
				23VAC10-110-143 3.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 110 - INDIVIDUAL INCOME TAX › Section 23VAC10-110-84 - Net operating loss carrybacks and carryovers

Current through Register Vol. 40, No. 24, July 15, 2024
A. Generally. For Virginia purposes a net
				operating loss deduction is allowed only to the extent that it is allowed in
				computing federal adjusted gross income. Therefore, it must be carried back or
				carried forward to the same year as for federal income tax purposes.
B. Exception. There shall be no carryback of
				any net operating loss to any taxable years beginning prior to January 1, 1972.
				In the case of a net operating loss that for federal income tax purposes that
				is carried back to any taxable year prior to January 1, 1972, the amount of
				such loss is to be carried forward for Virginia purposes and used to offset
				taxable income in successive tax years subsequent to 1972 until the amount of
				federal loss is offset.
Statutory Authority
§§ 58.1-203 and 58.1-311 of the Code of
					 Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 110 - INDIVIDUAL INCOME TAX › Section 23VAC10-110-85 - Net operating losses; filing status

Current through Register Vol. 40, No. 24, July 15, 2024
A. Generally. Taxpayers shall use the same
				filing status for Virginia purposes as they do for federal purposes. In cases
				where the taxpayers use a different filing status for federal purposes in the
				loss year than in the carryback or carryforward year, the federal provisions of
				Treasury Reg. § 1.172-7 shall be applicable.
B. When taxpayers elect a different Virginia
				filing status. Taxpayers may elect a different Virginia filing status in the
				loss year than they elected in the carryback or carryforward year. Section
				58.1-341 of the Code of Virginia allows Virginia taxpayers who file a joint
				federal income tax return to file either a joint Virginia income tax return,
				separate Virginia income tax returns or to file separately on a combined
				return. (See
				23VAC10-110-240 C.)
1. When taxpayers elect on their Virginia
				return to file married, filing jointly in the loss year and to file separately
				or to file married filing separately on a combined return in the carryback or
				carryforward year, the loss and all Virginia loss year modifications shall
				first be claimed by the spouse who would have been entitled to claim the loss
				if separate returns or married filing separately on a combined return had been
				chosen in the loss year. If the amount of loss exceeds the income of that
				spouse, then the taxpayers may exercise their election of changing their filing
				status to married filing jointly in the carryback or carryforward
				year.
2. When taxpayers elect to
				file separate Virginia returns or elect to file separately on a combined return
				in the loss year and file married, filing jointly in the carryback or
				carryforward year, the loss and all Virginia loss year modifications
				attributable to both spouses for the loss year shall follow the loss to the
				carryback or carryforward year return.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 110 - INDIVIDUAL INCOME TAX › Section 23VAC10-110-86 - Net operating losses; preparation of the carryback year or carryforward year return

Current through Register Vol. 40, No. 24, July 15, 2024
A. Carryback
				year return. The amended Virginia return for the carryback year shall start
				with the recomputed federal adjusted gross income. The net modifications from
				the NET OPERATING LOSS MODIFICATION WORKSHEET shall be entered on the line for
				"other" additions to federal adjusted gross income if positive or shall be
				entered on the line for "other" subtractions from federal adjusted gross income
				if negative. This net modification for the loss year shall be combined with the
				modifications as originally claimed for the carryback year, the recomputed
				federal adjusted gross income, personal exemption amount and deduction amount
				to compute Virginia taxable income in the carryback year. Since the computation
				of the Virginia standard deduction and the amount of Virginia credit for
				taxpayers age 62 and over are both based upon the amount of federal adjusted
				gross income, these amounts must be recomputed in the carryback year to reflect
				the recomputed federal adjusted gross income.
The following forms and their supporting schedules must be
				  included with the amended return.
1.
				NET OPERATING LOSS MODIFICATION WORKSHEET or facsimile.
2. Copy of the Virginia return for the loss
				year.
3. Copy of the Federal Form
				1045 or 1040X.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 110 - INDIVIDUAL INCOME TAX › Section 23VAC10-110-87 - Net operating losses; when and where to file; interest

Current through Register Vol. 40, No. 24, July 15, 2024
A. When to file.
				The provisions of § 58.1-1823 of the Code of Virginia set forth the
				statute of limitations for filing amended returns claiming a refund that
				reflect the carryback of a federal net operating loss. Generally, the amended
				carryback year return must be filed within the statutory period for filing the
				loss year return. (See
				23VAC10-20-180.)
B. Where to file. The amended return for the
				carryback year is to be filed in accordance with the requirements of
				23VAC10-110-260.
C. Interest. Any overpayment of tax resulting
				from the carryback of a net operating loss will be deemed to have been made on
				the day on which the return for the loss year was filed or the due date of the
				loss year return (including extensions), whichever is later. (See
				23VAC10-20-200 E.)
Statutory Authority
§§ 58.1-203 and 58.1-311 of the Code of
					 Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 110 - INDIVIDUAL INCOME TAX › Section 23VAC10-110-110 - Transitional modifications to Virginia taxable income

Current through Register Vol. 40, No. 24, July 15, 2024
A. Employee annuity plans. Any amount
				contributed by an individual to an employee annuity plan prior to January 1,
				1972, which at the time of contribution was subject to Virginia income tax, may
				be subtracted from FAGI in computing Virginia taxable income during the taxable
				year in which the benefit is received by the individual or his beneficiary. The
				subtraction shall be equal to the cost basis of the contributions prior to
				January 1, 1972, and shall be allowed only to the extent that the benefits are
				included in FAGI in the year of recovery, and to the extent that the benefits
				have previously been taxed in Virginia.
B. Nondepreciable property. If any individual
				sells or exchanges nondepreciable property in a taxable year beginning on or
				after January 1, 1972, which was received by such individual prior to January
				1, 1972, and the basis of such property is greater for state purposes than for
				federal purposes, the excess may be subtracted from FAGI to the extent included
				therein in determining Virginia taxable income. If the state basis is less than
				the federal basis, no adjustment is required. This situation typically arises
				in the case of inherited nondepreciable property.
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 110 - INDIVIDUAL INCOME TAX › Section 23VAC10-110-130 - Exemptions and exclusions

Current through Register Vol. 40, No. 24, July 15, 2024
A.
				Generally. No tax is imposed upon any individual whose Virginia adjusted gross
				income, as defined in subsection B, for the taxable year is less than $3,000;
				nor is any tax imposed upon any individual and spouse whose combined Virginia
				adjusted gross income is less than $3,000. Persons who are not subject to the
				tax are not required to file a return; however, if any state income tax has
				been withheld, a return must be filed to obtain a refund.
B. Virginia adjusted gross income, defined.
1. Generally. As used in this regulation,
				"Virginia adjusted gross income" means FAGI for the taxable year plus the
				additions set forth in § 58.1-322B(B) of the Code of Virginia, and less
				the subtractions set forth in § 58.1-322C(C) of the Code of Virginia and
				the additional $400 deduction for taxpayers age 65 and over.
Example: A taxpayer, age 67, has FAGI for taxable year 1983
				  of $3,200 ($2,000 in wage income and $1,200 in interest and dividends). The
				  taxpayer had an additional $150 in interest which is exempt from federal but
				  not exempt from state tax. Since the taxpayer is over 65 years of age, he
				  qualifies for the additional $400 deduction. Therefore, his Virginia adjusted
				  gross income is $2,950 ($3,200 (FAGI) plus $150 (taxable interest) less $400
				  (additional deduction)). Virginia adjusted gross income includes both earned
				  and unearned income. The itemized and standard deductions, child care deduction
				  and personal exemption amounts, except as noted above, may not be subtracted
				  from FAGI in computing Virginia adjusted gross income.
2. Part-year residents. The Virginia adjusted
				gross income of a part-year resident is computed only with respect to income
				derived during his period of residence in Virginia determined in the manner
				prescribed in
				23VAC10-110-40 B.
3. Nonresidents. The Virginia adjusted gross
				income of a nonresident is computed as though such person had been a resident
				of Virginia during the full taxable year.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 110 - INDIVIDUAL INCOME TAX › Section 23VAC10-110-130 - Exemptions and exclusions

Current through Register Vol. 40, No. 24, July 15, 2024
A. Part-year residents. The Virginia adjusted gross income of a part-year resident is computed only with respect to income derived during the resident's period of residence in Virginia determined in the manner prescribed in 23VAC10-110-40 B.
B. Nonresidents. The Virginia adjusted gross income of a nonresident is computed as though such person had been a resident of Virginia during the full taxable year.
C. Military personnel.
1. Military pay. Armed forces personnel who are not domiciliary residents of Virginia and who maintain no place of abode within the Commonwealth are not subject to Virginia income tax on compensation received from armed forces service. However, a member of the armed forces who is a domiciliary resident of Virginia is subject to tax on his income in the same manner as any other resident.
2. Other income. Pursuant to the Soldiers' and Sailors' Relief Act ( 50 USC § 574 ), compensation for military or naval service of any person residing in Virginia solely by reason of compliance with military or naval orders is not subject to income taxation in Virginia, unless such person is a domiciliary resident of the Commonwealth. Similarly, military personnel who are domiciliary residents of Virginia do not attain a domicile elsewhere solely by virtue of their presence without the state in compliance with military or naval orders. Therefore, a Virginia resident who enters military service is subject to Virginia income tax on all of his taxable income, regardless of where the resident is stationed.
However, members of the armed forces who derive income from Virginia sources, excluding compensation for military or naval service, are subject to Virginia tax on such income in the same manner as any nonresident. For example, the compensation derived by an armed forces member from a part-time job is subject to Virginia income tax on such compensation. Similarly, a member of the armed forces may subject himself to taxation in Virginia by acquiring a new legal domicile herein.
3. Spouse of armed forces member. The residency status of a spouse of a member of the armed forces, who is not a member of the armed forces, shall be determined without regard to this section.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 110 - INDIVIDUAL INCOME TAX › Section 23VAC10-110-143 - Virginia taxable income; deductions

Current through Register Vol. 40, No. 24, July 15, 2024
The following items shall be deducted in determining Virginia
				  taxable income.
1. Itemized
				deductions.
a. Generally. Any taxpayer who
				itemizes his deductions for federal income tax purposes must also itemize
				deductions for Virginia income tax purposes. The federally allowable amount of
				itemized deductions (prior to the subtraction of the federal zero bracket
				amount) shall be subtracted from FAGI in determining Virginia taxable income,
				but must be reduced by any amount claimed as a deduction for income taxes paid
				to Virginia or any other state, locality, foreign country, or other taxing
				jurisdiction. (See subdivision 6 of
				23VAC10-110-142.)
b. Additional deduction for charitable
				mileage. The amount of itemized deductions allowed for federal income tax
				purposes shall be increased to allow a deduction for Virginia purposes of 18
				cents per mile for charitable contribution transportation. The additional
				Virginia deduction is allowed only with respect to transportation expenses
				allowed under IRC § 170 and only to the extent that such expenses are
				actually deducted for federal purposes.
The amount of charitable mileage expenses claimed for federal
				  purposes is increased to result in a deduction of 18 cents per mile for
				  Virginia purposes. If a person elects to compute the federal deduction based
				  upon actual expenses, the increased Virginia deduction is computed by
				  converting expenses to a per mile amount and adding to that an amount
				  sufficient to equal 18 cents per mile. The amount of the addition is the
				  additional Virginia deduction.
Example 1: Taxpayer A uses his automobile for charitable
				  purposes and determines annual expenses (gasoline, oil, etc.) attributable to
				  charitable usage to be $500, which is deducted as a charitable contribution for
				  federal tax purposes. A drove his automobile 4,350 miles in incurring the $500
				  in expenses, which results in a per mile cost of 11.5 cents. Therefore A is
				  entitled to an additional Virginia deduction of $282.75 computed as
				  follows:
($.18 - $.115) = $.065 X 4,350 = $282.75
If the standard federal mileage rate for charitable mileage
				  is used, the amount of the Virginia addition is the difference between the
				  standard rate and 18 cents per mile.
Example 2: Taxpayer B is entitled to deduct expenses
				  attributable to 5,555 miles of automobile use as a charitable contribution. B
				  utilizes the standard mileage rate (9¢ per mile for taxable year 1983) and
				  therefore is allowed a federal deduction of $500. B is entitled to an
				  additional Virginia deduction of $500 computed as follows:
($.18 - $.09) = $.09 X 5,555 = $500
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 110 - INDIVIDUAL INCOME TAX › Section 23VAC10-110-143 - Virginia taxable income; deductions

Current through Register Vol. 40, No. 24, July 15, 2024
A. For provisions defining the computation of deductions from Virginia taxable income see §
									58.1-322.03 of the Code of Virginia.
B. For the purposes of computing the amount of reduction required to federal itemized deductions for income taxes imposed by Virginia or any other taxing jurisdiction, the term "any other taxing jurisdiction" includes any other state, any locality, and any foreign country.
C. For the purposes of the Virginia standard deduction, the term "earned income" shall mean wages, salaries or professional fees, and other amounts received as compensation for professional services actually rendered, but does not include that part of the compensation derived by the taxpayer for personal services rendered by the taxpayer to a corporation that represents a distribution of earnings or profits rather than a reasonable allowance as compensation for the personal services actually rendered. This rule applies to dependents younger than 19 years of age and full-time students who are eligible to be claimed on their parent's return.
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 23VAC10-110-144 - Virginia taxable income; modifications and adjustments

Current through Register Vol. 40, No. 24, July 15, 2024
The modifications set forth in § 58.1-315 of the Code
				  of Virginia shall be added or subtracted, whichever is applicable, in
				  determining Virginia taxable income. (See also
				  23VAC10-110-110.)
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 23VAC10-110-170 - Husband and wife

Current through Register Vol. 40, No. 24, July 15, 2024
A.
				Generally. Where a husband and wife file separate federal income tax returns,
				their Virginia taxable incomes must be separately determined either by filing
				separate Virginia returns or by electing to file separately on a combined
				Virginia return. Where a husband and wife file a joint federal income tax
				return, they may elect to either:
(1) file a
				joint Virginia return and compute their Virginia taxable income jointly; or
(2) compute their Virginia taxable
				incomes separately on a combined return. Where only one spouse has income,
				either joint or separate returns may be filed; where both spouses have income
				they may file either jointly or separately on a combined return. If neither
				spouse files a federal return, they may elect to compute their Virginia taxable
				income either jointly or separately.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 110 - INDIVIDUAL INCOME TAX › Section 23VAC10-110-190 - Nonresident spouse

Current through Register Vol. 40, No. 24, July 15, 2024
A. Generally.
				Where one spouse is a resident of Virginia and the other is a nonresident, they
				must either:
(1) compute their Virginia
				taxable income jointly on a joint return; or
(2) compute their Virginia taxable incomes
				separately on separate returns.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 110 - INDIVIDUAL INCOME TAX › Section 23VAC10-110-220 - Credit for income taxes paid to another state; generally

Current through Register Vol. 40, No. 24, July 15, 2024
A credit for income tax paid to another state may be allowed
				  to residents and nonresidents who are liable for Virginia income tax, subject
				  to certain limitations and restrictions set forth below. The credit provided by
				  this section is applicable only to income tax paid to another state and does
				  not apply to taxes paid to any foreign country. This credit is further
				  inapplicable to taxes imposed by any city, county, regional or other local
				  taxing jurisdiction regardless of the fact that such local tax may be collected
				  by a state.
1. Taxable year. The
				credit for residents and nonresidents is allowable only with respect to income
				tax liability to another state incurred within the same taxable year as the
				liability is incurred to Virginia. For example, some states tax employee
				contributions to certain retirement plans at the time of contribution despite
				the fact that such amounts are not includible in federal adjusted gross income
				until withdrawn. Therefore an individual who is a nonresident of Virginia at
				the time he makes a contribution may be required to pay tax to his state of
				residence on such contribution. If the individual is a Virginia resident at the
				time the contributions are withdrawn and includible in FAGI, he will be liable
				to Virginia for tax on the amount withdrawn during the taxable year of
				withdrawal. In this instance, no credit may be claimed for tax paid to the
				former state of residence unless such tax liability was incurred within the
				same taxable year as the liability to Virginia.
2. Nonrefundable credit. The credit allowed
				to residents and nonresidents may not exceed the individual's Virginia tax
				liability, i.e., the credit is nonrefundable, and no excess may be carried
				forward or back to other taxable years.
Statutory Authority
§§ 58.1-203 and 58.1-332 of the Code of Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 110 - INDIVIDUAL INCOME TAX › Section 23VAC10-110-221 - Credit for income taxes paid to another state; residents

Current through Register Vol. 40, No. 24, July 15, 2024
A. Generally. Any
				resident of Virginia who has become liable for and paid income tax to another
				state may be eligible for a credit against his Virginia income tax liability
				for all or a portion of the liability to the other state, subject to the
				qualifications set forth in subsections B through D of this section.
B. Qualifying income.
1. Generally. Only an income tax paid to
				another state on earned or business income from sources outside of Virginia
				qualifies for the credit.
2. Earned
				income. For purposes of this credit, the term "earned income" shall mean wages,
				salaries, or professional fees and other amounts received as compensation for
				professional services actually rendered, but does not include that part of the
				compensation derived by the taxpayer for personal services rendered by him to a
				corporation which represents a distribution of earnings or profits rather than
				a reasonable allowance as compensation for the personal services actually
				rendered. Earned income does not include interest or dividend income, capital
				gains, income from investments, or similar types of passive income.
3. Business income. For purposes of this
				credit, the term "business income" shall mean income derived from an activity
				which constitutes a "business" for federal income tax purposes for which a
				federal Schedule C, E, or F must be filed. For example a sole proprietorship,
				provided that if the business incurred a loss such loss would be allowable
				under federal law. Thus income from hobbies and other activities not engaged in
				primarily for profit is not business income even though a Schedule C, E, or F
				may be filed for such activities.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 110 - INDIVIDUAL INCOME TAX › Section 23VAC10-110-226 - Qualified Equity and Subordinated Debt Investments Tax Credit; general credit provisions

Current through Register Vol. 40, No. 24, July 15, 2024
A. For
				taxable years beginning on or after January 1, 2001, a taxpayer shall be
				allowed a credit against the taxes imposed by Articles 2 (Individual Income
				Tax; § 58.1-320 et seq.) and 6 (Taxation for Estates and Trusts; §
				58.1-360 et seq.) of Chapter 3 of Title 58.1 of the Code of Virginia in an
				amount equal to 50% of such taxpayer's qualified investments made during such
				taxable year.
B. The aggregate
				amount of the credit that may be used by any taxpayer per taxable year shall
				not exceed the lesser of (i) the tax imposed for such taxable year or (ii)
				$50,000. The credit is not refundable and may not be carried back. Any credit,
				or portion thereof, not usable for the taxable year in which the credit was
				earned may be, to the extent allowable, carried over for the next 15 succeeding
				taxable years or until the total amount of the tax credit earned has been
				taken, whichever occurs first.
C.
				The total amount of tax credits available for the Commonwealth's fiscal year
				shall not exceed $5 million. In the event that the total eligible credit
				requests exceed the Commonwealth's annual fiscal limitation, each taxpayer
				shall be granted a pro rata amount as determined by the Department of Taxation.
				The amount of such prorated credit shall be determined by multiplying a
				fraction, the numerator of which shall be the credit requested by the eligible
				taxpayer for such year, and the denominator of which shall be the total credits
				requested by all eligible taxpayers for such taxable year, by the
				Commonwealth's annual fiscal limitation of $5 million.
D. The amount of any credit attributable to a
				qualified investment by a partnership, electing small business corporation (S
				corporation), or limited liability company shall be allocated to the individual
				partners, shareholders, or members, as they may determine.
The limitation in clause B (ii) of this section shall be
				  construed to allow individual partners, shareholders, or members to each claim
				  annual credits of $50,000.
Statutory Authority
§§ 58.1-203 and 58.1-339.4 of the Code of
					 Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 110 - INDIVIDUAL INCOME TAX › Section 23VAC10-110-227 - Qualified Equity and Subordinated Debt Investments Tax Credit; qualified business application procedure

Current through Register Vol. 40, No. 24, July 15, 2024
A. Every eligible entity desiring to be
				designated as a qualified business for purposes of this tax credit must make an
				application on the Application for Designation as a Qualified Business for the
				Qualified Equity and Subordinated Debt Investments Tax Credit to the Department
				of Taxation. Such application must be made prior to the issuance of any equity
				or subordinated debt; otherwise, the issuance shall not qualify for the tax
				credit, except as provided in subsection B of this section.
1. A qualified business application must be
				made at least 90 days prior to the issuance of any equity or subordinated debt
				to ensure that the Department of Taxation's determination regarding the
				entity's qualification will be made prior to the issuance date.
2. A qualified business application may be
				made less than 90 days prior to the issuance of any equity or subordinated
				debt; however, the Department of Taxation cannot ensure that its determination
				regarding the entity's qualification will be made prior to the issuance
				date.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 110 - INDIVIDUAL INCOME TAX › Section 23VAC10-110-228 - Qualified Equity and Subordinated Debt Investments Tax Credit; tax credit application procedure

Current through Register Vol. 40, No. 24, July 15, 2024
A.
				Eligible taxpayers who qualify for the equity and subordinated debt investment
				tax credit must make an application on the Taxpayer Application for the
				Qualified Equity and Subordinated Debt Investments Tax Credit to the Department
				of Taxation. For any taxable year that ends after January 1, and on or before
				December 31 of a calendar year, eligible taxpayers must submit an application
				and supporting documentation requesting the tax credit no later than April 1 of
				the subsequent calendar year. Subject to the provisions of
				23VAC10-110-227, for example,
				eligible taxpayers that have taxable years ending after December 31, 2000, and
				before January 1, 2002, an application and supporting documentation requesting
				the tax credit must be submitted no later than April 1, 2002.
B. Applications must be made on the form
				prescribed by the Department of Taxation, postmarked no later than the date
				specified in this section, and delivered to an address prescribed by the
				Department of Taxation.
C. Each
				taxpayer shall timely supply all information the Department of Taxation deems
				necessary to properly determine the allowable credit amount. Such information
				shall include, but shall not be limited to, the following:
1. A copy of the statement issued by the
				qualified business pursuant to
				23VAC10-110-227 D.
2. The taxable year during which the
				qualified investment was made.
3.
				The name, address, federal identification number, and Virginia account number
				of the taxpayer.
4. A certification
				by the taxpayer, under penalty of perjury, that the qualified investment meets
				all conditions outlined in § 58.1-339.4 of the Code of Virginia and these
				regulations.
5. In the case of a
				partnership, electing small business corporation (S corporation), or limited
				liability company, the application shall include the name, address, and social
				security number of each of its individual partners, shareholders, or members,
				and a statement as to how any allowable credit shall be distributed to each of
				its individual partners, shareholders, or members. Notification of the
				allowable credit amount shall be sent to the entity, and a copy of such
				notification shall be attached to each individual taxpayer's Virginia income
				tax return on which the credit is claimed.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 110 - INDIVIDUAL INCOME TAX › Section 23VAC10-110-229 - Qualified Equity and Subordinated Debt Investments Tax Credit; required equity and subordinated debt investment holding period

Current through Register Vol. 40, No. 24, July 15, 2024
A. Equity received in connection with a
				qualified business investment must be held by the taxpayer for at least five
				full calendar years following the calendar year for which a tax credit for a
				qualified investment is earned except in any of the following instances:
(i) the liquidation of the qualified business
				issuing such equity;
(ii) the
				merger, consolidation or other acquisition of such business with or by a party
				not affiliated with such business; or
(iii) the death of the taxpayer.