RICHMOND, Va. — Virginia’s governor and the Virginia Department of Taxation are reminding Virginians who have not yet filed their Virginia individual income taxes to take action now if they want to qualify for a refund of up to $110.

Taxpayers must file by midnight on Monday, July 1, to qualify for the Tax Relief Refund, state officials said. The refund is the result of state legislation passed by the 2019 Virginia General Assembly in response to the federal Tax Cuts and Jobs Act. An individual filer could receive up to $110 and a married couple filing a joint return could receive up to $220. The refund is not to exceed the taxpayer’s liability, and the law requires the checks to be mailed out by October 15.

“With the filing deadline fast approaching, I urge all Virginians who still need to submit state individual income taxes to file now so they can qualify for the Tax Relief Refund,” Gov. Ralph Northam said. “Our state tax employees are hard at work to process returns this tax season and filing on time will help ensure taxpayers receive payment as quickly as possible.”

“Individual income tax returns are due at midnight on July 1, which is now less than two weeks away,” Secretary of Finance Aubrey Layne said. “We encourage Virginia taxpayers to take advantage of the variety of filing options and complete their taxes before the deadline to avoid any penalties or delays in receiving their refund.”

“We don’t want anyone who hasn’t filed to wait until the last minute to do so,” said Tax Commissioner Craig M. Burns. “In some cases, we may request additional documentation from taxpayers. We’ll need to get that extra information as soon as possible to quickly process returns.”

Local lawmakers supported the Tax Relief Fund.

“Conforming Virginia’s tax code with the federal code was a top priority for us,” Delegate James W. “Will” Morefield II, R-Tazewell, said. “Not conforming would have resulted in Virginians paying higher taxes. We passed a $1 billion tax relief package, the most significant tax relief plan in at least 15 years and the second largest tax cut in Virginia history.”

The legislation we passed will provide roughly $420 million in tax refunds to Virginia taxpayers in October of 2019. This means individuals will receive up to $110 and couples will receive up to $220. The plan also increase the standard deduction by fifty percent beginning in tax year 2019, providing $86 in tax relief for an individual or $173 for a married couple,” Morefield stated. “We will maintain the current rules for state and local taxes (SALT), so homeowners are not hit with an unexpected tax increase at the state level.:

“We also included key business tax provisions for job creators. The total package guarantees at least $976 million in tax relief, or about $400 for every family in the Commonwealth,” Morefield said. “We will ensure that all additional revenues from the permanent provisions of Tax Cuts and Jobs Act are placed in the Commonwealth’s cash reserve fund. Maintaining a significant cash reserve fund is crucial in maintaining our AAA bond rating.”

Sen, Ben Chafin, R-Tazewell said he also supported the legislation.

“During the General Assembly Session, I sponsored legislation with my conservative colleagues in the Senate and House to provide one of the largest packages of tax relief in Virginia history amounting to a $1.2 billion tax cut for hardworking families,” Chafin stated. “As part of the legislation, the Taxpayer Relief Fund was set up to return to the taxpayers an estimated $450 million in the form of one time rebates.

“In order to qualify for the rebates expected this fall, taxpayers must file their Virginia returns before July 1st. If you have not yet filed, make sure to do so quickly in order to take advantage of this historic tax relief,” Chafin said. 

Some factors could reduce the Tax Relief Refund including:

• If you owe Virginia state taxes for 2018 or for any previous tax years, the Department of Taxation will withhold all or part of the refund and apply it to outstanding tax bills; and

• If you owe money to Virginia local governments, courts, other state agencies, or the IRS, the Department of Taxation will withhold all or part of the refund to help pay these debts.

State officials had other tips to help the Department of Taxation process tax returns more smoothly—ensure your name, address and Social Security number are correct on your return; file electronically; and include your Virginia driver’s license or Virginia identification card number on your return.

Visit the Department of Taxation website for more information.

— Contact Greg Jordan at gjordan@bdtonline.com