Governor Glenn Youngkin announced on Wednesday that Virginia will issue another round of tax rebates, marking the third consecutive year of such relief since he took office. The governor attributed the move to strong job growth and a budget surplus exceeding $10 billion, which is funding a record $9 billion in overall tax relief.
However, not all residents will receive a payment. Eligibility is contingent on having had a state tax liability for the previous tax year. For those who qualify, individual filers will receive up to $200, while those filing jointly are eligible for up to $400.
To receive the rebate, taxpayers must file their 2024 state taxes by the November 3 deadline. According to Virginia Tax, individuals who filed before July 1 can expect their rebate to be sent by October 15 and arrive by the end of the month. Payments will be delivered via direct deposit or paper check, matching the method used for the recipient’s tax refund.
A key provision is that any outstanding debts owed to Virginia Tax or other state and local agencies will be deducted from the rebate first. For example, unpaid tax bills from previous years or delinquent car taxes will be settled before any remaining balance is issued to the taxpayer.
According to David Kembel, owner of Kembel Tax Service, several groups of residents will generally not qualify for the rebate. Individuals are typically ineligible if they:
* Had no tax liability in the previous year, often because tax credits reduced their owed amount to zero.
* Received income exclusively from sources not taxed by Virginia, such as Social Security, unemployment, or disability benefits.
* Had an adjusted gross income below the state’s filing threshold, which is $11,950 for individuals and $23,900 for joint filers.
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