What Virginians need to know about this year’s one-time tax rebate

The Virginia Department of Taxation said eligible taxpayers will get their rebates by Oct. 31.
Eligible taxpayers will be able to get their rebate payments at the end of October.
Published: Aug. 12, 2022 at 5:57 PM EDT|Updated: Aug. 12, 2022 at 6:26 PM EDT

RICHMOND, Va. (WWBT) - This fall, taxpayers in Virginia may get a check in the mail or money deposited into their bank accounts if they’re eligible for this year’s one-time tax rebate.

The rebate is part of a bipartisan plan passed through the state budget in this year’s General Assembly session.

The Virginia Department of Taxation’s website lists more information regarding those rebate payments for eligible taxpayers. According to the website, not all taxpayers will qualify for this.

Officials said if you had a tax liability last year, you would receive up to $250 if you filed individually and up to $500 if you filed jointly.

Tax liability is the amount of tax you owe throughout the year minus any credits, deductions or subtractions. The website lists examples of credits like those for taxes you paid to another state or the credit for low-income individuals.

“What the department of taxation has defined the tax liability to be is your actual tax on 2021 income minus any credits you may have taken, such as a credit for taxes paid to states other than Virginia,” said Ryan Beethoven-Wilson, a senior tax manager with Keiter.

Beethoven-Wilson used the following example to demonstrate what this rebate could look like for joint filers.

“If somebody has a Virginia tax of a $1,000. Let’s say it’s a married couple. Their Virginia tax is going to be $1,000. So let’s say that they have a $900 credit on their tax return because they paid $900 in tax attributable to a business they operate in North Carolina, which is a fairly common occurrence,” Beethoven-Wilson said. “Their net Virginia tax after that credit is $100, so in that case, they will be eligible for a $100 rebate versus the $500 rebate.”

Beethoven-Wilson also adds these amounts could be different if you have debt you owe to state or local agencies.

“If you have a state or local outstanding obligation, I think child support is the easiest example; this rebate is going to be used to satisfy that obligation before any cash gets sent to the taxpayer,” he said.

If you’re eligible and file your taxes by July 1, rebates will be sent by Oct. 17, which means you should get this rebate by Oct. 31.

“For taxpayers who file between July and November, their rebates will be received later,” said Beethoven-Wilson.

Officials also add some people will get their rebates through direct deposit while others will get a paper check in the mail.

If you got your tax refund through your direct deposit, you would most likely get your rebate through the same bank account, with the description “VATXREBATE.”

All other eligible taxpayers will get their rebates through a paper check in the mail.

Officials are also urging people to make sure their mailing address is updated.

If the bank account where you received your Virginia refund by direct deposit is closed, you can call the Virginia Department of Taxations at (804)-367-8031. Officials can mark it as an invalid account, and the rebate check will be sent in the mail.

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