§ 58.1-339.8(B)(1) and the earned income tax credit under Va. Low income tax credits.Īpplicable to taxable years beginning on and after January 1, 2022, the bill provides that the low income tax credit under Va. No subtraction will be allowed if a credit, exemption, subtraction, or deduction is claimed for the same income pursuant to any other provision of Virginia or federal law. Department of Defense, and military benefits paid to the surviving spouse of a veteran of the U.S. Armed Forces under the Survivor Benefit Plan program established by the U.S. “Military benefits” means any military retirement income received for service in the Armed Forces of the United States, qualified military benefits received pursuant to IRC § 134, benefits paid to the surviving spouse of a veteran of the U.S. The bill enacts a subtraction for certain military benefits received by an individual age 55 or older for specified periods in the following amounts: for taxable years beginning on and after January 1, 2022, but before January 1, 2023, up to $10,000 of military benefits for taxable years beginning on and after January 1, 2023, but before January 1, 2024, up to $20,000 of military benefits for taxable years beginning on and after January 1, 2024, but before January 1, 2025, up to $30,000 of military benefits and for taxable years beginning on and after January 1, 2025, up to $40,000 of military benefits. Subtraction for military retirement income. The increase will take effect for the 2023 tax year contingent on the Tax Department certifying annual revenue growth, adjusted for the impact tax policy changes, of at least 5% for the 12-month period of July 2022 through June 2023 if the 5% growth rate is not met, the standard deduction for taxable year 2023 will be $7,500 for single individuals and $15,000 for married persons. The increase will take effect for the 2022 tax year contingent on the Tax Department certifying annual revenue growth, adjusted for the impact tax policy changes, of at least 5% for the 6-month period of July 2022 through December 2022 if the 5% growth rate is not met, the standard deduction for taxable year 2022 will be $7,500 for single individuals and $15,000 for married persons. Standard deduction amounts increased.įor taxable years beginning on and after January 1, 2022, but before January 1, 2026, the standard deduction is $8,000 for single individuals and $16,000 for married persons (one-half of such amounts in the case of a married individual filing a separate return). No interest will be paid on any of these refunds. Refunds for taxpayers who file a return on or after July 1, 2022, will be issued on or after July 1, 2022, but no later than four months after the return is filed. Refunds for taxpayers who file a return before July 1, 2022, will be issued on or after July 1, 2022, but before October 17, 2022. A refund will be subject to collection under the provisions of the Setoff Debt Collection Act. The refund will only be up to the amount of tax liability after the application of any deductions, subtractions, or credits. § 58.1-309, for taxable years beginning on and after January 1, 2021, but before January 1, 2022, an individual filing a return on or before November 1, 2022, or married persons filing a joint return on or before November 1, 2022, will be issued a refund in an amount up to $250 for an individual, or $500 for married persons filing a joint return. In addition to any refund due pursuant to Va. On and after January 1, 2023, no state sales tax on food purchased for human consumption or essential personal hygiene products can be imposed. Sunset dates for credits and exemptions are addressed, as well as limitations on the land preservation tax credit, neighborhood assistance tax credit, historic rehabilitation tax credit, and food crop donation tax credit. The bill advances Virginia conformity to the federal Internal Revenue Code as in effect on December 31, 2021, with limited exceptions. The bill re-enacts provisions relating to intangible company addback, ABLE savings trust account contributions, discounts and allowances, sales tax exemption for internet service providers, Stafford County admissions tax, recordation fees, the provider coverage assessment, the annual vehicle registration fee, and the cigarette tax, tobacco products tax and liquid nicotine tax. The bill eliminates the state tax on groceries beginning in 2023, provides an individual income tax rebate, increases standard deduction amounts for tax years 2022 through 2025 contingent on certified annual revenue growth, enacts a subtraction for certain military retirement income, enacts an optional refundable earned income tax credit, modifies housing opportunity tax credit provisions and sets maximum caps, and extends several sales and use tax exemptions. Virginia Governor Glenn Youngkin signed legislation enacting the state budget for the 2022-2024 biennium.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |