Filing your 2015 Virginia state return by the May 2 due date is essential to avoid penalties and interest that can accumulate quickly. Whether you file electronically—the fastest way to submit your federal and accompanying state returns—or prefer paper returns, having clear instructions and accurate tax information ensures you claim every refund you’re owed. This guide explains how to complete each required form, when to mail your return, and how to pay any balance due on time.
If you serve in the military, run a small business, or need general assistance, gathering your W-2s, 1099s, and other records is the first step. You may also include a letter requesting relief or additional tax information if you have unusual circumstances. Understanding which schedules to attach and how to calculate your Virginia Adjusted Gross Income will help you and your businesses meet filing requirements without delays.
In the following sections, you’ll find step-by-step instructions for completing Form 760 and its companion schedules, guidance on extension payments with Form 760IP, and tips for tracking your refund—whether by direct deposit or paper check. We’ll cover how to prepare your mail return, claim every eligible credit, and pay any tax owed so you stay compliant and minimize stress. Let’s begin filing your 2015 Virginia tax return accurately and efficiently.
Understanding Virginia Income Tax
Understanding Virginia income tax means knowing when to file your federal and state returns, how to calculate your Virginia Adjusted Gross Income, and which forms to use by the May 2 due date. This guide provides clear tax information, step-by-step instructions, and tips to pay, claim credits, and track your refund—whether you e-file or mail paper returns.
Who Needs to File
- Single filers: You must file a tax return if you were single in 2015 and your Virginia Adjusted Gross Income (VAGI) was $11,950. Filing ensures you meet your obligation and claim any refund if withholding or estimated payments exceed your liability.
- Married filing jointly: Couples must file jointly if their combined VAGI reached $23,900 or more. Filing jointly often provides higher deductions and credits, making it beneficial even if your income is near the threshold.
- Married filing separately: If you are married but choose to file separately, you must file when your VAGI hits $11,950 or more. Separate filing can affect credits and deductions, so review both options before deciding. Even if your income falls below these thresholds, file a return to get back any withheld tax or estimated payments.
Filing Deadlines and Extensions
- Standard due dates: Calendar-year filers had until May 2, 2016, to submit their 2015 return; fiscal-year filers’ deadline was the 15th day of the fourth month after their year-end date. Individuals living abroad had until July 1, 2016.
- Automatic six-month extension: Virginia grants a six-month extension to file automatically—no application required. This extension applies only to filing, not payment. Pay at least 90% of your tax due by the original May 2, 2016, deadline to avoid penalties and interest.
Key Changes for 2015
- Conformity date update: Virginia conformed to the Internal Revenue Code as of December 31, 2014, advancing from January 2, 2013. This affects deductions and credits tied to federal law.
- Subtraction for discharged student loans: Income discharged due to a borrower’s death became subtractable for Virginia in 2015, reducing your taxable income if applicable.
- Long-term capital gain subtraction: Investments in qualifying high-technology businesses can subtract certain long-term capital gains through June 30, 2020, an extension from the 2015 sunset.
- Land preservation and open-space subtractions: The land preservation tax credit cap dropped from $100,000 to $20,000. The open-space gain subtraction was sunsetted for transactions after January 1, 2015.
What Forms to Use
Individual Filers
- Form 760 (Resident Return): Use Form 760 if you were a full-year Virginia resident. This covers all income sources and applies statewide deductions and exemptions.
- Form 760PY (Part-Year Return): If you moved into or out of Virginia during 2015, use 760PY to report income earned while a resident and income from Virginia sources when a nonresident.
- Form 763 (Nonresident Return): Nonresidents with Virginia-source income file Form 763 to report and pay tax only on earnings tied to Virginia.
Common Schedules and Attachments
Schedule ADJ for additions or subtractions to federal AGI
Schedule ADJ is used to report any additions or subtractions to your federal adjusted gross income (AGI) when calculating your Virginia Adjusted Gross Income (VAGI). This schedule matters because Virginia allows specific adjustments—such as particular municipal bond interest or state tax refunds—that can lower your taxable income and reduce your state tax liability.
Schedule CR for claiming state tax credits
Schedule CR is for claiming Virginia state tax credits, including those for low-income individuals, solar energy equipment, or historic rehabilitation projects. Utilizing these credits directly reduces your tax due on a dollar-for-dollar basis, so completing Schedule CR accurately can significantly lower the amount you owe.
Schedule OSC for credit on taxes paid to another state
Schedule OSC enables you to claim a credit for income taxes paid to another state on income that Virginia also taxes. This prevents double taxation when you earn income out of state. This ensures that you are not penalized twice and helps lower your Virginia tax bill by the amount paid to other jurisdictions.
Schedule VAC for voluntary contributions.
Schedule VAC is the form for voluntary contributions to designated Virginia funds, such as the Literary Fund, breast cancer research, or veterans’ services. Your contributions support important state programs, and while they don’t reduce your tax owed, they appear on your return to document your support. They may be refundable if you overpay.
Form 760IP for extension payments
Form 760IP is the payment voucher used when you file your return on the automatic six-month extension. Filing this form with your payment ensures the Department of Taxation applies your funds correctly toward your 2015 liability, helping you avoid late-payment penalties and interest on any balance due.
Small Business Filers
- Form 500 (C Corporation Return): C corporations that are organized or doing business in Virginia use Form 500 to compute corporate income tax.
- Form 502 (Pass-Through Entity Return): S corporations, partnerships, LLCs, and other pass-through entities file Form 502 by April 15, 2016, to report income and nonresident withholding.
- Schedule C Reporting for Sole Proprietors: Sole proprietors and single-member LLCs report business income on Schedule C of the federal return, carried to your Virginia Form 760.
Step-by-Step Instructions to Complete Your Return
Step 1: Gather Your Documents
- Obtain your completed 2015 federal return and all W-2s, 1099s, and VK-1s showing Virginia tax withheld.
- Collect records of estimated tax or Form 760IP extension payments and documentation for deductions or credits.
Step 2: Complete Personal Information
- Enter your legal name, mailing address, Social Security number, and date of birth exactly as they appear on your federal return.
- Fill in your locality code (see Form 760 instructions, p. 47) and select your filing status; include your spouse’s details for joint returns.
Step 3: Calculate Virginia Adjusted Gross Income (VAGI)
- On Line 1 of Form 760, enter your Federal Adjusted Gross Income from your federal return.
- Use Schedule ADJ to report any additions on Lines 2–3 and list subtractions (e.g., age deduction, Social Security benefits) on Lines 4–8.
- Total these amounts and arrive at your VAGI on Line 9.
Step 4: Determine Taxable Income and Compute Tax
- On Lines 10–16, claim personal exemptions and either the standard or itemized deduction to calculate your taxable income.
- Use the tax table or rate schedule on Line 17 to find your base tax, adjust for any spouse’s separate tax on Line 18 (if filing jointly), and enter your net tax on Line 19.
Step 5: Apply Credits and Payments
- Report Virginia income tax withheld, estimated, and extension payments on Lines 20–23.
- Enter credits from Schedule CR (state credits) and Schedule OSC (credits for taxes paid to another state) on Lines 24–27.
Step 6: Calculate Balance Due or Refund
- On Lines 28–30, compare total payments and credits to your net tax and record any amount owed or overpayment.
- On Lines 31–38, elect to apply an overpayment to your 2016 tax, make voluntary contributions, or request a refund via direct deposit or mailed paper check.
Step 7: Sign, Date, and Assemble Your Return
- Sign and date your Form 760—both spouses must sign joint returns—and include preparer information if you used a tax professional.
- Attach all W-2s, 1099s, VK-1s, the required schedules (ADJ, CR, OSC, VAC), and any payment vouchers.
Submission Methods
Electronic Filing Options
- Virginia Free File: Virginia Free File offers free preparation and e-filing of your federal and state returns for eligible taxpayers. Using this service, you avoid mailing paper returns, save on postage, and get the fastest way to file and claim your refund. Simply visit www.tax.virginia.gov, follow the online instructions, and submit before the due date to avoid penalties and interest.
- Free Fillable Forms: Fillable Forms let taxpayers enter their tax information directly into the electronic Form 760 and accompanying schedules. These online forms perform basic calculations, help you complete each line accurately, and allow you to file your return electronically. This method combines the flexibility of paper returns with the speed of e-filing, and it’s available regardless of income.
- Paid e-File Software: Commercial tax software and professional preparers provide step-by-step guidance through each form, including Form 760IP for extension payments or specialized schedules for small businesses. Although a fee applies, paid e-file software often includes live assistance, error checks, and options to prepare a letter requesting relief or additional tax information if you’ve faced unusual circumstances. This option is ideal if you want extra support to calculate credits and deductions and ensure accuracy.
Paper Filing Procedures
- Printing and Completing Forms: If you choose paper returns, download and print Form 760, Form 760PY, or Form 763 from www.tax.virginia.gov. Use black ink, write legibly, and attach all W-2s and 1099s. Complete and attach all VK-1 forms and any required schedules. Follow the instructions on each form to claim credits and calculate any tax owed.
- Where to Mail Your Return: Mail your completed return and payment voucher by the due date to the appropriate address:
- With payment:
- Virginia Department of Taxation
P.O. Box 760
Richmond, VA 23218-0760
- Without payment (refund or zero balance):
- Virginia Department of Taxation
P.O. Box 1498
Richmond, VA 23218-1498
Be sure to include sufficient postage, especially if you’re enclosing a check to pay any balance. Sending your paper return early ensures the Department receives it by the deadline and minimizes late-filing fees and additional interest.
Special Filing Considerations
- Military Personnel: Active-duty military members outside Virginia may qualify for an extended filing date. Follow the instructions on Form 760 to indicate your military status, and attach any required orders to claim the extension.
- Small Businesses and Pass-Through Entities: Businesses filing Forms 500 or 502 must e-file unless granted a waiver. Properly filing your corporate or pass-through entity tax return ensures you meet all withholding and nonresident payment obligations. Consult Virginia’s business tax guides for assistance on estimated tax payments, electronic funds transfer, and claiming any credits your business may qualify for.
How to Make a Payment
Online Payment Methods
Mail-In Payments
- Check or money order: Payable to “Virginia Department of Taxation.” On the memo line, write your SSN and “2015 Form 760.”
- Extension payment: To avoid late-payment penalties when using the automatic six-month extension, submit Form 760IP by May 2, 2016.
Payment Deadlines and Penalty Avoidance
Pay at least 90% of your tax liability by May 2, 2016. For 2016 estimated payments, follow the standard April 15, June 15, September 15, and January 15 schedule.
How to Track Your Refund or Balance Due
Checking Your Refund Status
- Online tool: Visit www.tax.virginia.gov and click “Where’s My Refund.” You’ll need your SSN and exact refund amount.
- Phone hotline: Call (804) 367-2486 for automated status updates. Have your SSN and refund amount ready.
Expected Processing Times
- E-file with direct deposit: You can expect your refund in about two weeks when you e-file your Virginia return and choose direct deposit. This is the fastest way to file and receive money because electronic submission speeds processing, and direct deposit eliminates mailing delays.
- E-file with paper check: If you e-file but request a paper check, allow roughly three weeks for your refund to arrive. Electronic filing still accelerates data entry, but printing and mailing a check adds an extra week compared to direct deposit.
- Paper return with direct deposit: Filing a paper return and opting for direct deposit typically takes about eight weeks. The manual processing of paper returns delays the overall timeline, but opting for direct deposit still shortens the time required to receive your funds.
- Paper return with a check: For those who mail a paper return and request a paper check, anticipate around nine weeks before receipt. This method combines manual processing of your form with check printing and postage, making it the slowest refund option.
Final Filing Checklist
Verify personal information
Double-check that your return's Social Security numbers, names, and dates match your federal and official records. Accurate personal data prevents processing delays and ensures your refund or balance due is applied correctly.
Sign and date your return
Be sure you—and your spouse, if filing jointly—sign and date every copy of your return and any required schedules. Unsigned or undated returns are not considered valid and will be returned, potentially missing the due date.
Attach required documents
Include all W-2s, 1099s, VK-1s, and any schedules such as ADJ, CR, OSC, or VAC. Attaching complete documentation avoids requests for additional tax information and helps the Department process your return without interruption.
Include payment or voucher
If you owe tax, enclose your check or money order with the payment voucher, or pay online. Paying 90% of your liability by the due date helps you avoid penalties and interest on any unpaid balance.
Keep copies for your records
Retain a complete copy of your filed return, all schedules, receipts, and proof of payment or mailing for at least three years. These records are essential if the Department requests clarification or you need to file an amended return.
Confirm mailing details
If you file paper returns, use the correct Virginia Department of Taxation address and affix sufficient postage. An incorrect address or insufficient postage can result in late filings and additional interest charges.
E-file requirements for businesses
Small businesses filing Forms 500 or 502 must e-file unless they obtain a waiver. Electronic submission for corporations and pass-through entities offers faster processing and immediate confirmation that your return was received.
Frequently Asked Questions
What if I missed the filing deadline?
Suppose you miss the original due date for your Virginia state return. File and pay as soon as possible to limit penalties and interest. You can submit a letter requesting relief or additional tax information, but Virginia automatically grants a six-month extension to file, not to pay. Any tax not paid by May 2, 2016, will accrue interest until fully paid, so mail your form and payment promptly.
Can I e-file for free?
Virginia’s Free File program lets you e-file your federal and accompanying state returns online at no cost. Free Fillable Forms also allow taxpayers to enter figures directly into the electronic form. This is the fastest way to file and receive your refund and avoid paper returns. Visit the Department’s website for full instructions and assistance with tax information entry.
Which deductions do filers often overlook?
Many taxpayers forget to claim subtractions on Schedule ADJ that reduce their Virginia Adjusted Gross Income. Commonly missed items include the age deduction, Social Security, Tier 1 Railroad Retirement benefits, and discharged student-loan income. Review your federal return and state return instructions carefully. Properly claiming these adjustments can lower your tax owed and maximize your refund.
How do I request an extension payment?
To avoid late-payment penalties and interest, pay at least 90 percent of your estimated tax by the original due date, May 2, 2016, to avoid late-payment penalties and interest 6. Complete Form 760IP and include payment with your extension payment voucher. You can pay electronically or mail a check or money order to the Virginia Department of Taxation. Follow the form instructions closely and keep proof of mailing for your records.
Can I file a joint return if I moved mid-year?
If one spouse was a full-year resident and the other a part-year resident, use Form 760PY to file a joint Virginia return. On your state return, you may also treat a nonresident spouse as a resident. Before you file, review the federal return filing status and Virginia instructions to ensure you choose the correct form and maximize available credits for your combined income.
Which form does my small business need?
C corporations use Form 500 to file and pay Virginia corporate income tax. Pass-through entities—S corporations, partnerships, and LLCs—file Form 502 by the April 15 due date. Sole proprietors and single-member LLCs report business income on Schedule C of their federal return and then transfer that. Then, they refer to Form 760—Review Virginia’s instructions and tax information guides for detailed assistance.
How do I amend a mistake on my return?
To correct errors on your filed return, submit an amended state return using the form you originally filed (760, 760PY, or 763). Check the “Amended Return” box at the top, attach all revised schedules, and include a letter requesting any additional refund or reporting extra tax owed. Mail the amended form and payment (if applicable), and Virginia will recalculate interest and any refund due.
