Filing your Virginia tax return for the 2020 tax year is an important part of meeting your tax responsibilities as a resident, part-year resident, or nonresident with Virginia-source income. Understanding the process helps taxpayers avoid costly mistakes, claim eligible deductions or credits, and stay in compliance with Virginia and local tax laws. This guide serves as an interactive guide designed for individuals, small business owners, and gig economy workers who need clear, step-by-step instructions.
For the 2020 tax year, the Virginia filing deadline was extended to May 17, 2021, in response to COVID-19, giving taxpayers an extra week compared to the federal extension. Virginia also offered its standard automatic six-month filing extension, though paying taxes owed was still due by the original deadline to avoid interest and penalties. Knowing these dates is essential, whether you are a wage employee, rideshare driver, food delivery contractor, or someone managing small business basics.
This guide is based on official Virginia Department of Taxation resources and will walk you through each process step—from gathering your tax information to submitting your forms. You will learn how to file using paper forms or tax preparation software, pay any amount due, and track your refund. By following these instructions, you can complete your Virginia tax return accurately and with confidence.
Virginia’s state income tax system is based on a progressive rate structure, meaning the percentage you pay increases as your income rises. For the 2020 tax year, Virginia maintained its four tax brackets, with rates ranging from 2% to 5.75%. These rates applied to all taxpayers, whether they were full-year residents, part-year residents, or nonresidents with Virginia source income. Understanding these rates is essential for accurate filing and avoiding overpayment or underpayment.
The state’s tax process is closely tied to the federal system through conformity with the Internal Revenue Code. For 2020, Virginia conformed to the federal tax code as of December 31, 2020, incorporating many federal changes but excluding specific provisions, such as those enacted under the American Rescue Plan Act of 2021. This conformity ensured consistency for taxpayers when calculating their Virginia adjusted gross income, but it also meant some federal tax benefits—particularly related to unemployment compensation—had to be added back for Virginia purposes.
COVID-19–related adjustments also shaped Virginia tax laws in 2020. While the state aligned with many federal relief measures, it maintained specific differences that affected deductions, credits, and taxable income. Taxpayers should carefully review the official tax information provided by the Virginia Department of Taxation or use reputable tax preparation software to ensure compliance. By understanding these key points, taxpayers can navigate the Virginia tax system more confidently and reduce the likelihood of errors when they file their return.
Filing a Virginia tax return is required for most taxpayers with Virginia source income, but the exact rules depend on your residency status and income level. Virginia recognizes three types of filers: full-year residents, part-year residents, and nonresidents. Full-year residents must file if they meet minimum income thresholds, while part-year residents file if they lived in Virginia for part of the year and earned income during that time. Nonresidents must file if they received Virginia source income, such as wages from an in-state employer or revenue from a Virginia-based business.
The income thresholds for the 2020 tax year were $11,950 for single filers or married individuals filing separately and $23,900 for married couples filing jointly. These limits apply to Virginia adjusted gross income, which is based on your federal adjusted gross income with Virginia-specific additions and subtractions. Even if you earned less than these amounts, it may be worth filing to claim a refund for any Virginia income tax withheld from your pay. This is especially true for wage employees, rideshare drivers, and food delivery contractors who follow gig work schedules but still have taxes withheld.
Beyond income thresholds, your tax responsibilities may also be shaped by your work situation. For example, self-employed individuals, freelancers, and small business owners—including those handling small business basics such as quarterly estimated payments—must report income even if it is irregular. Understanding who must file ensures you remain compliant with Virginia tax laws and helps prevent missed opportunities to claim deductions or credits you are entitled to under the law.
For the 2020 tax year, the Virginia Department of Taxation extended the individual income tax filing deadline to Monday, May 17, 2021. This extension aligned with the federal deadline change and gave taxpayers an additional week to file without incurring late filing penalties or interest, provided any tax owed was paid by that date. The change was part of Virginia’s COVID-19 relief measures, designed to ease the process for individuals and businesses affected by the pandemic.
Virginia also offers an automatic six-month filing extension to all taxpayers. No application is required for this extension, but it applies only to filing your return—not to paying your taxes. To avoid late payment penalties, you must pay at least 90% of your total tax liability by the original due date, even if you plan to file later. Interest accrues on unpaid balances starting from the original deadline, so making timely payments is essential.
If you miss the filing deadline without an extension, Virginia imposes penalties of 6% per month (or part of a month) on the unpaid balance, up to a maximum of 30%, plus interest. Planning ensures you meet the deadlines, whether you file early, on time, or under the automatic extension. By staying aware of key dates, taxpayers can avoid unnecessary penalties and keep their Virginia tax return process running smoothly.
When preparing your 2020 Virginia tax return, you must use the correct forms and include all required schedules to ensure accurate processing. Full-year residents generally file Form 760, part-year residents file Form 760PY, and nonresidents file Form 763. Depending on your situation, you may also need schedules such as A, ADJ, CR, VAC, or OSC, along with supporting W-2s, 1099s, or VK-1s. Access official forms on the Virginia Tax Forms & Instructions page, or use the What Form Should I File?
Main Forms
Common Schedules
Required Supporting Documents
Completing the correct forms and schedules is a key part of the tax return process. Whether you are a wage employee, rideshare driver, or small business owner, having all your tax information ready before you file will make the process smoother and help prevent delays in receiving your refund.
Filing your Virginia tax return is easier when you follow a structured process. Use this guide to gather your tax information, complete the necessary forms, and submit your return on time.
Before You Begin:
Gather all the required documents to ensure accuracy and save time during the filing process:
Completing Form 760 – Virginia Resident Return
By following this process, taxpayers can complete their returns accurately and avoid delays in processing. Using tax preparation software can also help ensure that all calculations and forms meet state requirements.
Virginia taxpayers can choose between electronic filing (e-file) and paper filing. Each method has its own benefits, but e-filing is generally faster and more secure and is recommended for most individuals and businesses.
Electronic Filing (E-file)
E-filing is the quickest way to submit your Virginia tax return and receive your refund. Options include:
Benefits of E-file
Paper Filing:
If you prefer paper filing, you must mail your completed return to the appropriate address:
You can also submit your return to your local Commissioner of the Revenue, which may be convenient for certain taxpayers. Whether you file electronically or on paper, ensure your forms are complete and signed to prevent delays in the process.
If you owe taxes with your 2020 Virginia return, the Virginia Department of Taxation offers several convenient payment methods. Choosing the correct method ensures your payment is processed on time and helps you avoid penalties and interest.
Online Payment Methods
Other Payment Methods
Deadlines to Avoid Penalties
To avoid late payment penalties, taxpayers must pay at least 90% of their total tax liability by the original due date—May 17, 2021, for the 2020 tax year. Penalties accrue at 6% per month (up to 30%) on unpaid balances, along with interest from the original deadline. Making payments on time protects your refund eligibility and helps you remain in compliance with Virginia tax laws.
The Virginia Department of Taxation offers online and phone tools to help taxpayers check the status of their refund or review any balance owed. These tools can help you plan your finances and address any issues quickly.
Checking Your Refund Status
Processing Times
Reasons for Delays
Checking Your Balance
If you owe taxes, you can review your account balance through Virginia’s Individual Online Services. This platform also allows you to set up a payment plan, ensuring you can manage your tax responsibilities without incurring additional penalties.
Avoiding common errors can help taxpayers file their Virginia tax return accurately, receive refunds faster, and stay compliant with Virginia tax laws.
Reviewing these points before you file can make the process smoother and help ensure your return is processed without unnecessary delays.
Before you submit your 2020 Virginia tax return, review this checklist to ensure all requirements are met. Completing these steps helps taxpayers avoid delays and ensures compliance with Virginia tax laws.
If you missed the extended deadline, file your Virginia tax return as soon as possible to reduce penalties and interest. Virginia tax laws impose a 6% monthly penalty (up to 30%) plus interest on unpaid balances. Even if you cannot pay in full, filing promptly allows you to set up a payment plan and comply with your tax responsibilities.
Eligible taxpayers can use the Virginia Free File program, which offers no-cost federal and state filing for those meeting income and other criteria. Free fillable forms are also available to all taxpayers. Tax preparation software can simplify the process, reduce errors, and help you claim deductions or credits you qualify for under Virginia tax laws while ensuring your return is filed on time.
Commonly overlooked deductions include the Age 65 and Older Deduction, continued College Savings Plan, specific military pay exclusions, and long-term care insurance premiums. Taxpayers sometimes forget to claim credits for taxes paid to another state. Reviewing local tax laws and Virginia’s deduction list before you file helps ensure you claim all benefits and maximize your refund or reduce your balance due.
Virginia grants an automatic six-month extension to file your return, requiring no separate application. However, you must pay at least 90% of your tax liability by the original due date to avoid penalties and interest. Taxpayers can use tax preparation software, mail payments, or pay online through the Virginia Department of Taxation to meet extension requirements and comply with Virginia tax laws.
Part-year residents can often file jointly using Form 760PY if both spouses meet eligibility criteria. If one spouse was a full-year resident and the other a nonresident, you may elect to treat both as full-year residents to file jointly. Reviewing Virginia tax laws and your tax information helps ensure the filing status you choose is both accurate and beneficial.
To amend, complete a new Form 760 with updated information and mark the “Amended Return” oval. Include a reason code and supporting documents. File within three years of the original deadline to claim a refund or within one year of a federal change. Following Virginia tax laws for amended returns ensures your corrections are processed efficiently and your taxpayer record remains accurate.
Respond promptly to any letter from the Virginia Department of Taxation. These letters may request additional tax information, identity verification, or documentation supporting your return. Delays in response can postpone your refund or increase penalties if payment is due. Taxpayers should follow all instructions in the notice to stay compliant with Virginia tax laws and resolve any outstanding tax responsibilities quickly.
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