How to File Your Virginia Tax Return: Guide to Tax Year 2018

In 2018, thousands of Virginians paid the price for filing errors and delays: penalties for late payment added up quickly, while many who qualified for refunds never received them because their paperwork was incomplete. The process may look simple, but missing a filing deadline or forgetting a required schedule can cost you hundreds of dollars in penalties and weeks of waiting for your refund. That reality makes understanding how to file your Virginia tax return correctly helpful and essential.

Virginia tax laws set clear thresholds for when individuals, families, and small businesses must file. These rules affect everyone, from wage employees to rideshare drivers and food delivery contractors. Even if you earned less than the minimum income required to file, you could still be owed money back from the state. Filing is more than compliance; it is about protecting your finances, avoiding painful interest charges, and ensuring you claim every deduction you qualify for under state and federal law.

This guide walks you through completing your Virginia tax return for the 2018 tax year. You will learn who must file, what forms to use, how to calculate your tax responsibility, and the fastest way to submit your return. We will also highlight the consequences of missed deadlines, common errors that delay refunds, and the advantages of filing electronically. By following this structured approach, you can avoid costly mistakes and feel confident that your return is accurate, complete, and submitted on time.

Who Needs to File in Virginia?

Virginia filing requirements are tied directly to your Virginia Adjusted Gross Income (VAGI). For the 2018 tax year, the thresholds were set at:

Single filers: $11,950 or more
Married filing jointly: $23,900 or more (combined income)
Married filing separately: $11,950 or more

If your VAGI meets or exceeds these levels, you are required to submit a tax return. These limits ensure that residents with moderate wages or self-employment earnings fall under Virginia’s tax responsibilities.

You should still consider filing if your income falls below these thresholds. Many taxpayers qualify for a refund when their employer withholds Virginia taxes from paychecks or makes estimated tax payments throughout the year. Filing is the only way to get your money back, so skipping this step could mean leaving money with the state.

Special Cases to Consider

Wage employees: If your employer withheld taxes, filing ensures your refund is returned quickly.
Rideshare drivers and food delivery contractors: Independent workers often underestimate their filing duties. Income reported on 1099 forms must be included, and failing to file can create penalties that grow with time.
Small business owners: Even sole proprietors or side-business operators who earned modest amounts must evaluate their income against Virginia’s thresholds. Self-employment often triggers estimated tax payment obligations in addition to the annual filing.

Part-Year and Nonresidents

Part-year residents: If you moved into or out of Virginia in 2018, you must file using Form 760PY and report income earned while living there.
Nonresidents: Anyone who earned income from Virginia sources—such as wages from a Virginia employer or revenue from a Virginia-based business—must file Form 763, even if they live elsewhere.

Why Filing Matters

Failing to submit your return on time can result in more than frustration. Late filing and payment penalties accumulate quickly, and processing times stretch further if mistakes are found. Filing on time, even if your income is below the threshold, protects you from penalties and secures any refund owed. Understanding these filing rules is a crucial first step toward financial compliance and peace of mind for anyone earning wages, operating a business, or contracting in Virginia.

Key Filing Deadlines and Extensions

For the 2018 tax year, the Virginia income tax return due date was May 1, 2019. This date is the same each year for most individual taxpayers, and missing it can lead to immediate penalties. Understanding your filing deadline is one of the most essential parts of filing your Virginia tax return, since the date determines whether you qualify for a refund or face costly fees.

Standard Deadlines

Regular due date: May 1 for calendar year filers.
Extension deadline: November 1 for most taxpayers. Virginia provides an automatic six-month extension to file; no application is required.
Overseas filers: July 1 if living or traveling outside the United States at the original due date.

Filing Extension vs. Payment Deadline

It is important to note that Virginia’s extension applies only to filing, not payment. If you owe taxes, at least 90% of your liability must be paid by May 1 to avoid penalty charges. Many taxpayers assume that an extension delays filing and payment, which can result in penalties that quickly add up.

Penalties and Interest

Late filing penalty: 6% of unpaid tax per month or partial month, capped at 30%.
Late payment penalty: 6% annually on any unpaid balance.
Interest charges: Accrue from the original due date until the balance is fully paid.

For example, a taxpayer who owes $2,000 but fails to pay by May 1 may face over $100 in combined penalties and interest within just a few months. Delaying further increases those costs. The filing deadline is more than just a calendar reminder. Missing it can mean losing part of your refund to penalty fees or waiting weeks for your return to process. Filing and paying on time allows you to avoid unnecessary costs, secure your refund faster, and maintain a clean payment history with the Commonwealth of Virginia.

Virginia Tax Law Updates for 2018

Each tax year brings changes, and 2018 introduced several new Virginia tax laws directly affecting how individuals and small businesses filed their returns. Knowing these updates is essential to avoid mistakes and claim every deduction available.

New Forms and Schedules

Schedule ADJS: Introduced for taxpayers with multiple additions, subtractions, or deductions. This form allowed more detailed reporting beyond the standard Schedule ADJ.
Virginia Schedule A: Required for all taxpayers who choose to itemize deductions. Unlike prior years, itemizing could no longer be done directly on the main return form.

These changes meant that even experienced filers needed to adjust their process and carefully follow updated instructions.

Tax Law Adjustments

Federal conformity update: Virginia updated its Internal Revenue Code conformity date to December 31, 2018. This ensured that state rules matched federal tax law for the year.
Venture capital subtraction: A new subtraction allowed investors to deduct qualifying venture capital investments, supporting entrepreneurship across the state.
Business interest deduction: Taxpayers could claim 20% of certain federally disallowed business interest expenses, giving small businesses added relief.
Special 2018 refund: Many taxpayers received a one-time bonus of up to $110 for single filers and $220 for joint filers, distributed to those who filed early.

Why These Updates Matter

Unaware of these new Virginia tax laws, taxpayers risked filing incomplete or inaccurate returns. Using outdated forms or skipping a newly required schedule could delay refunds or trigger correction notices. Staying current with legislative changes is vital to meeting your tax responsibilities in the Commonwealth of Virginia.

What Forms You Need to Complete Your Return

Choosing the correct forms is one of the most important parts of filing your Virginia tax return. Using the wrong form or missing a required schedule can delay your refund or create penalties, so matching your filing situation with the correct paperwork is essential.

Main Individual Income Tax Forms

Form 760 - Resident Return: This form is used by full-year Virginia residents who lived in the state for all of 2018. Most individuals will file this form.
Form 760PY - Part-Year Resident Return: Required for taxpayers who moved into or out of Virginia during the year. You must report income earned during your time as a resident.
Form 763 - Nonresident Return: Filed by nonresidents who earned income from Virginia sources, such as wages from a Virginia employer or business revenue tied to the state.

Key Schedules and Supporting Forms

Schedule ADJ - Additions, Subtractions, and Deductions: For reporting items such as retirement income subtractions, disability income, or tax credits.
Schedule ADJS - Multiple Adjustments: A new 2018 form for taxpayers with numerous adjustments that could not fit on Schedule ADJ.
Virginia Schedule A - Itemized Deductions: Required for anyone who itemized instead of claiming the standard deduction.
Schedule CR - Credit Computation: Used to calculate available state tax credits.
Schedule OSC - Other State Credit: This is for taxpayers claiming credit for taxes paid to other states.
Schedule VAC - Voluntary Contributions: This option allows you to make donations to state programs and charities directly from your refund or tax payment.

Business and Self-Employment Forms

Form 760C - Estimated Income Tax for Individuals: This form is commonly used by small business owners, self-employed workers, and contractors such as rideshare drivers. It tracks quarterly estimated tax payments and ensures compliance with Virginia tax laws.

Completing the correct forms is more than a formality. For example, a small business owner who fails to file Form 760C may face additional penalties for missing estimated tax payments. A taxpayer who itemizes deductions without attaching Virginia Schedule A could see their return delayed for weeks. Each form is tied directly to specific Virginia tax laws, and attaching all required schedules helps guarantee that your return is processed quickly and accurately.

Step-by-Step Guide to Filing

Filing your Virginia tax return for the 2018 tax year may seem complicated, but breaking the process into clear steps makes it manageable. By following each stage carefully, you can avoid mistakes, meet your tax responsibilities, and secure any refund owed to you.

Step 1: Gather Crucial Documents

Before you begin, collect the financial records you will need:

W-2 forms from your employer showing wages and Virginia withholding
1099 forms for contractor income, dividends, or interest
VK-1 forms for partnership or S-corporation income
Your completed federal return (IRS Form 1040)
Records of estimated tax payments made during 2018
Documentation for deductions, such as charitable gifts or mortgage interest

Having these ready helps ensure accuracy and prevents delays. Missing paperwork is among the most common causes of errors that slow refunds.

Step 2: Enter Personal Information

On your return, provide:

Your full legal name and mailing address
Social Security Number and the first four letters of your last name
For joint returns: spouse’s SSN and name information
Optional: Virginia driver’s license details for identity verification
Account number and routing information if you want your refund by direct deposit

Step 3: Determine Your Filing Status

Select the same filing status you used on your federal return:

Single
Married filing jointly
Married filing separately

If you qualify as head of household at the federal level, you may also mark that status on your Virginia return.

Step 4: Calculate Your Virginia Adjusted Gross Income (VAGI)

Line 1: Start with your federal adjusted gross income from the IRS return.
Line 2: Add adjustments reported on Schedule ADJ, such as interest from other states or federally disallowed deductions.
Line 3: Combine these to find your preliminary Virginia income.

Step 5: Apply Subtractions and Deductions

Age deduction: Available to those born on or before January 1, 1954, calculated using the age deduction worksheet in the official instructions.
Subtractions: Examples include retirement income, disability income, military pay, and Social Security benefits (if included in federal AGI).
Standard vs. Itemized: Use Virginia Schedule A if you itemize deductions; otherwise, the standard deduction applies.

Step 6: Claim Exemptions

Exemptions reduce taxable income:

$930 for yourself
$930 for a spouse (if filing jointly)
$930 for each dependent

An additional $800 is available for each person over 65 or blind. Remember, exemptions cannot be combined with the low-income tax credit.

Step 7: Compute Your Tax Liability

Virginia’s progressive rates for 2018 were:

2% on the first $3,000
3% on $3,001 to $5,000
5% on $5,001 to $17,000
5.75% on amounts over $17,000

This determines the base tax owed before credits and withholdings are applied.

Step 8: Apply Credits and Finalize

Reduce liability with credits:

Credit for taxes paid to other states (Schedule OSC)
Credit for low-income individuals
Business and investment credits listed on Schedule CR

Subtract credits, then compare to your withholding and estimated tax payments. If your payments exceed your liability, you qualify for a refund; if not, you must pay the difference.

Common Mistakes to Avoid

Entering federal taxable income instead of federal adjusted gross income on Line 1
Forgetting to attach supporting schedules (ADJ, A, CR, OSC)
Using an incorrect Social Security Number or misspelling names
Failing to sign and date a paper return
Sending the return to the wrong mailing address
Forgetting to keep copies of your completed forms and supporting documents

Why Following Each Step Matters

Missing a step or misreporting numbers can mean penalties, a refund delay, or even a rejected return. By carefully gathering documents, double-checking figures, and attaching the correct schedules, you can ensure your return is complete and processed without unnecessary problems.

Filing Methods: Electronic vs. Paper

The method you choose to file your Virginia tax return has a direct impact on speed, accuracy, and convenience. The Commonwealth of Virginia strongly encourages taxpayers to file electronically because it reduces errors and shortens refund wait times.

Benefits of Electronic Filing

Filing electronically is the fastest and most secure option available.

Refunds are often issued within one week through direct deposit.
Built-in error checking ensures missing schedules or math mistakes are caught before submission.
Electronic confirmation provides proof that Virginia Tax received your return.
Payment can be scheduled at the same time you file, ensuring you never miss a due date.

In addition, the Virginia Department of Taxation highlights its official website with the Virginia branding bar and cardinal logo at the top of each page. The branding bar, cardinal log, and close branding bar icon are part of the state’s digital security design, showing taxpayers that they are on an official government site when filing online.

Submitting a Paper Return

Although less efficient, some taxpayers still submit a paper return by mail. This process is slower and riskier:

Refunds may take eight weeks or more to process.
Incomplete forms or missing signatures are more likely to delay paper returns.
Mailing errors, such as using the wrong address or insufficient postage, can cause unnecessary penalties.

If you choose to file on paper, ensure your forms are complete, printed clearly, and mailed to either your local Commissioner of Revenue or directly to the Virginia Department of Taxation. Always keep copies of what you submit.

Why This Matters

Whether you electronically file or send a paper return by mail, the key is to submit it on time and follow Virginia tax laws carefully. Electronic filing provides faster refunds, easier tracking, and the peace of mind that your account details are secure. Paper filing is still allowed, but it comes with longer wait times and more chances for error. Selecting the correct method ensures your tax responsibilities are met accurately and efficiently.

How to Make a Payment

Once you file your Virginia tax return, the next step is to pay your balance in full. Paying on time protects you from penalties, interest, and a negative payment history with the Commonwealth of Virginia.

Online Payment Options

The fastest and most reliable way to pay is through the Virginia Department of Taxation’s website. Options include:

Direct bank debit (ACH): Withdraws funds directly from your account.
Electronic funds transfer (EFT): Useful for businesses making recurring payments.
Credit or debit card payments: Accepted through approved vendors, though service fees may apply.

These online methods also allow you to schedule future payments so you never miss a due date.

Traditional Payment Methods

You can pay with a check or money order if you prefer traditional options. Make it payable to “Virginia Department of Taxation” or, if filing locally, to your county or city treasurer. Always include your Social Security Number and tax year on the payment. Never send cash by mail.

Mandatory Electronic Payments

Some taxpayers are required to pay electronically:

If estimated tax payments exceed $7,500
If extension or return payments exceed $7,500
If total annual tax liability exceeds $30,000

These rules apply frequently to businesses and high-income individuals.

Payment Plans

Virginia allows you to request a payment plan if you cannot pay the full amount. Options include monthly installments or temporary deferrals in cases of hardship. Setting up a plan protects your account from enforced collection actions and helps you maintain a clear payment history.

Tracking Your Refund and Balance Due

After you file your Virginia tax return, the next question is often, "When will I get my refund?" The Commonwealth of Virginia provides tools that make tracking your refund secure and straightforward, whether you're you are waiting for money back or checking your account balance if you owe.

Tracking Refunds

Virginia’s “Where’s My Refund” online tool is available 24/7. To use it, you will need:

Your Social Security Number
Filing status (single, joint, or separate)
The exact refund amount from your return

Most electronically filed returns are processed within one week, while paper returns can take eight weeks or longer. Refunds sent by direct deposit arrive fastest, while paper checks may add several more days to the process.

Common Causes of Delays

Refund processing may slow down if:

Information on your return does not match federal IRS records
Required schedules are missing or incomplete.
Identity verification or fraud prevention measures apply.
You filed a paper return with errors or missing signatures

Double-checking accuracy before submission is the best way to avoid these delays.

Tracking a Balance Due

If you owe taxes, you can view your account online through the Virginia Tax portal. This system shows your payment history, outstanding balance, and any notices issued. You can also set up or adjust a payment plan directly from the portal.

Final Filing Checklist

Before submitting your Virginia tax return, you should complete a simple checklist. Think of it as an interactive guide to ensure no detail is overlooked. Missing even one line item can delay your refund or trigger correction notices.

Return Completeness

Confirm the correct form is used: Form 760, 760PY, or 763.
Attach all required schedules (ADJ, ADJS, Schedule A, CR, OSC, VAC).
Verify calculations and correct names, Social Security Numbers, and account details.
For paper returns, confirm your signature and mailing address.

Supporting Documents

W-2 forms showing Virginia withholding from your employer.
1099 forms for contractor income or dividends.
Federal return copy if required.
Documentation supporting deductions or credits you claim.

Payments and Refunds

Select your payment method (direct debit, check, or payment plan).
Double-check account numbers for direct deposit refunds.
If paying by mail, ensure checks or money orders are written correctly.

For Small Business Basics

Confirm estimated tax payments are reported on Form 760C.
Attach supporting documentation for business income and expenses.
Review any credits or subtractions that apply under Virginia’s local tax laws.

Why This Checklist Matters

Following a checklist reduces the risk of avoidable mistakes. The Commonwealth of Virginia branding on official forms and websites assures you that you are using legitimate resources. By staying organized and using this structured process, individuals and businesses can file confidently, knowing their return is accurate, complete, and aligned with Virginia’s legal requirements.

Frequently Asked Questions

Do food delivery contractors follow the same tax rules as employees?

Food delivery contractors do not follow the same rules as wage employees. Since they are self-employed, income is reported on 1099 forms instead of W-2s. Contractors are responsible for tracking their income, filing a Virginia tax return if they meet income thresholds, and paying quarterly estimated tax payments. Unlike employees, no taxes are automatically withheld, making accurate recordkeeping and timely filing essential to avoid penalties.

How do estimated tax payments work in Virginia?

Estimated tax payments are required if you expect to owe more than $150 in taxes after withholding. Small business owners, freelancers, and independent contractors usually fall into this category. Payments are due quarterly and reported on Form 760C. Making these payments helps avoid penalties and keeps your account in good standing. Virginia also requires electronic payments if annual tax liability or installment totals exceed specific thresholds.

What new Virginia tax laws applied to the 2018 tax year?

The 2018 tax year introduced several new Virginia tax laws that affected individuals and small businesses. Significant changes included the new Schedule ADJS for multiple adjustments, the requirement to use Virginia Schedule A for itemized deductions, and updated conformity with federal law. Taxpayers also benefited from a special one-time refund and deductions such as the venture capital subtraction. Missing these updates could have delayed refunds or caused filing errors.

Can I view my payment history after filing my return?

Yes, the Virginia Tax online portal lets you view your payment history and check whether your return has been processed. By logging into your account, you can confirm that payments were applied correctly, review balances due, and verify that refunds have been issued. This feature is essential for taxpayers on a payment plan, since it helps track compliance and ensures no penalties accumulate from overlooked balances.

How long does a refund take with direct deposit?

Refunds issued through direct deposit are usually the fastest, often arriving within one week for electronically filed returns. Paper returns take longer, typically six to eight weeks, with additional delays possible if errors or missing schedules are found. Direct deposit avoids postal delays and transfers funds to your bank account. Always double-check your account number and routing information to prevent misdirected payments or refund delays.