Filing a tax return for a prior year, like 2016, may seem unusual, but it’s more common than you might think. Individuals and small business owners may still need to submit a Virginia return from 2016 to claim a refund, resolve an outstanding tax balance, or comply with a notice from the Virginia Department of Taxation. The state allows taxpayers to file prior-year returns up to three years from the original deadline to receive a tax refund. Still, certain situations—such as audits or amended filings—may extend the relevance of an older return.
This guide is designed explicitly for Virginia individuals, sole proprietors, and small businesses that need to file or correct a paper return or submit a return electronically for the 2016 tax year. Whether you're seeking to fix errors, meet state compliance, or file for the first time, understanding the proper steps is essential. Prior-year returns follow instructions, forms, and mailing addresses differently from current-year filings.
Filing correctly—even for a return from several years ago—can help avoid additional penalties and protect your financial record. This article provides a complete, step-by-step breakdown of how to prepare, file, and track your 2016 Virginia tax return with clarity and confidence. From gathering documents to choosing the proper form, we’ll help you complete the process as efficiently and accurately as possible.
Virginia’s state income tax system in 2016 followed a progressive tax structure, meaning the tax rate increased as income rose. All Virginia residents, part-year residents, and nonresidents with income from Virginia sources were required to file a Virginia return if their Virginia Adjusted Gross Income (VAGI) met certain thresholds. VAGI starts with your federal adjusted gross income and is adjusted with Virginia-specific additions and subtractions.
Here are the 2016 filing thresholds by filing status:
Virginia used the following income tax brackets for 2016:
Residents were required to report all taxable income, while part-year residents only reported income earned while living in Virginia. Nonresidents had to report only income from Virginia sources, such as wages earned or rental income from property in Virginia.
Understanding how VAGI works is essential because it determines whether you must file, how much tax you may owe, and whether you can claim deductions or credits on your 2016 return.
The original due date for filing your 2016 Virginia tax return for calendar-year filers was May 1, 2017. This date applies to both paper returns and those submitted electronically. Filing after this deadline without an extension could result in penalties and interest. If you were owed a tax refund, you had up to three years from the original due date to claim it—meaning the deadline to receive a 2016 refund was May 1, 2020.
Virginia offered an automatic six-month filing extension, pushing the final filing deadline to November 1, 2017. No special form was needed to receive this extension, but you were still required to pay at least 90% of your total tax due by the original deadline to avoid additional penalties. Taxpayers who owed tax and failed to meet this 90% payment threshold by May 1 were subject to late payment interest and penalties, even if they filed under the automatic extension.
Penalties for missing the original deadline were significant. Virginia could assess a late filing penalty of 30% of the tax due if you did not file your form by the extended deadline. In addition, a late payment penalty of up to 6% per month (capped at 30%) could apply. Interest was charged on unpaid taxes from the original due date until payment was received, regardless of whether a return had been filed.
To avoid these charges, you must either pay the full amount by May 1 or make a timely extension payment using Form 760IP. If you still need to file your 2016 return, submitting it now—even late—can help minimize further penalties.
Several vital updates affected how individuals and businesses filed their Virginia tax returns for 2016. These changes impacted deductions, credits, and how the state aligned with federal tax rules. Understanding these updates is essential if you file late or amending a prior-year return.
Virginia updated its conformity date with the federal tax code from December 31, 2014, to December 31, 2015. However, it continued to “deconform” from specific federal provisions, such as bonus depreciation and net operating loss (NOL) carryback rules. This means certain deductions allowed on federal returns were not permitted on Virginia returns, and taxpayers had to adjust their income accordingly on Schedule ADJ.
Starting in 2016, Virginia allowed a deduction of up to $2,000 per ABLE (Achieving a Better Life Experience) savings trust account. These contributions supported individuals with disabilities and could be subtracted from your Virginia Adjusted Gross Income on your return.
Farmers who donated food crops to eligible nonprofit food banks could claim a tax credit equal to 30% of the donation's fair market value, up to a maximum of $5,000 per taxpayer.
Virginia expanded its Research and Development Expenses Tax Credit, increasing annual caps and introducing a Major R&D Expenses Tax Credit for companies with larger qualifying expenses. These credits require separate applications and documentation to be claimed.
For details on these updates, refer to the official Virginia Department of Taxation instructions for the 2016 tax year.
Choosing the correct form is one of the most important steps when preparing your Virginia tax return for 2016. The form you use depends on your residency status during the year. Filing the wrong form may delay processing or result in an inaccurate tax refund or balance due.
Use Form 760 if you were a full-year Virginia resident in 2016. This is the standard individual income tax return form for residents. It must be used whether you are filing as single, married filing jointly, or married filing separately.
If you moved into or out of Virginia during 2016, use Form 760PY. This form is for part-year residents who only lived in Virginia for part of the year but still had Virginia income.
If you did not live in Virginia but earned income from Virginia sources (e.g., a job in a Virginia city, rental property, or business income), you must file Form 763.
Depending on your situation, you may also need to include one or more of the following forms or schedules:
All official 2016 Virginia forms are available on the Virginia Department of Taxation website. Be sure to download the correct version for the 2016 tax year and follow the instructions closely.
Filing your 2016 Virginia tax return involves several key steps. Following this process carefully will help ensure your return is complete, accurate, and filed correctly—whether submitting a paper return or filing electronically.
Before starting your return, collect the following:
Start with your Federal Adjusted Gross Income (AGI) and then:
The result is your Virginia Adjusted Gross Income, which determines filing eligibility and tax owed.
You must choose either the standard deduction or itemized deductions:
Make sure your choices match your filing status and are backed by documentation.
Using the Virginia tax rate schedule, calculate the amount of tax based on your taxable income:
Next, subtract any eligible tax credits, including:
Include the necessary forms and schedules for each credit you claim.
Once you’ve completed your 2016 Virginia tax return, the next step is choosing how to file it. Although you can no longer e-file directly through most current platforms, Virginia still provides several options for submitting paper returns or filing electronically through approved channels.
While many commercial tax software providers no longer support 2016 filings, Virginia’s Free File program and Free Fillable Forms may still be accessible for eligible taxpayers. These are typically hosted on the Virginia Department of Taxation website.
Benefits of filing electronically:
If you choose to file a paper return, use the following mailing addresses based on your return type:
You may also file your form with your local Commissioner of the Revenue. The Virginia Department website provides a list of regional office addresses.
Whether you return electronically or by mail, following proper filing procedures ensures your return is processed without unnecessary delays or rejections.
If your 2016 Virginia tax return shows a balance due, you must make a timely payment to avoid penalties and interest. The Virginia Department of Taxation offers multiple payment options, including online tools and traditional methods.
The easiest and most secure way to pay is through the Virginia Department of Taxation’s website. You can:
Online payments are processed quickly, and confirmation is provided for your records.
If you prefer to pay by mail:
Ensure your payment is included with your form to avoid misprocessing.
Paying as soon as possible can reduce the week-by-week accumulation of penalties and interest.
Tracking Your Refund or Balance Due
After filing your 2016 Virginia tax return, you should check the status of your tax refund or confirm whether you have an outstanding balance. The Virginia Department of Taxation offers several tools to help taxpayers monitor their return and payment activity.
You can track your refund using Virginia’s “Where’s My Refund?” tool:
You will need the following information:
Refunds may be delayed if your return is selected for identity verification or additional review.
Your refund may be withheld to cover:
If this happens, you will receive a notice explaining the amount applied and the agency receiving the payment.
Even with a well-prepared 2016 Virginia tax return, simple mistakes can lead to processing delays, rejected returns, or lost refunds. You can avoid these common issues by carefully checking your return before you file it.
Many taxpayers submit the incorrect form based on their residency status. Make sure you use:
Failing to include required additions and subtractions to your federal income can result in an incorrect Virginia Adjusted Gross Income (VAGI). These adjustments are entered on Schedule ADJ.
Ensure you enter the correct Social Security number for yourself and any dependents. A mismatch with IRS or Virginia records can prevent the return from being processed.
If you're filing jointly, both spouses must sign the return. Unsigned paper returns will not be accepted.
Double-check your calculations, especially when applying credits, deductions, or tax rates. Attach all supporting schedules and forms (such as VAC, OSC, or CR) as needed.
Avoiding these mistakes ensures your paper return or electronic submission is processed promptly, helping you receive your tax refund without delays.
You may need a correction even after filing your 2016 Virginia tax return. If you made an error on your original submission—such as omitting income, claiming the wrong deduction, or using the wrong filing status—you should file an amended return as soon as possible.
To amend a return:
If the amendment is based on a change to your federal return, include a copy of your amended federal form.
Consider contacting the Virginia Department of Taxation or a qualified tax professional if you:
You can reach the department by phone or mail, or visit their website at tax.virginia.gov for more support resources.
If you missed the May 1, 2017, deadline, you can still file your 2016 return. However, you may be charged penalties and interest if you owe tax. If you're due a refund, you had until May 1, 2020, to claim it. After that date, refund claims are generally forfeited. Filing now can still help resolve compliance issues and prevent further penalties from accumulating on unpaid balances.
No, the deadline to claim a 2016 tax refund expired on May 1, 2020. Virginia allows refunds for prior-year returns only within three years of the original due date. Any overpayment is typically forfeited if you file a return after that window. You may still need to file to comply with Virginia tax laws, even if you're not eligible for a refund.
To amend your 2016 Virginia return, file Form 760, 760PY, or 763 with the “Amended Return” box checked. Provide a written explanation of the changes and include supporting documents, such as corrected W-2s or your amended federal return. If changes result from an IRS adjustment, attach that documentation too. You must file within one year of a federal change or correction that affects your Virginia return.
If you contributed to a Virginia ABLE savings account in 2016, you could claim up to $2,000 per account as a deduction on your Virginia return. You may also qualify for the Food Crop Donation Credit or Research and Development Credit. Each credit had specific eligibility and documentation requirements. Refer to the 2016 Virginia Department of Taxation instructions or consult a tax advisor to confirm your eligibility.
Yes, if you and your spouse meet certain conditions. If both spouses lived in Virginia for part of the year, you may file jointly using Form 760PY. If only one spouse is a resident, special rules apply. In many cases, each spouse must file separately unless you elect to treat both as Virginia residents. Review the instructions for Form 760PY to ensure the correct filing status.
If your refund was reduced or withheld, Virginia may have applied it to unpaid state taxes, local government debts, court fines, or federal debts under the Treasury Offset Program. You will receive a notice explaining how much was taken and where it was sent. If you disagree or need clarification, contact the agency listed on the notice or call the Virginia Department of Taxation for more information.
Keep copies of your 2016 Virginia tax return, W-2s, 1099s, and all supporting documents for at least three years from the original due date or filing date—whichever is later. If you filed late or amended your return, retain records for at least three years from the final filing date. Maintaining accurate records helps protect you in case of an audit or future filing discrepancies.
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