The Essential Guide on How to File Your Virginia Tax Return 2017

Filing your Virginia state income tax return for the 2017 filing year is essential for eligible taxpayers to comply with state taxation law. This process ensures that residents, part-year residents, nonresidents, and certain resident aliens meet their obligations and, if applicable, claim refunds for taxes paid. Whether your income comes from wages, self-employment, a corporation, or other sources, understanding the requirements will help you avoid unnecessary penalties and interest.

Accuracy and timeliness are critical for tax purposes. Submitting your tax return on time, with all required forms and documentation, helps prevent delays and ensures you receive any tax credits or deductions you qualify for. Careful preparation is key, from calculating your standard deduction amounts to recording your income and exemptions. This guide is designed to make the process clear and manageable, even if you are unfamiliar with tax forms or filing procedures.

This step-by-step guide on how to file your Virginia tax return for 2017 is tailored for individual taxpayers, sole proprietors, and small businesses. The guide walks you through every process step, from gathering records to mailing your return or e-filing for free. It includes references to the Virginia Department of Taxation and its official instructions, allowing you to confirm details with the state's revenue authority directly. By following this guide, you can approach the filing process with clarity and confidence.

Virginia Department of Taxation

The Virginia Department of Taxation is the state agency responsible for administering and enforcing Virginia’s tax laws. For the 2017 filing year, it provides official forms, instructions, and online services to help eligible taxpayers file their Virginia tax return accurately and on time. Whether you are a resident, nonresident, or part-year resident, the department is your primary resource for tax purposes.

Key Functions

Tax Form Distribution: The department offers downloadable copies of Form 760, schedules, and other required forms for individual taxpayers and businesses.
Guidance and Instructions: The official instructions explain how to calculate income, deductions, and tax credits, and they include examples for clarity.
Payment Processing: The agency processes online payments, mailed checks, and ACH transactions for taxes owed.
Refund Management: Tools are available to track refunds, verify payment dates, and review processing times.

Services for Taxpayers

Electronic Filing (e-File): Virginia eForms and Free File programs allow qualifying taxpayers to submit returns online for free.
Taxpayer Assistance: For filing or payment questions, contact options include phone support, email, and in-person help at select service centers.
Compliance Resources: The department provides publications on residency rules, taxable income, standard deduction amounts, and exemptions to ensure taxpayers meet filing requirements.

By relying on the Virginia Department of Taxation’s official resources, taxpayers can ensure their returns comply with state taxation law, avoid errors, and make informed decisions about deductions, tax credits, and payment methods.

Overview of Virginia State Income Tax for 2017

Virginia’s state income tax system for the 2017 filing year applies to eligible taxpayers who are residents, part-year residents, nonresidents with Virginia-source income, and certain resident aliens. These rules help individuals and businesses meet their obligations under Virginia taxation law while allowing them to claim deductions and tax credits where they qualify. Filing a Virginia tax return accurately and on time is essential to avoid penalties and interest.

Who Needs to File?

You must file a Virginia tax return if your Virginia Adjusted Gross Income (VAGI) meets or exceeds these thresholds for 2017:

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

You should still file a Virginia tax return even if your income exceeds the required thresholds. Filing ensures you can:

Claim a refund for taxes withheld from your wages. If your employer withheld Virginia income tax during the year, filing allows you to recover any overpayment.
Report the estimated tax payments you made. Submitting your return ensures these payments are applied to your account and can result in a refund or credit.
Receive any refund owed by the Virginia Department of Taxation. The only way to get money back from the state is to file a complete and accurate return.

Filing Requirements by Residency Status

Residents: File Form 760 for the whole year’s income.
Part-Year Residents: Use Form 760PY to report income during your residency period.
Nonresidents: File Form 763 if you lived outside Virginia but earned Virginia income.
Resident Aliens: Generally follow resident filing rules unless treated differently under federal law.

For downloadable forms, visit the Virginia Department of Taxation – Forms Page. You can also review Form 760 instructions for 2017 for detailed filing guidance and examples.

Key Deadlines and Notable Changes for 2017

For the 2017 filing year, the Virginia Department of Taxation set clear deadlines for eligible taxpayers. The filing deadline for most taxpayers was May 1, 2018. If you need more time to submit your tax return, an automatic six-month extension to November 1, 2018, applies. However, this extension only applied to filing; you still had to pay at least 90% of your tax by May 1 to avoid penalties and interest.

The key payment deadline is May 1, 2018, for all taxes owed, regardless of filing method. Payments can be made online, by mail, or through an ACH transaction.

Notable Changes for 2017

New electronic filing requirements: Taxpayers with large payments, such as estimated tax over $60,000, had to file and pay electronically.
Eliminating the political contribution credit: This tax credit was no longer available beginning January 1, 2017.
Updated federal conformity date: Virginia’s tax code conformed to federal law as of December 31, 2016, with some exceptions for deductions.

Virginia Tax Forms You May Need

For the 2017 filing year, the Virginia Department of Taxation required eligible taxpayers to use specific forms depending on their residency status, income sources, and deductions. The primary form for most residents is Form 760—Resident Individual Income Tax Return, which is used to report all income for the year and calculate tax due.

Primary and Supporting Forms

Form 760—For full-year Virginia residents.
Schedule ADJ—Used to report income additions, subtractions, and deductions.
Schedule CR—For claiming tax credits, such as the credit for taxes paid to another state.
Schedule OSC—for credit related to out-of-state taxes.
Schedule VAC—For voluntary contributions to eligible programs.

Special Forms

Form 760PY—For part-year residents to report income earned during the residency period.
Form 763—For nonresidents with Virginia-source income.
Form 760IP is for making an extension payment when more time is needed to file.
Form 760-PMT—For payment coupons for taxes owed after filing.

Using the correct forms is essential for tax purposes, as incomplete or incorrect submissions can delay processing and affect refunds or payments. Always review the instructions to confirm which forms apply to your filing situation before you mail or submit your return electronically.

Step-by-Step Instructions to Complete Your Return

Completing your Virginia tax return for the 2017 filing year involves gathering required documents, entering accurate personal and income information, calculating deductions and credits, and determining whether you owe tax or qualify for a refund. The Virginia Department of Taxation provides detailed instructions, but the following steps outline the process in clear, manageable terms.

Step 1 – Gather Required Documents

Before filling out Form 760 or any related schedules, collect all relevant records:

Your completed federal income tax return.
W-2 forms showing wages and Virginia tax withheld.
1099 forms for interest, dividends, or other income.
VK-1 forms from partnerships or S corporations.
Records of estimated tax payments made during 2017.
Documentation for deductions or tax credits you plan to claim.
Social Security numbers for you, your spouse, and dependents.

Organizing these documents helps avoid errors and speeds up the filing process.

Step 2 – Fill in Personal Information

At the top of Form 760, enter your personal information:

Full name (and spouse’s name, if applicable).
Current address and ZIP code.
Social Security numbers for all listed taxpayers.
Date of birth for you and your spouse.
Locality code (3-digit code identifying your city or county).

Your filing status should match your federal tax return. Choose from:

Single
Married Filing Jointly
Married Filing Separately

Step 3 – Calculate Virginia Adjusted Gross Income (VAGI)

Start with your federal adjusted gross income.
Add any required income items (e.g., municipal bond interest from other states) as listed on Schedule ADJ.
Subtract allowable deductions such as Social Security benefits, qualifying retirement income, and other approved subtractions.

The result is your Virginia Adjusted Gross Income, which forms the basis for calculating your tax liability.

Step 4 – Apply Deductions and Exemptions

Choose between the standard deduction and itemized deductions. For 2017, the standard deduction amounts are $3,000 for single or married filing separately and $6,000 for married filing jointly.
Enter the number of exemptions you can claim (multiply by $930).
Deduct any additional allowable amounts from Schedule ADJ.

Selecting the correct deduction method can reduce your taxable income and increase your refund.

Step 5 – Calculate Your Tax and Apply Credits

To find your base tax amount, use the Virginia tax tables or tax rate schedule in the instructions on Form 760.
Apply applicable tax credits:
- Credit for taxes paid to another state (Schedule OSC).
- Child and dependent care credit.
- Other credits are listed on Schedule CR.

Credits reduce your tax liability and can significantly lower the amount you owe.

Step 6 – Determine Refund or Amount Owed

You qualify for a refund if your total payments and credits exceed your calculated tax.
You owe a balance if your calculated tax exceeds your total payments and credits.
Decide whether to apply any overpayment to next year’s estimated tax or receive a direct refund.

Tips for Accuracy:

Double-check math calculations.
Ensure all Social Security numbers are correct.
Include all required schedules and documentation.
Sign and date your return (both spouses must sign if filing jointly).

How to File Your Virginia Tax Return

You can file your Virginia tax return for the 2017 filing year electronically or on paper. The Virginia Department of Taxation recommends electronic filing for faster processing and fewer errors, but paper filing is still an option for those who prefer it.

Electronic Filing (e-File)

Virginia eForms: A free online tool for filing straightforward returns directly with the Virginia Department of Taxation.
Virginia Free File: Offers free preparation and filing for qualifying taxpayers based on income and filing status.
Fillable Forms: This lets you complete and submit forms online without additional tax software.

Advantages of e-Filing:

Refunds are typically processed within two weeks.
Built-in accuracy checks reduce the risk of calculation errors.
Immediate confirmation that your return was received.
You can choose direct deposit for faster refund delivery.

Paper Filing and Standard Deduction Documentation

If you decide to submit your Virginia tax return by mail:

Use original Virginia tax forms, not photocopies.
Include all required schedules, such as those showing your standard deduction amount or itemized deductions, and attach any supporting documentation.
Attach a full copy of your federal income tax return.
Sign and date your return.
Use the correct mailing address:
- Refund returns:
  Virginia Department of Taxation
  P.O. Box 1498
  Richmond, VA 23218-1498
- Returns with payment due:
  Virginia Department of Taxation
  P.O. Box 760
  Richmond, VA 23218-0760

Filing on time and completing your return helps avoid penalties and interest. Whether you choose to e-file or paper file, double-check all information to ensure you receive any refunds or tax credits you qualify for.

How to Make a Payment

For the 2017 filing year, the Virginia Department of Taxation provides several secure options for eligible taxpayers to pay their state income tax. Understanding deadlines and requirements ensures your payment arrives on time and is accurately applied to your account.

Online Payment Methods

Virginia Tax Online Services: Pay directly from your bank account (ACH debit) at no additional cost. You can schedule a payment date and receive confirmation when funds arrive.
ACH Credit: Initiated through your bank, often used by businesses or taxpayers making large payments. Your bank may charge a finance-related service fee for this transaction.
Credit or Debit Card Payments: Available through approved third-party vendors. Service fees may apply, and terms are subject to vendor policies.

Paying by Check or Money Order

If you are not required to pay electronically, you may mail a check or money order:

Make it payable to “Virginia Department of Taxation.”
Include your Social Security number, tax year, and a brief payment subject (e.g., 2017 income tax).
Attach Form 760-PMT if you are paying after filing your tax return.
Mail it to the address listed for returns with payment due.

Penalties and Interest for Late Payments

Late Payment Penalty: 6% of the unpaid balance per month, up to 30%.
Interest: Charged from the original due date until paid in full.

If you cannot pay the full amount, contact the Virginia Department of Taxation to discuss a payment plan before penalties and interest increase.

How to Track Your Refund or Balance Due—Information for Resident Aliens

Resident aliens who filed a Virginia tax return for the 2017 filing year can use the same tools as other eligible taxpayers to check the status of their refund or balance due. Being informed about expected processing times helps avoid unnecessary follow-up calls or delays.

Online Tools and Phone Support for Refunds and Tax Credits

Online Refund Status Tool: This tool is available on the Virginia Department of Taxation website. You will need your Social Security number, filing status, and the exact refund amount.
Phone Refund Line: Call 804-367-2486 to check your refund status using the automated system.
These tools also allow you to verify whether tax credits you claimed have been applied to your account.

Processing Times

E-filed returns: Refunds are typically processed within two weeks.
Paper returns: Processing can take up to eight weeks.
Certified mail: Add three weeks for delivery and handling.

Direct Deposit or Paper Check

Refunds can be issued through direct deposit to your bank account or as a paper check sent to the address listed on your tax return. Choosing direct deposit often reduces wait time. If your refund or balance due does not arrive within the expected time frame, contact the Virginia Department of Taxation to confirm receipt and resolve any issues.

Common Mistakes to Avoid When Filing

Filing your Virginia tax return for 2017 requires accuracy and completeness. Being aware of common filing mistakes can help you avoid delays, penalties, and the loss of valuable tax credits or deductions. Even minor errors can cause the Virginia Department of Taxation to hold your return for review, slowing refund processing.

Frequent Errors and How to Prevent Them

Incorrect Locality Code
Each city and county in Virginia uses a specific three-digit locality code. Entering the wrong code can delay processing and misdirect your tax payment. Always check the official instructions for the correct code.
Missing Signatures
Returns without signatures are considered incomplete. If you file jointly, both spouses must sign and date the return before submission.
Wrong Filing Status
Your Virginia filing status should match your federal return unless you meet specific exceptions. The wrong status can change your tax calculation and trigger a correction notice.
Missing Schedules or Attachments
If you claim deductions, tax credits, or adjustments, you must include all related schedules, such as Schedule ADJ or Schedule CR. Omitting them may result in denied claims.
Social Security Number Errors
Double-check all Social Security numbers for accuracy, as mismatches can cause significant delays or rejection.
Math and Data Entry Mistakes
Review all calculations and line entries before filing. Using Virginia’s eFile system can reduce errors by performing automatic accuracy checks.

Verifying these details before you submit your return will help ensure smoother processing and faster access to your refund.

Final Filing Checklist

Before submitting your Virginia tax return for the 2017 filing year, carefully review this checklist. Each step helps make sure your return is accurate, complete, and processed without delays.

Confirm You Have the Right Forms

Use Form 760 if you were a full-year Virginia resident.
Use Form 760PY if you lived in Virginia for only part of the year.
Use Form 763 if you were a nonresident but earned Virginia income.
Include all supporting schedules your return requires, such as:
- Schedule ADJ (for income additions, subtractions, or deductions)
- Schedule CR (for tax credits)
- Schedule OSC (for out-of-state tax credits)
Attached are the W-2 and 1099 forms showing Virginia's income tax withheld.
Attach a full copy of your federal tax return if mailing your return.

Double-Check Accuracy

Verify your three-digit locality code from the instruction booklet.
Confirm that all Social Security numbers are correct for you, your spouse, and your dependents.
Ensure your filing status matches your federal return unless you qualify for an exception.
Correctly calculate your standard deduction or itemized deductions.
Make sure all tax credits you are claiming have proper documentation.

Sign and Date Your Return

Both spouses must sign if filing jointly.
Include the date of signing so the return is valid.

Verify Payment or Refund Information

If you owe tax, decide whether to pay online, by check, or by card.
Confirm your direct deposit details or mailing address if you expect a refund.

Completing these steps will help ensure your return is accepted quickly and that any refund arrives without unnecessary delays.

Frequently Asked Questions (FAQs)

What if I missed the May 1, 2018, filing deadline for my 2017 return?

If you missed the deadline, file your Virginia tax return as soon as possible to reduce penalties and interest. The late filing penalty can be up to 30% of the tax owed, and interest accrues from the original due date. Even if you cannot pay in full, filing promptly limits additional charges and protects your refund eligibility.

What deductions do Virginia taxpayers often overlook?

Commonly missed deductions include the age deduction for those 65 and older, certain Social Security benefits, and income from municipal bonds outside Virginia. Many taxpayers also overlook subtractions for qualifying military and government pensions. Reviewing Schedule ADJ carefully and comparing your situation to the instructions can help you claim all eligible deductions before filing.

How do I request a filing extension?

Virginia provides an automatic six-month extension to file, requiring no separate form. However, to avoid penalties, you must pay at least 90% of your estimated tax by the May 1 deadline. Use Form 760IP to make an extension payment if necessary. Remember, the extension is only for filing, not for paying taxes owed.

Can part-year residents file jointly in Virginia?

Part-year residents can file jointly if they were married during the tax year and also filed jointly on their federal return. However, income must be reported only for the period of Virginia residency. Use Form 760PY and follow the part-year resident instructions to ensure you calculate tax correctly for your situation.

How do I amend my 2017 Virginia tax return?

To amend, complete a new Form 760 with the correct information and mark the “Amended Return” oval at the top. Include an explanation of changes and any supporting documents. Mail it to the same address as your original filing. Amended returns cannot be e-filed for 2017, so use paper submission for updates or corrections.

What if I can’t pay my full tax amount when I file?

If you cannot pay the full amount, file your return on time to avoid the higher late filing penalty. Pay as much as you can to reduce interest and late payment charges. Then contact the Virginia Department of Taxation to discuss payment plan options. This approach helps minimize costs while keeping your account in good standing.