Although full-year and part-year residents use different Virginia income tax forms, their options for choosing a filing condition are the same. married filers should pay limited care to the information under Status 2 or Status 4 – Which Is Best for You ?
Filing Status 1 – Single: If your filing status on your federal fall was Single, Head of Household, or Qualifying Widow ( emergency room ), you must use Filing Status 1 on your Virginia income tax render. You are considered single if you are unmarried, or if you are divorced or legally separated under a separate alimony decree .
Filing Status 2 – Married, Filing a Joint Return: You may use this condition if you are married and ( 1 ) you filed a joint union recurrence ; ( 2 ) both you and your spouse are Virginia residents, or ( 3 ) neither you nor your spouse was required to file a federal revert. When lone one spouse has income, a marital couple should use Filing Status 2 .
Filing Status 3 – Married, Filing a Separate Return: If you and your spouse filed separate federal returns, you may use this filing condition. If you and your spouse filed a joint federal return, but entirely one of you is a Virginia nonmigratory, the house physician must use Filing Status 3. When using Filing Status 3, complete your tax come back as follows : ( 1 ) Compute your federal adjust gross income as though you had filed individually on your federal return ; ( 2 ) claim only the personal and dependent exemptions, itemize deductions ( if claimed on your federal return key ), and child and dependent care expense amounts that you could claim if you had filed a divide federal restitution. If one spouse claimed itemize deductions, the other spouse must besides. ( 3 ) Be certain to provide your spouse ‘s mention and social security number in the spaces included on the return for that information.
Reading: Filing Status | Virginia Tax
If you and your spouse filed disjoined federal returns, you may file a combine Virginia render using Filing Status 4, as described below .
Filing Status 4 – Married, Filing Separately on a Combined Return: You may file a unite return under Filing Status 4 if : ( 1 ) both you and your spouse had income ; ( 2 ) both you and your spouse are residents of Virginia ; and ( 3 ) you filed a joint union come back, or distinguish union returns. Status 4 can provide significant tax savings for marry filers, as described below .
Status 2 or Status 4 — Which Is Best for You?
Married couples filing Form 760PY, the Virginia part-year house physician recurrence, have two options for reporting their income on the lapp reelect. A marital couple may elect to file a joint return under Filing Status 2, or to file a compound return under Filing Status 4 .
Virginia ‘s income tax is imposed at calibrated rates, ranging from 2 % to 5.75 %. The highest rate applies to taxable income over $ 17,000.When a marry pair files a joint hark back under Filing Status 2, they report their income together in Column B of the rejoinder. The lower rates are then applied to the first $ 17,000 of their entire taxable income, and the end is taxed at 5.75 %. Under Filing Status 4, each spouse reports his or her income individually, using Columns A and B of the render. The lower tax rates are then applied individually to the beginning $ 17,000 of each spouse ‘s taxable income, which can result in a tax write of up to $ 259.
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Filing Status 2 should be used if:
- Only one spouse had income; or
- One spouse’s income will be reduced to zero or less after claiming the age deduction and any personal exemptions.
How to Use Filing Status 4
Use Column B to report income and deductions for the spouse whose name and social security number appear on the tax return foremost. Use Column A for the other spouse .
Each spouse must claim his or her own income. Income must be allocated to the spouse who earned the income and with respect to whose property the income is attributable. For example, if one spouse owns an interest in a partnership, the income from the partnership must be assigned to that spouse on the render. As a general rule, you may not divide income equally between spouses.
Virginia additions and subtractions with regard to trade, business, output of income or employment must be allocated to the spouse to whom they relate. For example, if one spouse owns an interest in an S pot that passes through income that is nontaxable from Virginia tax, that spouse must claim the subtraction for the income on the Virginia return .
Each spouse must claim his or her own exemptions. Exemptions for dependents may be allocated as the spouses mutually agree .
The key to receiving the maximal benefit is the allocation of exemptions and deductions. careful consideration should be given to the allocation of any exemptions for dependents. As a general rule, those exemptions should be allocated to the spouse who has the highest income, particularly if that person ‘s income is over $ 17,000 .