Legislative and Form Updates for Taxpayers in Virginia
Reporting and paying consumer use tax, conformity to IRC, electronic income tax payments, historic rehabilitation tax credit limitations, land preservation tax credit, and neighborhood assistance tax credit changes are among the legislative and form highlights affecting taxpayers in Virginia. These updates impact individual income tax returns and credits available for taxpayers in taxable years 2017 and 2018.
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Legislative and Form Highlights Reporting Consumer s Use Tax Taxpayers should report and pay consumer s use tax when filing their individual income tax return If no consumer s use tax is owed, the taxpayer should fill in the new bubble indicating no consumer s use tax due This field cannot be skipped in software Instructions now include a Sales Tax Estimator
Legislative and Form Highlights Conformity (House Bill 1521/Senate Bill 977) Advances the date of conformity to the IRC to December 31, 2016 (Tax Bulletin 17-1) This allows Virginia to conform to the United States Appreciation for Olympians and Paralympians Act of 2016 (H.R. 5946) Exclusion for medals and prize money received from the U.S. Olympic Committee for competition in the Olympic or Paralympic Games This exclusion does not apply to an individual if his/her adjusted gross income exceeds $500,000 ($1 million if filing jointly)
Individual Income Tax Payments Estimated Tax Payments (2017 Appropriation Act Item 275(K)(1)f)) For taxable years beginning on or after January 1, 2017, taxpayers who make individual income tax estimated payments are required to submit all of their income tax payments electronically if: Any installment payment of estimated tax exceeds $15,000 or Any payment made for an extension of time to file exceeds $15,000 or The taxpayer s total tax liability exceeds $60,000 in any taxable year Payments may be made online at www.tax.virginia.gov
Legislative and Form Highlights Historic Rehabilitation Tax Credit Limitation (House Bill 2460/ Senate Bill 1034) Taxpayers may claim up to $5 million per taxable year, not to exceed tax liability This applies for Taxable Years 2017 and 2018 only Excess may be carried over for 10 years Land Preservation Tax Credit (Senate Bill 963) Extends the $20,000 limitation on the amount of Land Preservation Tax Credits that a taxpayer may claim per taxable year to apply to Taxable Year 2017
Legislative and Form Highlights Neighborhood Assistance Act Tax Credit Changes (House Bill 1433/ Senate Bills 1165 and 1168) Provides that expenditures for teacher salaries count toward the requirement that at least 50% of a neighborhood organization's revenues be used to provide services to low-income persons or to eligible students with disabilities Requires that the Department of Education and Department of Social Services consider the past performance of neighborhood organizations Reviews of performance metrics, success in reaching targeted goals, and other measures of accountability may be established by regulations or guidelines
Legislative and Form Highlights Extension of Sunset Dates for Certain Tax Credits Motion Picture Production Tax Credit: Extended from January 1, 2019 to January 1, 2022 (House Bill 1665/Senate Bill 982) Worker Retraining Tax Credit: Extended from January 1, 2018 to January 1, 2022 (House Bill 1814/Senate Bill 1576) Telework Expenses Tax Credit: Extended from January 1, 2017 to January 1, 2022 (House Bill 1814/Senate Bill 1576)
