Virginia Resident Income Tax

[Harold C]

I am a practitioner in Florida, so I do not pretend to be an expert on Virginia Tax.  I rely on the ProSeries software to calculate the Virginia tax correctly once I have entered the correct income and deductions.

In 2019 my client's Resident Virginia Income Tax Return Form 760 showed Virginia Taxable Income of $11,465 and tax of $443.  This is correct, I looked it up in the Virginia Tax Tables. 

However, I found that to be surprising because his 2018 Form 760 showed Taxable Income of $13,481 and tax of Zero.   The tax should have been $545, per the 2018 Virginia Tax Table.

It now appears that ProSeries has calculated the 2018 Virginia Income Tax incorrectly.  Anybody have any thoughts?

[rbynaker · Accepted solution]

It's quirky.  If your VA AGI is below the filing threshold, it doesn't matter what the taxable income is, the tax will be $0.  For S/MFS the VA AGI amount is $11,950.  For MFJ it's $23,900.  My guess is that the AGI was lower in 2018 (assuming MFJ here) so no tax.  But 2019 income is higher than $23,900 so, tax.

See the bottom of printed Page 3 (PDF pages 9 or 11 depending on the year):

https://www.tax.virginia.gov/sites/default/files/vatax-pdf/2018-form-760-instructions.pdf

https://www.tax.virginia.gov/sites/default/files/vatax-pdf/2019-760-instructions.pdf

"Complete Form 760, Lines 1 through 9, to determine your
Virginia adjusted gross income (VAGI). If the amount on Line
9 is less than the amount shown below for your filing status,
your Virginia income tax is $0.00 and you are entitled to a
refund of any withholding or estimated tax paid."

Rick (in VA)

[Harold C]

Thank you, Rick in VA!  It is quirky to say the very least.  I get it now, thanks again.