Now that Virginia Gov. Glenn Youngkin has signed a new 2023 Virginia budget, there’s an opportunity for eligible Virginia taxpayers to receive one-time tax rebates.
This is the second time in recent years that the Commonwealth has returned surplus revenue to Virginians. The move aligns with a trend where many states send residents so-called “stimulus” checks and tax rebate payments.
However, not everyone is eligible for the Virginia 2023 tax rebate. Here’s what details are available so far.
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Virginia tax rebate 2023
First and foremost, if you had a tax liability in the previous tax year, you could receive the 2023 Virginia rebate. (Tax liability is the amount of tax you owe throughout the year, considering factors like credits, deductions, or subtractions.)
Under the budget passed by Virginia lawmakers in September, eligible Virgininia single filers may receive up to $200, while joint filers can expect a rebate of up to $400.
- It’s important to note that to receive a rebate, you must file your taxes by Nov. 1.
- So, if you haven’t filed your 2022 Virginia tax return, be sure you do so by the November deadline.
- The Virginia Department of Taxation offers various filing options to facilitate the filing process.
How the Virginia tax rebates work
How you receive your rebate depends on how you received your Virginia tax refund. If you received a refund via direct deposit, your rebate will likely be deposited directly into the same bank account.
On the other hand, eligible Virginia taxpayers who didn’t receive tax refunds through direct deposit will receive their rebate via a paper check sent by mail.
Virginia Rebate FAQs
What if you’ve moved since you filed your return?
If you’ve moved within the past year and have a forwarding order with the USPS, your check will likely be rerouted to your new address. However, to ensure everything goes smoothly, Virginia’s Department of Taxation says it’s crucial to verify your up-to-date mailing address.
Unfortunately, Virginia officials say bank account information cannot be updated in time to receive a refund via direct deposit. So if your previously used bank account for Virginia refunds is no longer active, expect to receive a paper check.
When will you receive your Virginia tax rebate?
It’s unclear when the Virginia rebates for 2023 will be sent.
Can your Virginia rebate be withheld?
While this new Virginia tax rebate will be a welcome financial boost for eligible residents, it’s important to know that some taxpayers may see a portion of their rebate withheld to address existing debts.
- For example, suppose you owe money to certain government agencies and institutions. In that case, your rebate might be used to settle that debt before the Virginia Department of Revenue disburses any remaining amount to you.
- If your debt surpasses the value of your Virginia tax rebate, you should receive a letter from the Commonwealth explaining how your rebate was allocated to your debt.
Currently, the Department of Taxation says it cannot provide specifics of eligibility on a taxpayer-specific basis. It’s expected Virginia officials will provide additional details regarding the rebates soon.