RICHMOND, Va. — Governor Ralph Northam signed legislation Friday that conforms Virginia's tax laws.
Tax laws will move to the federal Tax Cuts and Jobs Act and lets the Virginia Department of Taxation begin processing individual income tax returns.
Recent changes in federal tax law were set to bring in several billion dollars if state tax law went unchanged because of new federal limits on how businesses can account for losses and what kind of deductions individuals can take.
The legislation will give taxpayers refunds this year to compensate for higher state taxes on 2018 income. The rebate will be up to $110 for individual filers and $220 for couples.
“I am proud that we were able to work together to give Virginians the clarity they deserve during tax season,” said Governor Northam. “Now, because of this important compromise, Virginia taxpayers can properly prepare and file their taxes and our state personnel can start processing tax returns.”
“We are pleased that this bipartisan legislation provides certainty for taxpayers as they file their 2018 individual income tax returns,” said Secretary of Finance Aubrey Layne. “Most importantly, with the Governor’s signature on this legislation, the Virginia Department of Taxation can start processing 2018 individual income tax returns for people in the Commonwealth.”
The new law immediately lets taxpayers conform their state income levels with their federal levels, making tax filing much simpler.
Once a tax return is processed, any residents can check the status of the refund by using Where's My Refund application.
For more information about Virginia's taxes, click here.
