What are state taxes?
A state income tax is a direct tax imposed by a state on income produced within or outside of the jurisdiction. It may mean all of your money generated wherever in your state of residence. State income tax, like federal tax, is self-assessed, which means taxpayers must complete a necessary state tax return.
Who is required to file these taxes in a certain state?
Up in a particular state, you must submit an income tax return if you are a resident of that state, a part-year resident, or a nonresident, you are obliged to file a federal income tax return, and your adjusted gross income is equal to or more than the levels specified for that state.
Should you submit a tax return if you owe nothing?
If you do not owe any taxes and will not receive a refund, you are not obligated to file. They do, however, examine and update our records on a regular basis to ensure that they have the relevant return information on file. As a result, even though you did not have to file a return for a certain year, they may send you a letter later requesting you to verify your state adjusted gross income.
What is the Filing Status?
In most cases, the filing status you select on your federal return will be the same as the status you use on your state return. Filers who are married should keep in mind that their filing status is partially determined by their residency status. A resident and a
nonresident cannot, in general, submit a joint or combined Virginia return. This is especially crucial for military personnel to consider while deciding on a filing status. Please carefully check the file status information.
Residents
You must utilize Filing Status 1 on your state income tax return if you filed as a Single, Head of Household, or Qualifying Widow(er). You may utilize this filing status if you and your spouse filed separate federal returns. Married filers should read the material
under Spouse Tax Adjustment carefully. The state income tax is levied at progressive rates, beginning at 2% and peaking at 5.75%. Using the Spouse Tax Adjustment can result in up to $259 in tax savings. To qualify for this adjustment, your joint taxable income must be greater than $3,000 each year.
Nonresidents
If you filed as Single, Head of Household, or Qualifying Widow(er) on your federal return, you must utilize Filing Status 1 on your state income tax return. If just one spouse earned money in that state, a separate return must be submitted under Status 4.
Part-Year Residents
Full-year and Part-Year. Residents use different filing options for their income tax returns. Full-year residents choose Filing Status 1 – Single, Head of Household, or Qualifying Widow(er). Married filers choose Filing Status 2 – Married, Filing a Joint Return or Separate Federal Return. State’s income tax is imposed at graduated rates, ranging from 2% to 5.75%. The highest rate applies to taxable income over $17,000. A married couple may elect to file a joint return under Filing Status 2 or a combined return under Form 760PY.
Income must be allocated to the spouse who earned the income and with respect to whose property the income is attributable. As a general rule, you may not divide income equally between spouses. Exemptions for dependents may be allocated as the spouses mutually agree. The key to receiving the maximum benefit is the allocation of exemptions and deductions.
Dates for Filing Individual Income Taxes
Most people are required to file their tax returns by May 1.
Filers for the fiscal year: Returns are due on the 15th of the fourth month after the end of your fiscal year.
If the deadline occurs on a Saturday, Sunday, or holiday, you have until the next business day to submit without penalty.
Extending the Deadline
Can’t meet the deadline? Several states permit an automatic 6-month extension to file your return (most taxpayers must file by November 1st). There is no need to apply. To prevent further fines and interest, you must still pay any taxes owing on schedule.
- Military Personnel
- Living Abroad
- or Traveling Outside the United States Foreign Income Exclusion
If you missed the deadline and still owe taxes, pay as much as you can as soon as possible to avoid further penalties and interest.
You have two choices:
- If you haven’t yet submitted your tax return, you should do so as soon as possible.
- If you are still unable to file your return, make an extension payment online or by cheque using eForm 760IP. If you are paying by check, please include the Automatic extension payment voucher with your payment. Use the worksheet on the back of the State Automatic Extension Payment Voucher for Individuals to figure out how much to pay.
In all circumstances, you should pay as much as possible to decrease the amount of penalty and interest you’ll have to pay.
If you are unable to pay the entire amount owed, we will send you a bill to collect the balance owed, as well as any penalty and interest. You can contact them to set up a payment plan after you get a bill.