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What Virginia State Tax Credits Affect my Tax Refund Status?


What Virginia State Tax Credits Affect my Tax Refund Status?

by jscalona
Some states have a wide variety of tax credits to help taxpayers with their state tax returns. Virginia is no different! They offer many tax credits that can raise your VA tax refund status. Here are some of the most useful ones for this tax season.

Rent Reduction
Do you own rental property and provide rent reductions to low income tenants? Then you may qualify for the Rent Reduction Program Credit. Your tenants must fit into certain criteria for you to get the credit.

  • Over the age of 62
  • Have a mental disability
  • Have been homeless at any time within 12 months

Also, the reduced rate must be 15% below the market rate. If you qualify for this, not only are you a good person, you can get a big break on your VA tax refund status!

Political Contributions
Helping out politicians with campaigns or contributing to elections is not only good for the country, it can help out your bank account as well. Virginia offers a Political Contributions Credit that’s good for 50% of contributions for state and local offices. It cannot exceed $25 for an individual taxpayer or $50 for taxpayers filing a joint return.

The credit is non-refundable and unused credit cannot be forwarded to following years. Make sure to log this one for a quick and easy addition to your VA tax refund status.

Low Income Housing
If you’re a Virginia taxpayer and you are able to claim the low income housing credit on your federal return, then you may be eligible for the state program. It’s a percentage of the federal credit and is subject to recapture just like the federal credit.

You may not claim more than your tax liability and you also must receive certification from the Virginia Department of Housing and Community Development. If you still qualify after all that, this can really help out your VA tax refund status!