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Commonwealth of Virginia. Department of Taxation 2002 Legislative Update. Individual Income Tax Overview Filing Season 2002 Statistics as of October 16,2002. Refunds issued faster than ever before: Current Year Returns = 95% in 12 days or less

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commonwealth of virginia

Commonwealth of Virginia

Department of Taxation

2002 Legislative Update

individual income tax overview filing season 2002 statistics as of october 16 2002
Individual Income TaxOverview Filing Season 2002Statistics as of October 16,2002
  • Refunds issued faster than ever before:
    • Current Year Returns = 95% in 12 days or less
    • All individual returns = 92% in 12 days or less
    • Error Inventory at record low:
    • less than 48K in Inventory
    • Projected year end inventory is less than 10K
    • Last year, we had 248K inventory on October 16th and ended year at 173K in inventory

Filing Season 2002 is ranked best season ever!

topics of discussion
Topics of Discussion
  • Fixed Date Conformity
  • Tax Credits
  • Refund Checkoffs
  • Contributions to the General Fund
  • Form Changes
fixed date conformity
Fixed Date Conformity
  • Virginia laws conform to federal laws as they existed on December 31, 2001
  • Two laws passed by Congress will require adjustments to Virginia returns:
    • Victims of Terrorism Relief Act of 2001
    • Job Creation and Worker Assistance Act of 2002
fixed date conformity5
Fixed Date Conformity
  • Situations requiring special additions to Federal Adjusted Gross Income (FAGI):
    • Employee-Provided Death Benefits
    • Qualified Disaster Relief Payments
    • Disability Income
    • Foster Care Payments
    • Educator Expenses
    • Clean Fuel Vehicle Deduction
    • Bonus Depreciation
fixed date conformity6
Fixed Date Conformity

Bonus Depreciation

New Forms created for special depreciation adjustment:

Virginia Forms 4562 and 2106

To determine special Virginia depreciation adjustment:

Complete VA Forms 4562 and 2106

Subtract Virginia depreciation from federal depreciation

fixed date conformity7
Fixed Date Conformity
  • Situations requiring special subtractions from Federal Adjusted Gross Income (FAGI):
    • Bonus Depreciation
    • Subchapter S Corporation Discharge
fixed date conformity8
Fixed Date Conformity
  • 5-year NOL carryback
    • Must recalculate NOL carryback under the rules as of 12/31/01 for Virginia purposes
    • Two-year carryback for Virginia purposes
  • Clean Fuel Credit
    • Virginia credit reduced by 25%
tax credit
Tax Credit

Neighborhood Assistance Program Tax Credit

Tax credit equal to 45 percent of the monetary donation

As of July 1, 2002, minimum monetary donation eligible for a tax credit reduced from $900 to $500.

tax credit10
Tax Credit
  • Neighborhood Assistance Act Tax Credit - Qualifying Nursing Services
    • Effective July 1, 2002
    • Nurses are eligible for a tax credit under the Neighborhood Assistance Plan.
tax credit11
Tax Credit
  • Land Preservation Tax Credit - Amended
    • Tax Credit can be transferred to another taxpayer or corporation.
    • Taxpayer can subtract of any gain or income realized.
    • The income must have been included on the taxpayer’s federal income tax return.
refund checkoffs
Refund Checkoffs
  • Contributions to promote Organ and Tissue Donations Checkoff
  • Contributions to Public School Foundations Checkoff
  • 4-H Educational Centers Checkoff
  • Permanent Status for Housing Program Checkoff - Amended
contributions to the general fund
Effective July 1, 2002

Checks should be made payable to the State Treasurer

Tax Commissioner will receive payments and submit to State Treasurer monthly

With permission from donors, their names will be posted on department’s website

Contributions to the General Fund
form changes
Form 760

Separate name field for primary and secondary filers

Oval added for returns adjusted for fixed date conformity

Ovals for farmer, fisherman, merchant seaman and Coalfield credit moved to page 2

Form Changes
form changes15
Form Changes

Form 760-ADJ

Line 2a added to report Special Fixed Date Conformity additions

Line 6a added to report Special Fixed Date Conformity subtractions

Six-digit code boxes added to report voluntary contributions to School Foundations

form changes16
Form Changes

Form 760PY

Line 33 added to report Special Fixed Date Conformity additions

Line 37 added to report Special Fixed Date Conformity subtractions

form changes17
Form Changes

Form 763

Line 31 added to report Special Fixed Date Conformity additions

Line 38 added to report Special Fixed Date Conformity subtractions

form changes18
Form Changes

Form 760CG

Form updated for Special Fixed Date Conformity adjustments

Schedule INC replaces W2s and 1099s

New Schedule FED added to report information from Schedules C, C-EZ, 2106 and 4562

slide20

We look forward to working with the Tax Professional Community during the upcoming tax season. Together we can provide the taxpayers of Virginia excellent customer services, while working to keep the cost of government down.www.tax.state.va.us