Virginia Form 760 Line by Line Guide
Did you know 9 states do not require residents to pay a personal income tax? Folks that live in Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming, are exempt from this bill. Furthermore, 7 other states simply enforce a flat tax rate. So what's the moral to the story? People who live in these states are able to buy more stuff because they pay less tax.
But for the rest of us, residential income tax is a necessary evil, one that takes a serious bite out of our disposable income. And while the forms are designed to collect the same data, they're all constructed differently. What follows is a breakdown of Form 760, the Virginia Individual Income Tax Return. If you don't live in Virginia, not to worry, we'll be tackling the other 34 states soon enough.
Compared to states like California and New York, Virginia's Form 760 is a joy to work through as it consists of a measly 31 Lines on 2 pages. You won't find a shorter form anywhere, and aside from the masterpiece the Vermont folks have come up with, this Virginia form is about the best in the country. So we're giving it an 8 of 10 on our user-friendly meter. Seriously this thing shouldn't take you more than an hour to complete.
Begin by filling in your name, address, and Social Security number at the top of the form. If any of those ovals off to the right apply, fill them in as well. Next take care of your filing status and exemptions. Virginia provides a $930 exemption for you and your spouse and if you're 65 or older (and/or blind), you'll get an additional $800 each.
Enter the amount of your federal adjusted gross income on Line 1. If you need to make any state-specific additions, work through a Schedule ADJ, and record the amount on Line 2. Now go ahead and add Lines 1 and 2 on Line 3. Line 4 provides for a deduction based on your age, just look up the instruction booklet to see if you qualify.
On Line 5 jot down any Social Security or railroad retirement benefits, and on Line 6 include your state income tax refund from last year. If you need to make any subtractions to your state adjusted gross income, include it on Line 7. Now add Lines 4 through 7 on Line 8 before subtracting Line 8 from Line 3 to get your final Virginia adjusted gross income or VAGI for short. Hey, that's the form's word, not mine.
If you itemized your deductions on your federal return, you'll have to itemize here. But if not, simply enter the standard deduction of $3,000 on Line 10. Line 11 is all about your exemptions; just carry forward the amounts from the exemption section at the top of the form.
If you needed to make any additional deductions to your VAGI, you'll have to fill out a Schedule ADJ and record it on Line 12. Now add Lines 10 through 12 on Line 13 before subtracting Line 13 from Line 9 to get your Virginia Taxable Income, which goes on Line 14.
On Line 15 write down the amount of tax (based on your income) from the tax table in the instruction booklet. Line 16 provides for a spousal tax adjustment; you need to reenter your VAGI and look up the instruction booklet to see if you can claim it. Now subtract Line 16 from Line 15 and put the net amount of your tax on Line 17.
Record your Virginia withholdings on Line 18 and any estimated tax payments on Line 19. If you filed an extension payment, include that amount on Line 20. If you get a tax credit for having a low income, or if you've got the Earned Income Credit coming to you, those amounts go on Line 21. On Line 22, you're due a credit for tax paid to another state; just attach a Schedule OSC if it applies. If any other credits apply, include a Schedule CR and record the amount on Line 23.
Now add Lines 18a, 18b, and 19 through 23 on Line 24. If Line 24 is less than Line 17, enter the difference on Line 25; this is the amount you owe. But if Line 17 is less than Line 24 enter that amount on Line 26 to show your overpayment. On Line 27 record the amount of your overpayment that you want to be applied to next year. On Line 28 record any voluntary contributions from an attached Schedule ADJ.
Now this is where Virginia form designers slipped up. After you add Lines 27 and 28 on Line 29, it's time to figure your refund or liability. But wait, you pretty much already did that. Here's the deal: if Line 26 is less than Line 29, enter the difference on Line 30 and that is what you owe. But if Line 26 is more than Line 29, enter that difference on Line 31. This is your refund. Avoid confusion by ignoring any verbiage followed by the word OR.
All that's left is to sign, date, jot down your phone number, and record your Social Security number at the bottom of the form. If you needed a tax pro to help you, they will have to do the same.
Aside from the stickiness at the end of Form 760, the Virginia Department of Revenue has done a nice job with its construction; it's damn near perfect. Sadly, it's not multipurpose, so it won't be able to do the dishes or wash your car, but when it comes to filing your state tax, the Form 760 will get the job done. And it will get it done in a blink of an eye.
