In one state, citizens will be receiving $400 this summer, and as always, any type of stimulus check or state rebate tends to be quite a delightful surprise. In Virginia, a tax rebate of up to $400 will be issued to all eligible taxpayers in the state. While the $400 rebate will be a once-off payment, the payment is part of a state-based initiative. The backing for this one-time rebate comes from the state’s surplus funds and from the need to ensure that citizens are coping financially despite the increasing cost of living. The first group of taxpayers will be receiving their payments soon, and the payment date has already been confirmed.
State rebate due to budget amendments
In alignment with Virginia’s biennial budget bill, HB1600, approximately $977,8 million from the fund could be devoted to this tax rebate effort. Clearly, the rebate was proposed due to the fact that the revenue performance was so great. It was Governor Glenn Youngkin who mentioned that the revenue experienced favorable conditions, making it possible for the state to give back to loyal taxpayers.
The way this rebate works is that single tax filers receive up to $200, while married tax filers will receive about $400, so long as they filed their tax liability for the 2024 tax year. However, it is not too late for Virginia taxpayers to file their returns. Taxpayers in Virginia who file by November 3, 2025, will still be deemed eligible for this state rebate. Taxpayers do need to take note of the fact that the amount received will not exceed the amount that taxpayers paid.
More on the cards for Virginia taxpayers in the coming year
This once-off tax rebate is part of a broader initiative taken by the state to assist citizens to stay financially sound. Virginia, however, will take further actions to ensure residents are taken care of financially by:
- Increasing standard deduction: Set to take place in 2025, the standard deduction will increase to $8,750 for single filers and $17,500 for married couples who are filing jointly.
- Growing Earned Income Tax Credit (EITC): This refund credit will grow from 15% to 20% of the federal EITC.
- Tax-free weekend: Starting in August 2025, Virginians will enjoy a weekend where they will incur no added tax costs on clothes and school supplies.
- Higher Threshold for Estimated Taxes: Self-employed individuals and small business owners won’t be required to make tax payments unless their annual liability exceeds $1,000, up from the previously set $150 threshold.
All in all, Virginia is looking at state-based initiatives to ease the financial burdens of citizens. Most states are taking action and helping residents to stay financially afloat. Citizens in New York, too, will receive $400 financial incentive should they be deemed eligible.
First things first-confirmed payment date
Virginians can look forward to the first round of payments that will start in July. All those taxpayers who filed their tax returns before July can welcome a surprise in the form of a rebate check for the summer. According to the Virginia Department of Taxation, no tax rebate will be issued after October 15, 2025.
The system for these rebate checks follows a first-come, first-served basis, where Virginians who filed their taxes early and opted for the direct deposit payment method will see their returns come in faster than those who receive their returns via paper checks.
While the promise of this rebate is great, taxpayers who owe federal taxes or owe money to state agencies may have their rebate cut as per the Setoff Debt Collection Act. The state can choose to use the rebate towards any outstanding debts that the citizen may have.
Summer has gotten more exciting for residents in this state, who will be getting a refund from the state’s surplus fund coming their way. Early filing is all that is required to get this tax rebate earlier.
Disclaimer: Our coverage of stimulus checks, tax reliefs, tax rebates, tax credits, and other payments is based on the official sources listed in the article. All payment amounts and dates, as well as eligibility requirements, are subject to change by the governing institutions. Always consult the official source we provide to stay up to date and obtain information for your decision-making.
