-Do you need to file a Virginia Income Tax Return?
-IMPORTANT: Income Tax Changes Affecting 2007
-Tax Rate Schedule
-Commissioner's Tax Tips
-Age Deduction
-Estimated Tax

Virginia Individual Income Tax returns must be filed annually on or before May 1; however, there is no penalty for refund returns filed after the due date. Responsibilities of the Commissioner of the Revenue's Office include reviewing and processing tax returns for York County residents. Each return is reviewed for completeness, accuracy, and to ensure that each return uses the most advantageous filing status. Taxpayers are notified of any errors or omissions and allowed to correct these errors before the returns are forwarded to the Virginia Department of Taxation, which may prevent having to file an amended return later.

The staff will complete Virginia Individual Income Tax Returns for York County residents who visit the office with a copy of their Federal Income Tax return. There is no charge and no appointment is necessary. If you need forms or assistance, you may contact our office at (757) 890-3381 or you may contact the Department of Taxation at (804) 367-8031.

FEDERAL FORMS ARE NOT AVAILABLE in the Commissioner of the Revenue Office

IRS has evaluated the York County geographic area and has decided not to provide forms to the Office of the Commissioner of the Revenue. Federal forms are available at the following outlets:

         -York County Public Library in Tabb, 100 Long Green Blvd
   -US Post Office at 1451 George Washington Memorial Hwy in Gloucester Point
   -Newport News Public Library, 366 Deshazor Dr. Newport News
   -US Post Office at 17415 Warwick Blvd, Newport News.

IRS also offers the following:

         -Federal Forms can be downloaded seven days a week/24 hours a day on their website at:
        www.IRS.gov and clicking on "Forms and Publications."
        -Use the IRS web site to order forms, which should be received by mail within 10 days
         -Call toll-free, 1-800-TAX-FORM (1-800-829-3676) to order tax forms and publications
         -E-file for free, seven days a week/24 hours a day, on their website at: www.IRS.gov, click on
          "Individuals," and then click on "e-file" under "resources."

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YOU MUST FILE A VIRGINIA INCOME TAX RETURN IF YOU ARE::
     -Single and your VAGI is $7,000 or more
     -Married filing jointly and combined VAGI is $14,000 or more
     -Married filing separately and your VAGI is $7,000 or more

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ARE YOU ELIGIBLE TO CLAIM AN AGE DEDUCTION?
For 2007, taxpayers born on or before January 1, 1943, may qualify to claim an age deduction based on birth date, filing status and income. A taxpayer who claims an age deduction may NOT claim either of the following:

Disability Subtraction: If you claim an age deduction, you may not claim a disability subtraction. For married taxpayers, each spouse, if eligible, may claim either an age deduction or a disability subtraction. You should claim the deduction or subtraction that gives you the greatest tax benefit.

Credit for Low Income Individuals or Virginia Earned Income Credit: You may not claim both an age deduction and a credit for low income or Virginia Earned Income Credit. For married taxpayers filing separate returns, if one spouse claimed a credit for low income or Virginia Earned Income Credit, neither spouse can claim an age deduction.

If you or your spouse if you are married, are not claiming a disability subtraction or a credit for low income and your birth date is on or before January 1, 1943, please read the information below to determine if you qualify for an age deduction and how to determine the amount of the age deduction you may claim for 2007.

If your birth date is:

On or before January 1, 1939: You may claim an age deduction of $12,000. If you are married, each spouse born on or before January 1, 1939, may claim a $12,000 age deduction. For individuals born after January 1, 1939, the age deduction is based on the criteria below.
On or between January 2, 1939, and January 1, 1942: Your age deduction is based on your income. A taxpayer's income, for purposes of determining an income-based age deduction is the taxpayer' s adjusted federal adjusted gross income or "AFAGI." A taxpayer's AFAGI is the taxpayer's federal adjusted gross income, modified for any fixed date conformity adjustments, and reduced by any taxable Social Security and Tier 1 Railroad Benefits.

           -For Filing Status 1, Single Taxpayer, the maximum allowable age deduction of $12,000 is
            reduced $1 for every $1 the taxpayer's AFAGI exceeds $50,000.

           -For All Married Taxpayers, whether filing jointly or separately, the maximum allowable age
            deduction of $12,000 each is reduced $1 for every $1 the married taxpayers' joint AFAGI
            exceeds $75,000.

For more information regarding age deductions, please visit the Virginia Department of Taxation website.

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INCOME TAX PROVISIONS AFFECTING 2007 (information taken from the 2007 Virginia 760 tax booklet)
Advancement of Virginia's Fixed Date Conformity with the Internal Revenue Code: The 2007 General Assembly enacted legislation that moved Virginia's fixed date conformity with the Internal Revenue Code from December 31, 2005 to December 31, 2006. At the time these instructions went to print, the only required adjustments for "fixed date conformity" were: (i) the special 30% and 50% bonus depreciation allowance for certain assets under the IRC, and (ii) the 5-year net operating loss (NOL) carry back allowed for net operating losses generated in taxable year 2001 or 2002. If federal legislation is enacted that results in changes to the Internal Revenue Code for the 2007 taxable year, taxpayers may be required to make adjustments to their Virginia returns that are not described in the instruction booklet. Log on to: www.tax.virginia.gov for supplemental instructions.

Subtraction for certain death benefits: For 2007, you may subtract death benefit payments received from an annuity contract, to the extent that the payments were subject to federal income taxation.

Deduction for sales tax paid on energy efficient appliances: For 2007, you may claim a deduction equal to 20% of the sales tax paid on purchases of approved energy efficient equipment and appliances. The equipment and appliances must meet or exceed the applicable energy star efficiency requirements developed by the United States Environmental Protection Agency and the United States Department of Energy. Deductions cannot exceed $500 for the taxable year.

Income tax deduction for unreimbursed organ donor expenses: Beginning in 2007, you can claim an income tax deduction for unreimbursed expenses that are paid by an organ and tissue donor and that have not been taken as a medical deduction on your federal income tax return. The amount of the deduction is the lesser of $5,000 or the actual amount paid by the taxpayer.

Adjustment for S corporation shareholders: If you a shareholder of an S corporation that is subject to the bank franchise tax, you may subtract your allocable share of the income or gain of the S corporation, to the extent that it was included in your federal adjusted gross income. You are also required to add back your share of the losses or deduction of the S corporation, to the extent that it was included in federal adjusted gross income. Finally, you must also add back any distributions paid or distributed to you by the S corporation, to the extent the distributions were excluded from your federal adjusted gross income.

Contributions to the Martin Luther King, Jr. Living History and Public Policy Center Fund: For 2007, there is a new refund check-off for contributions to the Martin Luther King, Jr. Living History and Public Policy Center Fund. The permanent memorial to Dr. King required by state law is a consortium of public and private institutions of higher education which continues the work and perpetuates the legacy of Dr. King through a "virtual center."

Repeal of the Virginia Estate Tax: Legislation enacted by the 2006 General Assembly, House Bill 5018, repeals the Virginia estate tax for the estates of decedents whose date of death occurs on or after July 1, 2007. The estates of decedents whose date of death occurs before July 1, 2007, remain subject to the estate tax provisions. In addition, the repeal of the Virginia estate tax does not affect the filing requirements for fiduciary income tax, regardless of when the date of death occurs.

For additional information regarding this information, please visit www.tax.virginia.gov.

REMINDER:
Automatic Six-Month Extension for Filing Income Tax Returns:
      -No application for an extension is required.
      -This extension does extend the time to pay.
      -You must pay at least 90% of your tax due by the original due date using a new voucher, Form 760IP.
      -If you file your return within the extension date, and you did not pay at least 90% of your tax due, you will
       be subject to an extension penalty of 2% (formerly � %) per month. The extension penalty is applied to
       the balance of the tax that was due, May 1, 2008, through the date the return is filed. The maximum
       extension penalty is 12%.
      -If you file more than six-months after the original due date, the extension will not apply, and you will be
       subject to the late filing penalty of 6% of the tax due per month or part of a month, not to exceed 30%.
      -Interest will be charged on the tax due amount, even if you meet the 90% payment requirement for returns
       with an automatic six-month extension.

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Estimated Tax
Taxpayers who make Estimated Tax payments are required to file Form 760ES Voucher 1 annually on or before May 1 with the Commissioner of the Revenue's office. All subsequent payments are sent to the Treasurer of York County and should be filed in accordance with the due date on the respective voucher.

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In need of more information?
Try these Income Tax Links:

Commissioner's Tax Tips

Internal Revenue Service

Virginia Department of Taxation

State and Local Government on the Net