$200 Tax Rebates Coming To Virginia Taxpayers: 'It's Your Money'

Some Virginia taxpayers will be receiving a $200 tax rebate in October, according to Gov. Glenn Youngkin's office.

Eligible individual taxpayers will receive a rebate up to $200, while jointly filing taxpayers will receive up to $400. Youngkin said a $10 billion in surplus revenue has allowed for $9 billion in tax relief over his entire term.

"This fall’s tax rebate reflects a simple truth: it’s your money, not the government’s," Youngkin said in a statement. "We have made record investments supporting teachers and students, law enforcement, and Virginians facing behavioral health crises, while also lowering costs for individuals, families, veterans and small businesses."

Taxpayers will be eligible if they had a tax liability in 2024 and have filed their 2024 tax return by Nov. 3. Taxpayers who already filed their 2024 return do not need to take any action. The rebate will come via direct deposit for taxpayers who received a state tax refund by direct deposit this year. Other eligible taxpayers will receive the rebate as a check in the mail.

According to the Virginia Department of Taxation, taxpayers cannot be eligible if the rebate is more than their tax liability. For instance, people who only received disability, Social Security or unemployment benefits are not eligible because Virginia does not tax those types of income. Taxpayers who reduced tax liability below the rebate threshold through credits like the low income tax credit are not eligible. Virginians whose adjusted gross income was less than $11,950 for single filers and $23,900 for joint filers did not pay state taxes and are not eligible.

Rebate amounts may be reduced based on tax liability or money owed to a state or local agency. For example, a jointly filing couple who had a $350 tax liability would receive a $350 rebate rather than the full $400.

The state is required to use tax rebates to go toward any debts owed to a state or local agency, such as court fees. That will reduce the amount of the rebate, and taxpayers will be notified with details on where the money went.

The state will send eligible taxpayers who filed their returns by July 1 their rebates by Oct. 15. The rebates should be received by the end of October. Virginians may check their eligibility for a rebate at tax.virginia.gov/rebate.

Taxpayers should be aware that rebates could have an impact on the next tax return. During the last round of rebates in Virginia and other states in 2023, the IRS said Virginians do not include state payments for federal taxes "if the payment is a refund of state taxes paid and either the recipient claimed the standard deduction or itemized their deductions but did not receive a tax benefit."