Virginia Tax Rebates: What To Know About The One-Time Payment

RICHMOND, VA — Eligible Virginia taxpayers could receive a one-time tax rebate of up to $500 as early as next week thanks to a bipartisan law passed earlier this year, according to the state Department of Taxation.

The rebate was part of the state budget passed this year by the Virginia General Assembly. State officials expect to issue 3.2 million rebates by the end of the year, the Richmond Times-Dispatch reported.

The department will begin issuing the rebates Monday.

Here's how to check if you're eligible for the rebate, what you need to do, and how much you can expect to receive:

How do I know if I'm eligible?

Taxpayers who had a tax liability last year are eligible to receive the rebate, according to the Department of Taxation. Tax liability is the amount of tax a person owes throughout the year minus any credits, deductions or subtractions.

The Department of Taxation has not provided taxpayer-specific information about eligibility. The agency plans to launch an online tool to check eligibility on Monday. The tool will be available through www.tax.virginia.gov.

How much is the rebate?

If you had a tax liability last year, you will receive up to $250 if you filed individually and up to $500 if you filed jointly.

When will rebates be sent?

The Department of Taxation is issuing rebates in the order taxpayers filed their returns. If you're eligible and filed by July 1, your rebate will be sent by Oct. 17, which means you should receive it by Oct. 31.

About 2.9 million rebates are expected to arrive by October, the Times-Dispatch reported.

How will I receive the payment?

If you received your 2021 refund by direct deposit, you’ll likely receive your rebate by direct deposit in the same bank account. All other eligible taxpayers will receive their rebate as a paper check sent in the mail.

What if I owe money to another government agency?

If you owe money to certain government agencies and institutions, the state will use your rebate to satisfy that debt before sending you the remainder. If you owe more than the amount of your rebate, the state will send you a letter explaining the use of your rebates.