IRS: Some Virginia 2022 Tax Rebates Aren't Taxable
Many eligible Virginians received a tax stimulus rebate of up to $500 for 2022. Are those payments taxable?
If you owed money on your Virginia tax return in 2021, you were in luck in 2022. That's because the Virginia General Assembly passed a law giving some Virginia taxpayers a 2022 tax "stimulus" rebate of up to $250 for individual filers and up to $500 for joint filers.
Most of those rebates were sent by Oct. 31, 2022, but you had to have filed your 2021 Virginia individual income tax return by Nov. 1, 2022 to receive the Virginia tax rebate.
Is your 2022 Virginia tax rebate taxable?
If you received a Virginia tax rebate payment, you may have been wondering whether the amount will be taxable on your federal income tax return. Last February, the IRS announced that most of the special state payments that were sent to residents during 2022 won't be taxable on 2022 federal returns.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The IRS says if you received one of the Virginia 2022 tax rebates and claimed the standard deduction in 2021, or if you itemized deductions but didn’t receive a tax benefit, the special state tax rebate won’t be taxable on your 2022 federal income tax return. (An example of “not receiving a tax benefit” as a result of itemized deductions would be if the $10,000 limit on state and local tax (SALT) deductions applied on your return, according to the IRS.)
So, the good news is that if you took the standard deduction on your 2021 tax return, you shouldn't be taxed on the amount of your 2022 Virginia one-time tax rebate.
Virginia 2022 tax rebates
The one-time 2022 tax "stimulus" rebate check in Virginia is part of a recent trend. Other 2022 state stimulus checks were issued in more than twenty states, including California, New York, and Massachusetts, to name just a few. Several states are still sending "stimulus" checks and similar special rebate payments in 2023.
Other state "stimulus" checks
Many states were sitting on budget surpluses in part due to the influx of COVID-19 pandemic relief funds from the federal government.
But it’s important to know that these state tax rebate checks and state stimulus payments are different from the three rounds of COVID-19 stimulus payments you may have received from the federal government. That federal stimulus program has ended.
When did Virginia send tax rebates?
Virginia sent 2022 rebate payments in the order it received your tax return. If you filed your Virginia tax return by Sept. 5 and were eligible for the 2022 Virginia stimulus tax rebate, your rebate should have been sent by Oct. 17. So, you should have received it by Oct. 31, 2022.
Some taxpayers received a check in the mail and others received the 2022 Virginia tax rebate through direct deposit to their bank account. If you’ve moved since last year, the check may have been forwarded to your new address and if Virginia doesn’t have your banking information on file, you might have received a paper check in the mail.
Note: you had to file your 2021 Virginia tax return by November 1, 2022, to receive the rebate.
Are more federal stimulus checks coming?
It’s important to know that the 2022 Virginia tax rebate and other 2022 state tax rebate checks and state stimulus payments are different from the three rounds of COVID-19 stimulus payments that you may have received from the federal government in the recent past.
That federal stimulus check program has ended. However, many states are still sending special payments in 2023 and Virginia's latest budget provides for new rebate payments.
Related Content
As the senior tax editor at Kiplinger.com, Kelley R. Taylor simplifies federal and state tax information, news, and developments to help empower readers. Kelley has over two decades of experience advising on and covering education, law, finance, and tax as a corporate attorney and business journalist.
-
Six Ways Women Can Overcome Any Financial Obstacles Holding Them Back
To improve your financial situation, focus on empowering yourself first.
By Kiplinger Advisor Collective Published
-
Should You Enroll in Medicare if You Still Have a Job?
This question is being asked more than ever these days, so here’s what you can do when it comes to making Medicare decisions while you’re still working.
By Jae W. Oh Published
-
Six Tax Breaks That Get Better With Age
Tax Breaks Depending on your age, several tax credits, deductions, and amounts change — sometimes for the better.
By Kelley R. Taylor Last updated
-
How Much Richer Could You Be Without a Big Tax Refund?
Tax Refunds A big tax refund isn’t a reason to celebrate if you overpaid throughout the year. Here’s how much money your interest-free loan to the government could have cost you.
By Katelyn Washington Last updated
-
How to Calculate Your Adjusted Gross Income — and What It Means
Income Tax Your eligibility for certain money-saving tax breaks depends on your adjusted gross income.
By Ella Vincent Published
-
Ways to File Your Taxes for Free
Free Filing Tax season is in full swing, and if you’re looking to save money, there are several ways to file your taxes for free.
By Kelley R. Taylor Last updated
-
Biden Proposes New Homebuyer Tax Credits
Tax Credits President Biden is calling for new middle-class tax breaks including a mortgage tax credit.
By Kelley R. Taylor Last updated
-
IRS Issues Another Tax Warning for Wealthy, High Earners
Tax Enforcement Wealthy non-filers could pay more tax than they owe if the IRS files for them.
By Katelyn Washington Last updated
-
Types of Income the IRS Doesn't Tax
Income Tax It may feel like the IRS taxes most of your hard-earned money, but some types of income are nontaxable.
By Kelley R. Taylor Last updated
-
Why You’ll Still Pay Oklahoma Grocery Tax
State Tax Oklahoma is eliminating state grocery taxes, but that doesn’t mean groceries will be tax-free.
By Katelyn Washington Last updated