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Category: Virginia

Virginia Credits

Political Contributions Credit

This is an available tax credit for individuals who make contributions to candidates for state or local political office equal to 50% of the amount of the contribution, subject to a $25 limit for individuals and a $50 limit for married taxpayers filing jointly.


Credit for Taxes Paid to Another State

You can enter the amount of credit for tax paid to another state that you claimed on Schedule OSC, line 21. 

Note: If you are filing a resident and non resident return, our program will calculate this credit for you.  If you are filing a part year return for either state, you will need to manually enter this credit.

Note:  Border State Method You may qualify for a special computation if you are required to file a return with
Virginia and only one other state provided that other state is Kentucky, Maryland, North Carolina or West Virginia. The income from the border state must consist solely of wages and salaries or business income from federal Schedule C, and your Virginia taxable income must be at least equal to the taxable income shown
on the other state’s return. If you meet all of these qualifications, fill in the border state oval and enter “100.0” in the Income Percentage field.

Note:  If you are a resident of Virginia and the income is from Arizona, District of Columbia, California or Oregon, the credit will usually be allowed on the nonresident income tax return of the other state and should not be claimed on the Virginia resident return.

Nonrefundable Credits

Conservation Tillage Equipment Credit - This credit may be claimed by an individual purchasing and using conservation tillage equipment for the purpose of agricultural production. The tax credit is 25% of the conservation tillage equipment expenditures made, or $4,000, whichever is less. Any amount of the credit unused this year may be carried over to the next five taxable years. Attach a statement to your return showing purchase date, description and credit computation when claiming this credit.


Neighborhood Assistance Act Tax Credit - The Virginia Neighborhood Assistance Act provides tax credits to businesses that donate money, property, limited professional services and contracting services directly to pre-approved Neighborhood Assistance Program organizations whose primary function is to benefit low income families, including but not limited to scholarships for K through 12 students attending nonpublic schools. Individuals may receive a credit for a donation of cash or marketable securities to an eligible organization.

Licensed veterinarians, physicians, dentists, nurses, nurse practitioners, physician assistants, chiropractors, optometrists, dental hygienists, pharmacists, professional counselors, clinical social workers, clinical psychologists, marriage and family therapists, and psychical therapists who donate their services for an approved clinic may also be eligible for credits.

Excess donor credit, it applicable, may be carried forward for the next five taxable years. For more information regarding the Neighborhood Assistance Act Tax Credit click here.

For additional information, please see the VA state instructions.