How to File Taxes with Confidence: Deductions, Refund Timelines, and What Virginians Should Know in 2026

Tax season is here, with plenty of changes at the state and federal level in terms of deductions. We know filing your state and federal income tax returns can be a real pain in the neck, so amid this changing landscape, we put together this Virginia 2026 tax filing guide to help you make the most of your deductions and keep more of what you earn.

The deadline to file your federal income tax returns is April 15, while the tax filing deadline in Virginia is May 1. In this blog, we’ll discuss tax deductions in Virginia as well as those at the federal level.

Who Must File State Income Taxes in Virginia

The income limits for those who must file state income tax returns in Virginia are based on their Virginia adjusted gross income (VAGI). These requirements apply to all residents, part-time residents, and nonresidents earning income from Virginia sources. We’ll explain how to calculate your VAGI below, but for 2025, these limits are:

• Individuals: $11,950 or more.
• Married couples filing jointly: $23,900 or more.
• Married couples filing separately: $11,950 or more.

Those who aren’t required to file an income tax return in Virginia might still benefit from doing so if they’re eligible for refunds or tax credits.

Who Must File Federal Income Taxes

The requirements for filing a federal income tax return are largely based gross income:

• Individuals: $15,750 or more.
• The head of a household: $23,625 or more.
• Married couples filing jointly: $31,500 or more (if both spouses are less than 65 years old), or $31,100 or more if one spouse is less than 65 years old.
• Married couples filing separately: $5 or more.
• Qualifying surviving spouse: $31,500 or more.

Even if you made less than these amounts, you still might want to file a return to get a refund on any taxes withheld by your employer. If you’re unsure if you need to file a federal tax return, the IRS has an online tool to help you determine this. The IRS has different income limits for those who are 65 and older, and for parents who have a blind dependent.

2025 Tax Deductions in Virginia

For the 2025 tax year, the standard deduction in Virginia for individuals is $8,750 for single filers and $17,500 for married couples filing jointly. Virginia taxpayers might also benefit from several tax credits and deductions that reduce their income tax liability.

The refundable Virginia Earned Income Tax Credit (EITC)

The refundable Virginia Earned Income Tax Credit (EITC) will increase from 15% to 20% of your federal EITC.

Those who claim this credit are prohibited from claiming a Credit for Low Income Individuals or a non-refundable Virginia Earned Income Tax Credit. Filers also can’t claim this credit if they’re claimed as a dependent on someone else’s Virginia income tax return or if you, your spouse, or any of your dependents claim any of these exemptions, deductions, or subtractions:

• Subtraction for wages or salaries by members of the Virginia National Guard.
• Subtraction for up to $15,000 of military basic pay for military personnel on extended active duty.
• Subtraction for up to $15,000 of salary for a federal or state employee whose annual salary is $15,000 or less.
• Personal exemption for blind or aged taxpayers.
• Age deductions and subtractions.

Credit for Low Income Individuals (CLI)

The Credit for Low Income Individuals (CLI) is an income tax credit of up to $300 per person that are dependent deduction claimed on your Virginia income tax or credit. The credit may not exceed your tax liability, and those who claim the CLI can’t also claim either of Virginia’s Earned Income Tax Credits. To qualify, your family’s total Virginia adjusted gross income (VAGI) must be below federal poverty guidelines (more on that below).

Filers may not claim this credit if they’re claimed as a dependent on someone else’s Virginia income tax return, or if you, your spouse, or your dependents listed on your return claim any of the exemptions, deductions, or subtractions listed in the (EITC) limits mentioned above.

Income Limits for Virginia’s Credit for Low Income Individuals (CLI)

To qualify for Virginia’s Credit for Low Income Individuals (CLI), your household’s VAGI must be below federal poverty guidelines. Eligible exemptions for this credit apply to personal exemptions only. Someone may not claim this credit if they also claim exemptions for blindness or age.

Under the 2025 Federal Poverty Guidelines, the VAGI limits depend on the number of people in your household:

• 1 Person: $15,650
• 2 People: $21,150
• 3 People: $26,650
• 4 People: $32,150
• 5 People: $37,650
• 6 People: $43,150
• 7 People: $48,650
• 8 People: $54,150

Add $5,500 per person for each additional member.

How To Calculate Your Virginia Adjusted Gross Income (VAGI)

You can calculate your Virginia adjusted gross income (VAGI) by taking the adjusted gross income from your federal income tax return, including your spouse if you are filing jointly, and that of any dependents you are claiming on your returns. Then add any required additions to income required by the state, and subtract any Social Security income you receive, as well as any allowable subtractions from income.

For married couples filing separately, only one of them may claim a state tax credit. They must include the other spouse’s VAGI and any others listed as the spouse’s dependents on their return. While one spouse may claim the CLI, the entire family’s VAGI is used in determining their tax credit eligibility.

Virginia Subtractions from Income

The Commonwealth of Virginia allows several deductions and subtractions when determining your VAGI, as well as many tax credits. Some of the more frequently used subtractions involve age, disability, and military status.

Deductions for Those Age 65 and Older in Virginia

Those who were born on or before Jan. 1, 1960, may qualify for an age deduction on their VAGI. For those who are married and filing jointly, each person may claim an age deduction based on their date of birth. Those born before Jan. 1, 1939, may claim an age deduction of $12,000.

For those born on or between Jan. 1, 1939, and Jan. 1, 1960, the age deduction is based on the taxpayer’s federal adjusted gross income, modified for any adjustments, and reduced by any taxable Social Security and Tier 1 Railroad Benefits. The deduction is reduced by the amount that the taxpayer’s federal adjusted gross income exceeds $50,000 for individuals or $75,000 for married couples filing jointly. This deduction is not eligible for those who claim the disability income subtraction.

The Commonwealth of Virginia has an Age Deduction Calculator to help taxpayers figure out their eligibility for the age deduction.

Deductions for the Disabled in Virginia

Qualified taxpayers who are disabled can deduct up to $20,000 of disability income as defined by the IRS. Filers cannot claim this subtraction if they also claim the Age Deduction for Taxpayers Age 65 and older.

Basic Military Pay Exemptions in Virginia

For active service members, up to $15,000 of their military basic pay may be exempted from their state income taxes. The subtraction is reduced on a dollar-for-dollar basis for those whose income exceeds $15,000 and is fully phased out when someone’s pay reaches $30,000. Military personnel must serve on active duty for 90 days or more and can be stationed inside or outside of Virginia.

​​​​​​​Tax Deductions for Federal and State Employees in Virginia

Those who work for the state or federal government who earned $15,000 or less may subtract up to $15,000 when determining their adjusted gross income. This includes those who work directly for the state as well as employees of state-supported institutions of higher education.

Those who are active military members, reservists, in the National Guard, or employees of the United States Postal Service are not eligible for this subtraction. Unearned income, such as pensions and annuities, is not considered in determining eligibility for this subtraction.

The Virginia Firearm Safety Device Credit

The Firearm Safety Device Credit used to apply only to firearm safety devices purchased from a federally licensed firearms dealer. This credit now also applies to safety devices purchased from a commercial retailer. To qualify, someone must purchase one or more firearm safety devices during the year from a commercial retailer. The credit is equal to the cost of the safety device, up to $300 (or $600 for married couples filing jointly, with each spouse submitting an application. Any unused credit can be carried forward for up to five years.

The commonwealth issues up to $5 million in firearm safety device credits per year, which are allocated on a first-come, first-served basis. Allowable devices include gun safes, gun cases, lockboxes, trigger locks, and any other locking device that can be used to store a firearm. Filers should save the receipt when they purchase their safety device so they can use it when applying for the credit.

How to Check Your Income Tax Refund Status in Virginia

Virginia refund timelines in 2026 depend on how you filed your returns. Electronically filed returns can take up to four weeks, whereas returns filed on paper can take up to eight weeks. For any returns sent by certified mail, taxpayers should allow an additional three weeks. To check the status of your refund, you can use Virginia’s online Where’s my Refund tool or call 804.367.2486 for an automated refund system. Both options are available 24 hours a day, 7 days a week. The Virginia Department of taxation declares that those who file electronically before Feb. 2 can expect their refund to be processed by March 9.

How to Check the Refund Status on Your Federal Income Tax Return

The IRS says you can check your refund status within 24 hours after filing a current year tax return electronically, or four weeks after filing on paper. You will need your Social Security number or individual taxpayer ID number (ITIN), your filing status, and the refund expected on your return.

How to File Taxes for Free in Virginia

In Virginia, there are several options to file your income taxes for free electronically, based on your income level. Members of the military can use one of these services or use MilTax, a free tax preparation program for active-duty service members, eligible family members, survivors, and recent veterans within one year of their separation from service. Eligible users can file at no cost, connect with a tax consultant for free, and file up to five state returns and their federal returns for no charge.

Federal Changes for the 2025 Tax Year

Of course, changes have also been made at the federal level that impact your tax returns. These include:

Tax Cuts Made Permanent

The 2017 tax cuts that were set to expire will remain in place, along with federal tax brackets of 10% to 37%. A near-doubling of the standard deduction is now permanent.

SALT Deduction Expanded

For 2025, the state and local tax deduction (SALT) from $10,000 to $40,000 per return, but only for households earning less than $500,000. For those above that limit, the deduction phases down to $10,000. This is set to expire after 2029.

Child Tax Credit Increase

The child tax credit will increase to $2,200 per child in 2025 and will be indexed for inflation thereafter.

Estate and Gift Tax Exemption is Set at $15 Million

The estate and gift tax exemption is $15 million per person and will be indexed for inflation thereafter.

Changes for Tipped Wages and Overtime

Tipped workers may deduct up to $25,000 of their tipped income if their total income is below $150,000 for single filers or $300,000 for joint filers.

Those who receive overtime can deduct up to $12,500 for single filers and $25,000 for joint filers for qualified overtime pay.

The Auto Loan Interest Deduction Returns

For 2025, individuals can deduct up to $10,000 of interest charges on loans for U.S. assembled vehicles, although only for loans that began after Dec. 31, 2024. This deduction phases out above incomes of $100,000 for individuals or $200,000 for joint filers.

Contact Us for Help with Tax Season Financial Planning

If you’d like to discuss any savings strategies for your refund or planning around tax payments, please contact us today to set up an appointment at one of our many locations in Virginia, West Virginia, and the Shenandoah Valley area. Let us help you achieve your financial goals and make your money work for you.