Virginia Efile

[Christian]

I note our state efile forms 8453 and 8879 are not even going to become available until January 31st. The release date for the 8879 is not shown. Any Virginia preparer have a clue when state efiles can be sent ?

[Possi]

I just called Richmond. The verdict on Sch A (when not itemizing on the federal) is still out. She said you can e-file, BUT they are not processing any tax returns until legislation has been rendered on the outstanding issues. 

[Possi]

Christian, I just called again. TaxWise will allow me to e-file VA, but I'm not going to send any until after General Assembly is out. I'm afraid they will change the standard deduction for those not itemizing. Nobody knows. 

What are you doing? 

How about you, @Gail in Virginia? 

[Gail in Virginia]

I have filed a couple ofpartnerships, but I don't plan to do any individuals until the GA gets off the pot.  I don't want to have several to amend.

[Possi]

1 minute ago, Gail in Virginia said:

I have filed a couple ofpartnerships, but I don't plan to do any individuals until the GA gets off the pot.  I don't want to have several to amend.

I agree. I can efile the federal and when GA has posted the changes, I can send the state as un-linked. I might do that. I'm going to check with TW and see how long I have to send the state after the fed has been ack'd. 

[Catherine]

3 hours ago, Possi said:

see how long I have to send the state

Does it make a difference if you don't have e-file auth for the state?  Keep that one out of the to-sign pile.  Although if you have to piggyback the state return that might toss a wrench in the works.

[Gail in Virginia]

Virginia does not require you to piggy back.  I am trying to stall people on picking up their returns period until Virginia gets their act together.  Even if I filed it, Virginia has said they will accept them but not process them until the General Assembly decides on what it is going to do.  We have been late before, but this is the latest I can remember

 

[Possi]

On 1/30/2019 at 6:59 PM, Gail in Virginia said:

Virginia does not require you to piggy back.  I am trying to stall people on picking up their returns period until Virginia gets their act together.  Even if I filed it, Virginia has said they will accept them but not process them until the General Assembly decides on what it is going to do.  We have been late before, but this is the latest I can remember

 

I called again today. We are still holding. I sent an email to a very popular local newscaster. I hope something breaks loose soon. 

Here's one thing; I did a return today and her itemized deductions are only $600 away from her HOH standard. I could choose to itemize and let it fly. It would save her almost $500 in taxes, net. I wonder how many federal returns I have filed and should have done this. I hope not many. 

This really un-nerves me. I need to calm down, I know. But I've sent federals and will need new sigs for all these states, even if there is no change because of the dates. Sure as I let them fly as is, the standard will change or they will allow the A whether or not it was used on the federal. 

Ok, rant over. I feel better. 

[Christian]

The state is accepting them. Since they are not going to process them until the issue is addressed it should be up to them to make changes in a taxpayer's return if they increase the standard deduction. I have submitted no returns which itemize. If it requires I amend a few , oh well, as I do advise folks the state is holding things up and a change may be necessary. Oh,Possi who in this world has a breakout of nerves in the tax season ?  

[TAXMAN]

Do you all know when VA will get their efile for partnerships approved. I have several very simple that I would like to get rid of. Last word I saw was Va is still out on the standard vs schedule A.

[Gail in Virginia]

I have already e-filed several PTE with the state of Virginia (I use Pro-Series - other software may vary.)  I don't know when the General Assembly will agree and be ready for processing individuals.  They can be e-filed now, but may  require changing. 

[TAXMAN]

Have you been able to efile the VA-502 form?

[Hahn1040]

Along the lines of comparing itemized vs. standard for federal vs. state:  also look at using Sales Tax vs. State tax. 

In the past, I sometimes found that with AMT the net for federal and state was that using sales tax resulted in overall lower tax.  NOW With the $10,000 limit for the deduction for taxes, in some cases, it will save overall to use sales tax because the state does not subtract sales tax the way it subtracts state tax

Of course, this is a case by case evaluation.  AND certainly the states vary with this...

 

[Gail in Virginia]

22 hours ago, TAXMAN said:

Have you been able to efile the VA-502 form?

Yes, I have e-filed the VA 502 for 3 s-corps and 1 partnership so far that have been accepted.  

[Gail in Virginia]

The Virginia General Assembly finally passed legislation and the governor says he will sign it.  So now programmers just need to get it fixed, and we can move on.

[Burke]

Is there a link to this yet?

[Gail in Virginia]

My mistake - the two committees approved it Friday and the bill is expected to be passed and sent to the Governor Monday.  https://www.wdbj7.com/content/news/Agreement-on-Virginia-tax-relief-includes-October-refunds-505570781.html

Lnik is to local news story. 

[Gail in Virginia]

http://lis.virginia.gov/cgi-bin/legp604.exe?191+sum+SB1372

I think this is the senate bill that is going forward, if you want to track it Monday.

[Christian]

Gail, exercising the good manners bred into us here in Virginia has failed to mention that we may have no  governor to sign the enacted legislation. 

[Catherine]

58 minutes ago, Christian said:

we may have no  governor to sign

They'll get the janitor in to sign it, or something.  

[Gail in Virginia]

At the rate we are going, the janitor might get promoted to BE the governor.  And he might be as well qualified as many.

Sorry, Christian, sometimes those Virginia manners fail me.

[Hahn1040]

Just in:

https://tax.virginia.gov/sites/default/files/inline-files/tb-19-1-date-irc-conformity-advanced.pdf?utm_content=february_2018&utm_medium=email&utm_name=18_1_tax_bulletin&utm_source=govdelivery&utm_term=tax_preparer

This year they are going with Federal with 7 1/2% for medical so we don't have to make that adjustment. 

[Possi]

Thank you! I don't have time to post my opinion, but I hope VA spends their windfall well. 

[Pacun]

Processing Individual Income Tax Returns

Good afternoon,

Earlier today, the Governor signed legislation conforming Virginia’s tax laws to the federal Tax Cuts and Jobs Act. We are now able to prepare our systems to begin processing 2018 returns, and will start processing over Presidents’ Day weekend.

All 2018 tax forms and instructions are now available on our website.

As you know, our systems process returns in the order we receive them – first in/first out.

Once we process a taxpayer’s return, they can use the Where’s My Refund web app to get up-to-date information about their return status.

As you’d expect, we already have a significant backlog of returns, so taxpayers will experience slower turnaround times for refunds than they’re accustomed to until we have worked through the backlog.

We appreciate your help in ensuring that the taxpayer’s address is correct whether they’re filing electronically or on paper.

Please see the Tax Bulletin distributed earlier today for details about the legislation.

Thank you.  

[Pacun]

Under emergency legislation enacted by the 2019 General Assembly on February 15, 2019, Virginia's date of conformity to the terms of the Internal Revenue Code will advance from February 9, 2018, to December 31, 2018.

The new legislation allows Virginia to generally conform to the Tax Cuts and Jobs Act and the Bipartisan Budget Act of 2018 for Taxable Year 2018 and after. It also includes Virginia income tax law changes that may affect business taxpayers filing income tax returns for Taxable Year 2018 and after.

In addition, this legislation provides a refund of up to $110 for an individual or $220 for married persons filing a joint return. In order to receive a refund, taxpayers need to file a complete return for Taxable Year 2018 before July 1, 2019. A refund is allowed up to the amount of a taxpayer’s tax liability after the application of any deductions, subtractions, or credits to which the individual or married persons are otherwise entitled. Such refunds are required to be issued on or after October 1, 2019, but before October 15, 2019.

This legislation also includes Virginia income tax law changes that may affect individual taxpayers filing income tax returns for Taxable Year 2019 and after. We will publish additional guidance regarding such provisions soon.

Tax Bulletin 19-1 details the conformity adjustments that may be necessary and provides more information on how the changes affect 2018 Virginia income tax returns.

View the Tax Bulletin

Additionally, Virginia will continue to deconform from:

• Bonus depreciation allowed for certain assets under federal income taxation;
• Five-year carry back of certain net operating losses (“NOLs”) generated in Taxable Years 2008 and 2009;
• Tax exclusions related to cancellation of debt income; and
• Tax deductions related to the application of the applicable high yield debt obligation rules.

If you have additional questions, please visit our website at www.tax.virginia.gov, or contact us at 804.367.8031 for individual income tax questions and 804.367.8037 for business tax questions.