2020 ProSeries/Virginia Readme
Release 2020.420
Contents
Items addressed in this release
Items addressed in previous releases
What's new for ProSeries/Virginia
Forms
Electronic filing
Items addressed in this release
- Underpayment of Estimated Tax - Updated to properly handle quarterly payments with an underpayment less than $150.
Items addressed in previous releases
Extension of Filing Date - Virginia has extended the individual income tax filing and payment deadline from April 15 to May 17.
Unemployment Exclusion - Forms and Schedules have been updated to properly handle the new unemployment exclusion adjustment from the federal return.
Retirement Distributions with Form 8915 - Calculation of retirement exclusion amount, when distribution is taken due to disaster or COVID-related event and a 8915 is filed, has been updated.
Section 67(e) Adjustment - The new federal adjustment to income for excess deductions of section 67(e) expenses (from Schedule K-1, box 11, code A) is now being included on the VA 760 PY Schedule of Income and the Taxpayer/Spouse Allocation Worksheet.
Itemized Deduction Allocation - improvements made for when filing a MFS Virginia return with a MFJ Federal return.
760C Q1 Payment - updated calculation of penalty on based on extended due dates in 2020.
Efile Validation - various improvements to enable successful efiling of Virginia returns.
General Error Messages - An error message was added to prevent the filing of returns with an RRB-1099-R and the newly added Form 8915-E until we can fully update the calculations in the program.
Unemployment Exclusion - Unemployment compensation exclusion handling has been updated to reflect reporting requirements in new Virginia DOT forms and instructions.
Form 8915-B, C, D deferred amounts - The program has been updated to allow for adjustments related to prior year Form 8915 amounts taxable in the current year.
Electronic payment requirement thresholds updated - Effective for payments made on and after July 1, 2021, individuals must submit all income tax payments electronically if any payment exceeds $2,500 or the sum of all payments is expected to exceed $10,000. This includes estimated, extension, and return payments.
What's new for ProSeries/Virginia
The following items are new for tax year 2020:
- Virginia’s fixed date conformity with the Internal Revenue Code: Virginia’s date of conformity
with the Internal Revenue Code (IRC) was advanced from December 31, 2018 to December 31, 2019,
subject to certain exceptions.
- Standard deduction: The Virginia standard deduction remains at $4,500 for individuals
and married taxpayers filing separately, and $9,000 for married taxpayers filing joint returns.
- Itemized deductions: For taxable years beginning on or after January 1, 2019, Virginia deconforms from the suspension of the
overall limitation on itemized deductions, commonly known as the Pease limitation. For Taxable Year 2020, Virginia will deconform from
the increase in the medical expense deduction. See Virginia Schedule A and the Schedule A Instructions for more information.
- New Addition and Subtraction Codes Related to Partnership-Level Federal Adjustments: For taxable years beginning on and after January 1, 2020, if an
individual partner is required to amend their Virginia return because of partnership-level federal adjustments, use new addition or subtraction codes.
- Recyclable Materials Tax Credit: For taxable years beginning on and after January 1, 2020, but before January 1, 2025, taxpayers may claim the Recyclable Materials
Processing Equipment Tax Credit for machinery and equipment used predominantly in or on the premises of facilities that are
predominantly engaged in advanced recycling.
- Research and Development Tax Credits: For taxable years beginning on and after July 1, 2020, the application due date for
the Forms MRD and RDC has been extended from July 1 to September 1 of the calendar year following the close of the taxable year in which expenses
related to these credits were paid or incurred.
- Motion Picture Tax Credit: For taxable years beginning on and after July 1, 2020, but before January 1, 2027, the Virginia Film Office within
the Virginia Tourism Authority may issue and a taxpayer may claim Motion Picture Production Tax Credits in future fiscal years other than the taxable year in
which the Virginia production activities are completed. The Department is prohibited from paying interest on any prospective or future credits issued.
- Communities of Opportunity Tax Credit: For taxable years beginning on or after January 1, 2020, but before January 1, 2025, landlords renting a qualified housing
unit located in an eligible census tract within the Washington-Arlington-Alexandria Metropolitan Statistical Area may qualify for the Communities of Opportunity Tax Credit.
- Green Job Creation Tax Credit: The sunset date for the Green Job Creation Tax credit has been extended from January 1, 2021, to January 1, 2025.
Forms
The Virginia Department of Tax and Revenue has approved for filing all forms and
schedules included in the program.
Electronic filing
You can file returns electronically with this version of ProSeries/Virginia.
General information for electronic filing:
For a list of forms that can be e-filed, go to the What's New for Virginia in Help Center.
End of ReadMe file for ProSeries/Virginia