Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: MONDAY, March 9, 1992 TAG: 9203060487
SECTION: BUSINESS PAGE: B5 EDITION: METRO
SOURCE: MAG POFF BUSINESS WRITER
DATELINE: LENGTH: Long
The accelerated program is offered in 40 localities this spring, including nine in Western Virginia. Roanoke isn't among them, at least this year.
Taxpayers in participating localities must indicate they want the service that promises delivery of the state tax refund in seven days, depending on the Postal Service.
To apply for an accelerated refund, Virginians who file the short state income tax form must check the box in the upper right-hand section of the return.
Long-form filers must attach Form 760AR to their returns. That document is included in the income tax packets sent by the state.
To qualify in either case, a taxpayer's name, address, Social Security number and filing status must be the same as on the 1990 return filed a year ago.
The accelerated refund program was tried last year as a pilot project in Virginia Beach, the state's largest city, and attracted more than 215,000 filers.
Under the new program, commissioners of revenue in the 40 localities send the tax information directly to the Virginia Department of Taxation in Richmond.
Carolyn Puryear, who handles the program for the Roanoke County Commissioner of Revenue's office, transmits the data on a computer linked to the state Department of Taxation in Richmond.
For taxpayers who select an accelerated refund, Puryear said, she keys in the information the day she receives it. If the return is free of errors, she said, the state authorizes the refund check overnight and has it in the mail within three days.
The state agency also offers Tele-Tax service, expanded this year to include business filers as well as individuals. People who call the phone number listed in their tax booklets can get round-the-clock answers to frequently asked questions. Between 8:30 a.m. and 4:30 p.m. they are connected to a state examiner.
Here are some other changes this year for Virginia tax returns, which must be filed by May 1:
\ Age deduction: Virginia has a new formula for computing the age deduction on the long form (Form 760) for people 62 and older.
As in the past, the deduction is based on age and applies to income received from any source, not just to retirement income.
For 1991 returns, taxpayers who were 62 to 64 as of Jan. 1, 1991, will receive a deduction of up to $6,000 from their federal adjusted gross income. Those 65 and older will have a deduction of up to $12,000.
The deduction still is limited by the amount of Social Security or Tier 1 Railroad retirement benefits. But there no longer is a requirement for adjusted gross income to equal or exceed the amount of the deduction.
For example, a 63-year-old taxpayer who has federal adjusted gross income of $16,500 and Social Security of $2,500 may subtract $3,500 ($6,000 minus $2,500 in Social Security).
A taxpayer of 63 who has federal adjusted gross income of $5,500 is still eligible to take the $6,000 deduction. If the taxpayer is filing jointly and the spouse qualifies for the age deduction, the extra $500 may be applied to the spouse's income.
\ Itemizing: Taxpayers who have federal adjusted gross income of $100,000 or more may claim only a certain percentage of the deductions. Those affected by the new limits must complete the itemized deductions worksheet in the Virginia instruction booklet to determine the amount of state tax to report on Form 760.
\ New credits:\ The state has two new tax credits for the 1991 filing year.
Landlords may qualify for an income tax credit if they reduce the rent by at least 15 percent for tenants who are 62 years or older or who are mentally or physically disabled.
Also, an income tax credit is available for individuals who purchase machinery and equipment used in manufacturing facilities or plants which produce recycled items for sale.
\ Refund checkoffs: Taxpayers may voluntarily donate all or a part of their income tax refunds to one or more organizations listed in returns. New to the list this year are the Family and Children's Trust Fund and the Elderly and Disabled Transportation Fund.
\ Out-of-state tax credit:\ Virginia residents must use Schedule CR, rather than Form 760, to claim credit for out-of-state taxes.
Retroactive to tax year 1987, Virginia residents may not claim credits for any tax not titled by other states as an income tax. This includes taxes paid to other states with respect to franchise, license, excise, unincorporated business and occupation taxes.
by CNB