Virginia begins issuing one-time tax rebates this week

Eligible taxpayers will soon see one-time rebates coming their way, according to the Virginia Department of Taxation. Tax Commissioner Craig Burns gave lawmakers an update on Tuesday morning.

The General Assembly, with bipartisan support, approved one-time payments of up to $250 per individual and up to $500 per married couple earlier this summer.

Burns relayed that the payments would begin Friday, Sept. 16 as part of a “soft launch.” He said the disbursement will ramp up significantly next week, though they won’t all go out at once.

Starting Monday, Sept. 19, Burns said the state will issue 250,000 rebates per day, six days per week.  The Department of Taxation will continue issuing payments through the end of the calendar year for eligible returns filed by Nov. 1, 2022.

Burns said that rebates will be issued based on the order the state received and fully processed tax returns; he expects 2.9 million of 3.2 million total rebates will be issued by Oct. 10. He said those that filed their return by Sept. 5 should be in the first batch. For example, if an eligible taxpayer filed by July 1, the rebate will be issued by October 17, and received it October 31. He added that after a rebate is issued, direct deposits will take a few days to arrive, and checks will take a week or more.

Department of Taxation spokesperson Heather Cooper said the agency doesn’t have the capacity to release all the rebates at the same time, though additional resources were implemented to process the rebates quickly. Rebates will be issued via direct deposit and paper checks.

Burns said that those who owe money to certain government agencies and institutions may not receive a rebate, as the Taxation Department is required to first satisfy that debt. If the debt is less than the rebate amount, the remainder will be disbursed to the taxpayer. For those owing more than the rebate amount, a letter will be sent explaining the use of the rebate toward the debt.

On Monday, September 19, the Department of Taxation will launch two new tools to help Virginians determine if they are eligible for the rebate, for what amount they are eligible and when they can expect to receive the rebate. Taxpayers will be able to check their status via telephone or online.

Get more information here.