Virginia has made the following changes for the upcoming 2024 tax year:
Credits
- New Firearm Safety Device Tax Credit - Expanded to include safety devices beyond storage such as gun safes, gun cases, and lock boxes. Will now include any device installed on a firearm that is designed to prevent the use of the firearm without first deactivating the device.
- Agricultural Best Managements Practices Tax Credit - Sunset date has been extended to January 1, 2030.
- Conservation Tillage and Precision Agriculture Equipment Tax Credit - Sunset date has been extended to January 1, 2030.
- Communities of Opportunity Tax Credit - Sunset date extended to January 1, 2026.
- Changes to the Land Preservation Tax Credit - Starting from January 1, 2024, for taxable years commencing on or after that date, the maximum amount of the Land Preservation Tax Credit that a taxpayer can claim, inclusive of carried-over amounts from previous taxable years, is capped at $20,000.
Deductions
- Business Interest Deduction Increase - Beginning January 1, 2024, the Business Interest Deduction increases to 50%, up from 30%.
- Standard Deduction Increase - An increase of the standard deduction for tax year 2024, from $8,000 from $8,500 for single filers and from $16,000 to $17,000 for married filing jointly filers.
- Educator Deduction - Beginning with tax year 2022 through 2024 a credit is available for individuals for up to $500 of expenses paid for eligible educator qualifying expenses. According to Virginia, "An eligible educator is an individual for at least 900 hours during the taxable year served as a Virginia licensed teacher, instructor, student counselor, special needs personnel, principal, or student aide for public or private primary and secondary school students in Virginia.
Subtractions
- Changes to Virginia National Guard Income Subtraction - Starting from January 1, 2023, and for taxable years thereafter, individuals earning wages or salaries from active or inactive service in the Virginia National Guard, with a rank of O6 and below, have the right to a deduction. This deduction is capped at the income earned for 39 calendar days of service or $5,500, whichever is lower. Further information can be found under the "Subtractions From Income" section in these instructions.
Changes to Military and Military Spouse Residency Status
Servicemembers serving under military orders or spouses of such servicemembers, are allowed to elect the use of the following locations for taxation: Either the residence (or domicile) of the member or of the spouse, or the permanent duty station of the member. Note, servicemembers and spouses do not have to elect the same residence for state taxation. The above is provided under the Servicemember Civil Relief Act (SCRA).