What is the Purchase of Long-Term Care Insurance Credit?

Individuals may claim a credit equal to 15% of the amount paid by the individual during the taxable year in eligible long-term care insurance premiums for long-term care insurance coverage for himself, but the total credits for any policy may not exceed 15% of the amount of premiums paid for the first 12 months of coverage. Any unused credit may be carried forward for the next five taxable years. In order to determine the amount of eligible premiums that may be used as a basis for this credit, the individual must subtract any amount actually included as a deduction on Line 4 of Schedule A of the individual's federal income tax return. In addition, the individual may not claim this credit to the extent the same premiums have been used to claim the Virginia deduction for long-term health care premiums. It may be possible, however, for an individual to claim this credit and the Virginia deduction in the same year. Please see the example below.

This credit is based on the amount paid during the taxable year, even if the months covered by the policy extend into the following taxable year. For example, if an individual purchased a policy on July 1 and paid for 12 months, he would base his credit on the entire payment, even though only six months of the coverage period would fall in the taxable year in which he claimed the credit. If however, the individual made payments on a monthly basis, he would claim a credit in the current taxable year for 6 months of premiums and a credit in the second year for the next six months of premiums in order to reach the allowed total of 12 months. In that case, the individual could also claim a deduction in the second year for the 6 months of premiums that were not used as a basis for the credit.

For more information, contact:

Virginia Department of Taxation
Tax Credit Unit
P.O. Box 715
Richmond, VA 23218-0715

or call 804-786-2992.

What is the Political Contribution Credit?

The Political Contribution Credit establishes a tax credit for individuals who make contributions to candidates for state or local political office equal to 50 percent of the amount of the contribution, subject to a $25 limit for individuals and a $50 limit for married taxpayers filing jointly.

What are estimated tax payments? What do I enter on this screen?

  • Enter any estimated tax payments you made for 2014.
  • Enter any amounts credited from your 2013 return.
  • Enter any amount prepaid with extension requests.
Do NOT enter any amount of your 2014 Virginia Income Tax withheld by your employer(s) as shown on any wage or tax statements.

What makes someone ineligible for the Low Income Credit?

The credit for low income may NOT be claimed if you, your spouse, or any dependents claimed on your return or on your spouse's return claim any of the following:
  • Age deduction
  • Exemption for taxpayers who are blind or age 65 and over
  • Virginia National Guard subtraction
  • Basic Military pay subtraction
  • Federal & State employee subtraction for earnings of $15,000 or less
  • You are claimed as a dependent on another taxpayer's return.

How will contributions to the Public School Foundation be used?

Contributions will be used by eligible public school foundations established for the express purpose of implementing a public/private partnership to fund public school improvement projects approved by the local school board.

Do I need to file a Virginia return?

If your Virginia adjusted gross income is less than $11,950 ($23,900 if married), then your Virginia tax is automatically zero if you were a full-year resident of Virginia last year. You do not need to file a Virginia return unless you have a refund. If you have any Virginia tax withheld from your wages or any credits that will give you a Virginia refund, you need to file a Virginia return to get your refund.

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