Earned Income Tax Credit for Low Income Taxpayers (language only)
Item 4-7.02 #1s
Item 4-7.02 #1s | | | |
| Statewide Plans |
| EARNED INCOME TAX CREDIT for LOW INCOME TAXPAYERS |
Language
Page 466, after line 27, insert:
"§ 4-7.02. EARNED INCOME TAX CREDIT FOR LOW-INCOME TAXPAYERS
A. As used in this section, unless the context requires otherwise:
"Family Virginia adjusted gross income" means the combined Virginia adjusted gross income of an individual, the individual's spouse, and any person claimed as a dependent on the individual's income tax return for the taxable year.
“Poverty guidelines” means the poverty guidelines for the forty-eight contiguous states and the District of Columbia updated annually in the Federal Register by the U.S. Department of Health and Human Services under the authority of § 673 (2) of the Omnibus Budget Reconciliation Act of 1981.
"Virginia adjusted gross income" has the same meaning as the term is defined in § 58.1-321, Code of Virginia.
B. For taxable years beginning on and after January 1, 2000, any individual or persons filing a joint return whose family Virginia adjusted gross income does not exceed one hundred percent of the poverty guideline amount corresponding to a household of an equal number of persons as listed in the poverty guidelines published during such taxable year, shall be allowed a credit against the tax levied pursuant to § 58.1-320, Code of Virginia, in an amount equal to $300 for each of the individual, the individual's spouse, and any person claimed as a dependent on the individual's or married persons' income tax return for the taxable year. For any taxable year in which a husband and wife file separate Virginia income tax returns, the credit provided under this section shall be allowed against the tax for only one of such two income tax returns. Additionally, the credit provided under this section shall not be allowed against such tax of a dependent of the individual or of married persons.
C. The amount of the credit provided pursuant to this section for any taxable year shall not exceed the individual's or married persons' Virginia income tax liability.
D. Notwithstanding any other provision of this section, such credit shall not be allowed in any taxable year in which the individual, the individual's spouse, or both, or any person claimed as a dependent on such individual's or married persons' income tax return, claims one or any combination of the following on his or their income tax return for such taxable year:
1. The subtraction under subdivision 11 of subsection C of § 58.1-322
, Code of Virginia;
2. The subtraction under subdivision 23 of subsection C of § 58.1-322
, Code of Virginia;
3. The subtraction under subdivision 24 of subsection C of § 58.1-322
, Code of Virginia, or;
4. The subtraction for the additional personal exemption for blind or aged taxpayers under subdivision 2 a of subsection D of § 58.1-322
, Code of Virginia."
Explanation
(This amendment provides a non-refundable tax credit equal to $300 per personal and dependent exemption for Virginia taxpayers with incomes at or below the federal poverty level. The credit would eliminate the state income tax liability for these taxpayers.)