Changes

Legislation passed by the 2004 General Assembly increases the standard deduction for married taxpayers, the filing thresholds for single and married individuals, and certain personal exemptions, beginning with taxable year 2005.

The new standard deduction amounts are:
Single filers (no change)                    $3,000
Married, filing jointly                         $6,000
Married, filing separately                   $3,000

The new filing threshold amounts are:
Single filers                                      $7,000
Married, filing jointly                        $14,000
Married, filing separately                  $7,000

The new personal exemption amounts are:
Yourself                                           $900
Your Spouse                                    $900
Dependents (each exemption)           $900
Age 65 or over (no change)              $800
Legally Blind (no change)                  $800

Virginia Earned Income Credit
You may be eligible to claim a credit for low income if your family Virginia adjusted gross income (family VAGI) is equal to or less than the federal poverty guidelines and you meet the Eligibility Requirements. You are eligible for the Virginia Earned Income Credit if you claimed an earned income credit on your federal return. Claim the credit that benefits you most. You cannot claim both credits, however.  See Page 22 of the Instruction booklet for additional information.