Extension of Due Dates for Individual Income Tax Returns and Payments for Victims of Hurricane Helene

Virginia will provide extensions and penalty and interest waivers for individual and fiduciary taxpayers who are unable to meet their income tax filing and payment obligations due to Hurricane Helene. This applies to returns and payments on or after September 25, 2024, but on or before May 1, 2025.

The relief applies to taxpayers located in the following localities: 

• City of Galax 
• Grayson County  
• Smyth County 
• Tazewell County 
• Washington County 
• Wise County 
• Wythe County 

If additional localities are declared as disaster areas, they will also qualify for relief.  

Impacted taxpayers do not need to take action. These extensions and waivers are automatic as long as the missing returns and payments are made by June 1, 2025. 

Penalty and interest waivers for other state taxes 

Impacted taxpayers that can demonstrate a hardship attributable to Hurricane Helene should submit a written request for penalty and interest waivers for any non-income taxes due on or after the disaster to the following address: 

Virginia Department of Taxation
Customer Service Section Severe Storm Relief
P.O. Box 1115 
Richmond, VA 23218-1115 

For more information, please see Tax Bulletin 24-7. 

View Tax Bulletin

Virginia's interest rates will remain the same for the fourth quarter of 2024. Federal rates remain unchanged. State and certain local interest rates are subject to change
every quarter due to changes in federal rates established pursuant to Internal Revenue Code (“IRC”) § 6621.

Federal rates for the fourth quarter of 2024 will be 8% for tax underpayments (assessments) and 8% for tax overpayments (refunds) by noncorporate taxpayers. Accordingly, the Virginia rates for the fourth quarter of 2024 will be 10% for tax underpayments (assessments) and 10% for tax overpayments (refunds).

Details about the interest rates for the fourth quarter of 2024 can be found in Tax Bulletin 24-6. 

Pass Through-Entities (PTEs) wanting to make a retroactive Pass-Through Entity Tax (PTET) election for Tax Year 2021 must do so on or before September 16, 2024.

Reminders about the Tax Year 2021 PTET

• Entities must file the Tax Year 2021 PTET electronically using a business account on our website (iFile). If you don't already have an account, you can set up one here.
• PTEs can make Tax Year 2021 PTET payments using the PTET-PMT eform or ACH credit.
• PTEs must make a payment either before or at the time they file the Tax Year 2021 PTET.
• There are no filing extensions or late filing options for the Tax Year 2021 PTET. Tax Year 2021 PTET returns will not be accepted after September 16, 2024, or without full payment of the Tax Year 2021 PTET.

More Information

Now available on the Virginia Tax website: our 2024 Legislative Summary, an overview of state and local tax laws passed this year.

The Summary includes a general description of enacted legislation affecting:

• State taxes administered by Virginia Tax, and
• Local taxes for which Virginia Tax assists with administration, or on which Virginia Tax renders advisory assistance.

References to chapter numbers are to the corresponding chapters in the Acts of Assembly, which may be viewed at: https://lis.virginia.gov. Effective dates of the legislation vary and are set out in each description.

In general, legislation affecting taxes administered by other state agencies is not included in the Summary.

The Summary is intended to provide a synopsis of enacted legislation and is for informational purposes only. The Summary is not a substitute for the actual state law, local ordinances, or tax related regulations. 

View the Legislative Summary

Virginia's interest rates will remain the same for the second quarter of 2024. Federal rates remain unchanged. State and certain local interest rates are subject to change
every quarter due to changes in federal rates established pursuant to Internal Revenue Code (“IRC”) § 6621.

Federal rates for the second quarter of 2024 will be 8% for tax underpayments (assessments) and 8% for tax overpayments (refunds) by noncorporate taxpayers. Accordingly, the Virginia rates for the second quarter of 2024 will be 10% for tax underpayments (assessments) and 10% for tax overpayments (refunds).

Details about the interest rates for the second quarter of 2024 can be found in Tax Bulletin 24-1.

View the Tax Bulletin

2021 PTET

Electing Pass-Through Entities (PTEs) can now file and pay their Tax Year 2021 Pass- Through Entity Tax (PTET) return through the electronic filing option (free fillable form) available on our online application for businesses. Tax Year 2021 returns must be filed using this option. If the PTE doesn’t already have an online business account with us, they’ll need to register for one on our website to file. Tax Year 2021 PTET returns are due September 16, 2024.

As a reminder, the PTET return (502PTET) must be filed electronically, and there is no waiver from the electronic filing requirement. Entities can also make PTET payments using the PTET-PMT eform or ACH credit. The Tax Year 2021 PTET return will not be accepted without full payment of the 2021 PTET. See the Tax Year 2021 PTET Guidelines for more information.

Tax Year 2023 PTET update 

Entities can now file the Tax Year 2023 PTET using approved tax preparation software. Our electronic filing option (free fillable form) will be available this spring.

Schedule VK-1 reminder 

If an entity is completing a Schedule VK-1, please ensure it correctly identifies the owners that will be claiming the PTET credit. For example, if a PTET credit is passed to a grantor trust and the grantor is eligible to claim the PTET credit on their individual return, specify on the Schedule VK-1 the grantor’s name, social security number, and whether the entity type is a resident or nonresident.

More information 

PTET filing and payment requirements vary depending on the tax year. Please continue to monitor the Virginia Elective Pass-Through Entity Tax page of our website for additional updates.

Wednesday, Jan. 31, 2024, is the due date for submitting 2023 withholding records, including W-2 and 1099 forms. Issuers of 1099 documents can find specifications in our W-2/1099 guide for web upload. 

Filing Options

There are two free online filing options available to help you submit withholding records electronically:   

• eForms, a fast and free way to file and pay state taxes online; and
• Web Upload, which allows you to file and pay employer withholding and income tax statements.

We also accept corrected W-2s (or “W-2Cs”) for Tax Year 2021 and beyond. Use this form to update or change wage or withholding data. For Tax Year 2020 and prior years, payroll providers and employers will need to submit written copies of updated W-2s.

The authentication process (for both eForms and Web Upload) works the same way for W-2Cs and W-2s, so taxpayers should be prepared to enter requested withholding info to be authenticated.

More information about the Withholding Tax Deadline

Visit the Virginia Tax website for more information, or call the Virginia Tax Business Customer Service team at 804.367.8037.