Question

Why do I qualify for Federal EIC but not for Virginia?

Forum|Forum|1 year ago
February 2, 2025
2 replies
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I am eligible for Federal EIC but not Virginia

There are several reasons that you might not qualify for Virginia EIC, even though you received the credit on your federal return.

According to Virginia Earned Income Tax Credit (Refundable) and Virginia Earned Income Tax Credit (Non-refundable) on the Virginia Earned Income Tax Credit (EITC) & Credit for Low Income Individuals page, you're not entitled to state EIC if:

you were claimed as a dependent on someone else’s Virginia income tax return, or
you, your spouse, or any dependent listed on your return claimed one or more of the following exemptions, deductions, or subtractions:
- subtraction for wages or salaries received by members of the Virginia National Guard
- subtraction for up to $15,000 of military basic pay for military service personnel on extended active duty
- subtraction for up to $15,000 of salary for a federal or state employee whose annual salary is $15,000 or less
- additional personal exemption for blind or aged taxpayers
- age deduction

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rogerp7

TT is saying I do not qualify for the Virginia low income credit, but I'm not disqualified based on any of the reasons given here. My income is definitely below the limit. How can I submit my numbers for review by Intuit to check if there is a bug with the program?

DawnC

Are you receiving one of the other, possibly larger, credits? If you have no tax liability, the only one you would qualify for is the refundable EIC. Verify your tax liability on your VA return.

Virginians with lower income may qualify for one (but only one) of several income-based tax credits (link has details):

Virginia Earned Income Tax Credit (Refundable)
Credit for Low Income Individuals
Virginia Earned Income Tax Credit (Non-refundable)

Both the Credit for Low Income Individuals and the non-refundable Earned Income Tax Credit cannot exceed the total amount of your tax. You can only claim one of these credits, so choose the one that benefits you most. @rogerp7

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A

AnnetteB6

Looking at your diagnostic tax file that you shared, I do see the message that states you are not eligible for the EITC on your Virginia return.

However, it does appear that there may be a situation that needs to be corrected with regard to the refundable credit. This is being reported for further investigation.

@rogerp7

[edited 2/8/2025 | 8:52 am PST]

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rogerp7

Thanks for reporting this for further investigation.

And just to add more information, in 2023 my return also had a negative number for Virginia taxable income, but TurboTax said I qualified for the refund.

DaveF1006

According to the State of VA, your EIC credit is based off of 15% of your federal earned income credit. If you did not receive an Earned income Credit on your federal return, then you weren't eligible to receive this on your state return.

You also may not claim this credit if

you were claimed as a dependent on someone else’s Virginia income tax return, or
you, your spouse, or any dependent listed on your return claimed one or more of the following exemptions, deductions, or subtractions:
- subtraction for wages or salaries received by members of the Virginia National Guard
- subtraction for up to $15,000 of military basic pay for military service personnel on extended active duty
- subtraction for up to $15,000 of salary for a federal or state employee whose annual salary is $15,000 or less
- additional personal exemption for blind or aged taxpayers
- age deduction