Virginia Minimum Income for filing

[NCIII]

Virginia State does not require a married couple to file, or pay, state taxes if their combined adjusted gross income for Virginia is less than $23,900. Why does Turbo Tax Virginia State software calculate a tax owed if a couple's combined adjusted gross income for Virginia is below this threshold?.

We filed last year based upon Turbo Tax's calculations and we told by the state that no taxes were owed and we received a refund for the taxes paid.

Again this year, Turbo Tax is showing an amount due to Virginia when our combined adjusted gross income for the state is below the filing threshold.

[DianeW777]

You are correct.  If you have no withholding and do not have any refund that you should receive, do not file this state return since your income on Line 1, Form 760, is below the filing threshold.  Be sure to check the full income (not the taxable income) that comes over from the federal return.

Use the one of the links below to delete your state return.

• Delete a state return from TurboTax CD/Download version
• Delete a state return from TurboTax Online version

If you do have a refund coming you will want to file the tax return to receive it. It's not quite clear why you are experiencing this situation. 

When testing this scenario (federal AGI less than $23,900), TurboTax does the right calculations to show zero tax. When the filing requirement is not met, you should not select to complete a VA tax return.  Be sure to check your filing requirement each year for potential tax filings.

[Edited: 03/23/2021 | 11:03a PST]

[NCIII]

Thank you for your response.  However, my questions was, why does Turbo Tax compute a tax owed for an individual or couple earning less than the amount below which no tax is owed? The Turbo Tax erroneously tells the user they owe tax to Virginia when, in fact, no tax is due.  This could conceivably cause hardship to any persons unable to fund the taxes Turbo Tax tells them is owed, even if they would ultimately receive a refund when the state processes the refund.

Can not Turbo Tax anticipate the Virginia State tax minimum adjusted gross income cutoff when determining taxes due and compute the owed taxes to zero dollars rather than using the tax table without regard to the income cutoff point?