Spouse Tax Adjustment

Use the calculator below to compute the Spouse Tax Adjustment (STA) amount to enter on your Virginia income tax return. The STA allows married couples to file joint returns without paying higher taxes than if they had filed separately.

Instructions:

Select tax year. Enter amounts for yourself and spouse in their respective columns. Select the calculate button. Then enter calculated results from below into your return.

Tax year

Wages, salaries, tips, etc.

(Federal Form 1040 line 7; 1040A line 7; 1040EZ line 1)

Y

S

(Federal Form 1040 line 7; 1040A line 7; 1040EZ line 1)
Taxable interest and dividend income

(Federal Form 1040 line 8a + 9a; 1040A line 8a + 9a; 1040EZ line 2)

Y

S

(Federal Form 1040 line 8a + 9a; 1040A line 8a + 9a; 1040EZ line 2)
Taxable refunds, credits, or offsets of state & local income taxes

(Federal Form 1040 line 10)

Y

S

(Federal Form 1040 line 10)
Business income

(Federal Form 1040 line 12)

Y

S

(Federal Form 1040 line 12)
Capital gains/losses and other gains/losses

(Federal Form 1040 line 13 + 14; 1040A line 10)

Y

S

(Federal Form 1040 line 13 + 14; 1040A line 10)
Taxable pensions, annuities, and IRA distributions

(Federal Form 1040 line 15b + 16b; 1040A line 11b + 12b)

Y

S

(Federal Form 1040 line 15b + 16b; 1040A line 11b + 12b)
Rental real estate, royalties, partnerships, S Corporations, trusts, etc.

(Federal Form 1040 line 17)

Y

S

(Federal Form 1040 line 17)
Alimony received, farm income (or loss), unemployment compensation, taxable Social Security, and other income

(Federal Form 1040 lines 11 + 18 + 19 + 20b + 21; 1040A lines 13 +14b; 1040EZ line 3)

Y

S

(Federal Form 1040 lines 11 + 18 + 19 + 20b + 21; 1040A lines 13 +14b; 1040EZ line 3)
Adjustments to gross income

(Federal Form 1040 line 36; 1040A line 20)

Y

S

(Federal Form 1040 line 36; 1040A line 20)
Total additions to FAGI

(VA Form 760, line 2)

Y

S

(VA Form 760, line 2)
Age Deduction

(VA Form 760, line 4)

Y

S

(VA Form 760, line 4)
Social Security Act and equivalent Tier 1 Railroad Retirement Act benefits

(VA Form 760, line 5)

Y

S

(VA Form 760, line 5)
State income tax refund or overpayment credit reported as income on your federal return

(VA Form 760, line 6)

Y

S

(VA Form 760, line 6)
Other subtractions

(VA Form 760, line 7)

Y

S

(VA Form 760, line 7)
Enter taxable income

(VA Form 760, line 16)

(VA Form 760, line 16)

Yourself

65 or older

Spouse

65 or older

Tax amount

VA Form 760, Line 17

Spouse's VAGI

VA Form 760, Line 18

Spouse Tax Adjustment

VA Form 760, Line 18

How it works:

Virginia tax rates increase with income: 2% up to $3,000; 3% from $3,000 to $5,000; 5% from $5,000 to $17,000; and 5.75% for income over $17,000. Both incomes reported on jointly filed returns benefit from the lower tax rates if the STA is used.

Married couples filing jointly on Form 760 may reduce their tax by up to $259 with the STA if each spouse received income during the taxable year.

Joint taxable income must be over $3,000 and both parties must have taxable income to benefit from this adjustment.

Two-income couples filing a joint return will not pay more tax than the combined tax that would be due if separate returns were filed.

Example:

A couple has combined Virginia taxable income of $47,000. One spouse's taxable income is $35,000 and the other spouse's taxable income is $12,000. Without the STA, their Virginia tax is $2,445. With the STA, both spouses benefit from the lower tax rates. Using the STA Calculator, the couple computes the STA of $220, reducing their taxes to $2,225.