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 1)

Y

S

(Federal Form 1040, Line 1)
Taxable interest and dividend income

(Federal Form 1040, Lines 2b + 3b)

Y

S

(Federal Form 1040, Lines 2b + 3b)
Taxable refunds, credits, or offsets of state & local income taxes

(Federal Form 1040 Schedule 1, Line 10)

Y

S

(Federal Form 1040, Schedule 1, line 1)
Business income

(Federal Form 1040, Schedule 1, line 3)

Y

S

(Federal Form 1040, Schedule 1, line 3)
Capital gains/losses and other gains/losses

(Federal Form 1040, line 6)

Y

S

(Federal Form 1040, line 6)
Taxable pensions, annuities, and IRA distributions

(Federal Form 1040, lines 4b + 4d)

Y

S

(Federal Form 1040, lines 4b + 4d)
Rental real estate, royalties, partnerships, S Corporations, trusts, etc.

(Federal Form 1040, Schedule 1, line 5)

Y

S

(Federal Form 1040, Schedule 1, line 5)
Alimony received, farm income (or loss), unemployment compensation, taxable Social Security, and other income

(Federal Form 1040, Schedule 1, lines 2a, 6, 7, 8 and 1040 line 5b)

Y

S

(Federal Form 1040, Schedule 1, lines 2a, 6, 7, 8 and 1040 line 5b)
Adjustments to gross income

(Federal Form 1040, line 8a)

Y

S

(Federal Form 1040, line 8a)
Total additions to Federal Adjusted Gross Income

(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 15)

(VA Form 760, line 15)

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.