The Virginia Earned Income Tax Credit EITC for tax year 2026 continues to play a major role in supporting low and moderate income working families across the state. Closely tied to the federal Earned Income Tax Credit, the Virginia version offers a refundable benefit that can significantly increase a taxpayer’s refund. With filing season approaching and several important rules to understand, including the end of paper check refunds, this guide explains everything you need to know about Virginia EITC 2026 in clear, practical terms.
What the Virginia EITC Is and How It Works
The Virginia Earned Income Tax Credit is a state level tax credit available to taxpayers who qualify for the federal EITC. Virginia allows eligible filers to claim a refundable credit equal to a percentage of their federal credit, meaning the state can issue a refund even if no Virginia income tax is owed.
For tax year 2026, the refundable Virginia EITC remains in effect and is calculated as 20 percent of the federal Earned Income Tax Credit claimed on your federal return. Because it is refundable, it can increase the total refund amount deposited into your bank account.
Key points about how the credit works
- Eligibility starts with qualifying for the federal EITC
- The Virginia credit is calculated automatically once the federal amount is known
- Refundable means it can exceed your Virginia tax liability
- The credit is claimed when filing your Virginia state return
This structure makes the Virginia EITC simple to calculate but powerful in terms of financial impact.
Virginia EITC Refund Amounts for Tax Year 2026
Refund amounts under the Virginia EITC depend entirely on the size of your federal EITC. Since Virginia provides 20 percent of the federal credit, higher federal eligibility leads to a larger state refund.
Below is a general overview of potential refund amounts based on typical maximum federal EITC levels.
| Qualifying Children | Approximate Federal EITC | Virginia EITC at 20 Percent |
|---|---|---|
| No children | $664 | $133 |
| One child | $4,427 | $885 |
| Two children | $7,316 | $1,463 |
| Three or more children | $8,231 | $1,646 |
Actual refund amounts may be lower depending on income, filing status, and phase out rules. Even smaller credits, however, can make a meaningful difference for households living paycheck to paycheck.
Eligibility Requirements You Must Meet
To claim the Virginia Earned Income Tax Credit in 2026, taxpayers must meet specific eligibility criteria. These rules closely follow federal EITC guidelines with a few Virginia specific conditions.
You may qualify if
- You qualify for the federal Earned Income Tax Credit
- You have earned income from wages or self employment
- You file a Virginia resident or part year resident return
- You are not claimed as a dependent on another taxpayer’s return
You may not qualify if
- Your investment income exceeds federal limits
- You or your spouse claim certain Virginia specific subtractions that disqualify the credit
- You fail to include the federal EITC on your federal return
Married couples must file a joint return to claim the credit, and all Social Security numbers listed must be valid for employment.
Refund Delivery and the End of Paper Checks
One of the most important updates taxpayers need to know is that paper check refunds are discontinued. Virginia now issues EITC refunds only through electronic methods.
Available refund options include
- Direct deposit to a checking or savings account
- Debit card or other approved electronic refund methods
If you previously relied on paper checks, it is essential to provide accurate banking information when filing your return. Incorrect or missing account details can delay your refund.
Electronic refunds are generally faster and more secure, helping ensure that eligible families receive their money without unnecessary delays.
How to Claim the Virginia EITC on Your Tax Return
Claiming the Virginia Earned Income Tax Credit is straightforward if you already qualify for the federal EITC. The key is making sure all required forms are completed correctly.
Steps to claim the credit
- File your federal return and calculate your federal EITC
- Transfer the federal EITC amount to your Virginia return
- Complete the Earned Income Credit section on the appropriate Virginia schedule
- Choose electronic refund delivery and submit your return
Tax software typically calculates the Virginia EITC automatically, but reviewing the numbers is always recommended to avoid errors that could delay processing.
Common Mistakes That Can Delay or Reduce Your Refund
Despite the simplicity of the credit, mistakes are common and can lead to delayed refunds or denied claims. Being aware of these issues can help protect your refund.
Common errors include
- Incorrect Social Security numbers for children or spouses
- Claiming a child who does not meet residency or relationship rules
- Forgetting to include federal EITC information on the state return
- Entering wrong bank account details for electronic refunds
Double checking personal information and income figures before filing can save weeks of waiting and frustration.
What to Expect Beyond 2026
For tax year 2026, the refundable Virginia EITC remains available at 20 percent of the federal credit. However, its long term future depends on legislative decisions. Taxpayers should stay informed about potential changes that could affect credits in later years.
For now, eligible Virginians can confidently plan on claiming the credit for 2026, knowing it remains a valuable tool for reducing financial stress and increasing household stability.
The Virginia Earned Income Tax Credit continues to reward work, support families, and strengthen communities. By understanding the rules, refund amounts, and filing process, taxpayers can make sure they receive every dollar they are entitled to in 2026.