Virginia Refundable Earned Income Tax Credit: Who May Qualify

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Last Verified: September 23, 2026

Quick status

Virginia offers a refundable Virginia Earned Income Tax Credit for eligible taxpayers who qualified for the federal Earned Income Tax Credit.

Virginia Tax says the refundable state credit is equal to 20% of the federal EITC.

?Refundable? matters because the Virginia credit can be larger than the amount of Virginia income tax you owe. That is different from Virginia's non-refundable EITC and the Credit for Low Income Individuals, both of which are limited by tax liability.

The first question is therefore not simply ?Is my income low?? It is:

Did you qualify for the federal EITC on your federal income tax return?

If the answer is no, Virginia Tax says you do not qualify for the refundable Virginia EITC under this route.

Federal EITC comes first

The IRS describes the federal Earned Income Tax Credit as a tax break for low- to moderate-income workers and families.

Federal eligibility depends on IRS rules, and the amount can vary based on factors such as income, children or dependents, disability, and other criteria.

Virginia's refundable EITC uses your federal EITC as its starting point.

Virginia Tax says the state refundable credit equals 20% of the federal EITC.

For example, the formula is conceptually:

Virginia refundable EITC = 20% ? federal EITC

That formula does not mean everyone receives the same amount. Your Virginia credit depends on the federal EITC for which you actually qualify.

Refundable vs. non-refundable Virginia EITC

Virginia Tax lists both a refundable and a non-refundable Virginia EITC.

Both are described as equal to 20% of the federal EITC, but they work differently.

Refundable Virginia EITC

The refundable credit can exceed your Virginia tax liability.

Non-refundable Virginia EITC

The non-refundable version cannot exceed your Virginia tax liability.

The two versions are alternatives. Virginia Tax says you cannot claim the refundable Virginia EITC and the non-refundable Virginia EITC together.

You also cannot claim the Credit for Low Income Individuals at the same time

Virginia also offers the Credit for Low Income Individuals, or CLI.

Virginia Tax says you can claim only one of these income-based Virginia credits:

• refundable Virginia EITC,
• non-refundable Virginia EITC, or
• Credit for Low Income Individuals.

That makes comparison important. A taxpayer who appears eligible for more than one should review the current instructions and determine which permitted credit is more beneficial.

Do not add them together.

Basic path to the refundable Virginia EITC

A practical screening path is:

Step 1: Determine whether you qualify for the federal EITC

Use current IRS eligibility rules and your federal tax return.

The IRS says federal EITC eligibility is generally for low- to moderate-income workers and families, but the exact rules depend on the taxpayer's facts.

Step 2: Check Virginia-specific exclusions

Virginia adds restrictions that can make a taxpayer ineligible for the state credit even when the federal EITC is relevant.

Step 3: Make sure you are not claiming an incompatible Virginia credit

You cannot combine the refundable Virginia EITC with CLI or the non-refundable Virginia EITC.

Step 4: Complete the Virginia Earned Income Credit section of Schedule ADJ

Virginia Tax instructs eligible taxpayers to complete the Virginia Earned Income Credit section of Schedule ADJ and attach it to the Virginia income tax return.

Virginia-specific situations that can block the credit

Virginia Tax says you may not claim the refundable Virginia EITC if you were claimed as a dependent on someone else's Virginia income tax return.

The agency also lists several exemptions, deductions, or subtractions that can conflict with this credit when claimed by you, your spouse, or a dependent listed on your return.

The official list includes:

• subtraction for wages or salaries received by members of the Virginia National Guard,
• subtraction for up to $15,000 of military basic pay for certain military service personnel on extended active duty,
• subtraction for up to $15,000 of salary for a qualifying federal or state employee whose annual salary is $15,000 or less,
• additional personal exemption for blind or aged taxpayers, and
• age deduction.

If one of those situations applies, do not assume federal EITC eligibility automatically carries over to the Virginia refundable credit.

Check the current Virginia instructions for the return you are filing.

What about the Credit for Low Income Individuals?

CLI uses a different eligibility structure.

Virginia Tax says CLI eligibility is based on family Virginia adjusted gross income being below federal poverty guidelines.

The Virginia Tax source reviewed for this article contains a poverty-guideline table labeled ?For 2024.?

Because this article is verified in 2026, that old table should not be treated as the current 2026 CLI eligibility threshold.

If you are comparing CLI with the Virginia EITC, use the current-year Virginia forms and instructions rather than copying an older income table from a prior year.

Why ?20% of the federal EITC? can still require careful checking

The formula sounds simple, but several different rules sit underneath it.

Your federal EITC must first be determined under IRS rules.

Then Virginia-specific eligibility restrictions apply.

Then you must choose among the Virginia income-based credits rather than claiming incompatible credits together.

That is why an online calculator or article should not tell you that you are ?guaranteed? a particular Virginia refund based only on household income.

How to claim the Virginia refundable EITC

Virginia Tax says eligible filers should:

1. determine the federal EITC they qualified to claim,

2. complete the Virginia Earned Income Credit section of Schedule ADJ, and

3. attach Schedule ADJ to the Virginia income tax return.

Use the forms and instructions for the tax year you are actually filing.

Tax rules and forms can change, so a prior-year Schedule ADJ or prior-year income table should not be assumed to control a current return.

What should you verify before filing?

Before claiming the refundable Virginia EITC, verify:

• that you qualified for the federal EITC,
• the federal EITC amount on the return you are filing,
• that you were not claimed as a dependent on another Virginia return,
• whether you, your spouse, or a dependent claimed one of Virginia's listed conflicting subtractions, exemptions, or deductions,
• that you are not also claiming CLI,
• that you are not also claiming the non-refundable Virginia EITC, and
• that you are using the current Schedule ADJ and current Virginia instructions.

If your situation involves military pay, age-related deductions, blindness exemptions, separate filing by spouses, or other special tax circumstances, use the current official instructions and consider qualified tax assistance if needed.

Federal refund timing is a separate issue

The IRS notes that federal refunds involving the federal EITC may be subject to a statutory delay, with the IRS required to wait until mid-February before issuing certain refunds that claim the EITC or Additional Child Tax Credit.

That is a federal refund-processing rule. It should not be confused with the amount of the Virginia refundable credit.

The safest way to compare your options

If you appear eligible for more than one Virginia income-based credit, do not assume that ?refundable? automatically means the best result for every taxpayer.

Virginia Tax says the credits cannot be combined, so compare the choices allowed for your situation using current forms and instructions.

The useful sequence is:

1. Finish or accurately determine your federal EITC.

2. Review Virginia-specific exclusions.

3. Compare the permitted Virginia credit options.

4. Use the current Schedule ADJ.

5. Keep the official calculation with your tax records.

Bottom line

Virginia's refundable Earned Income Tax Credit can be valuable because it is equal to 20% of an eligible taxpayer's federal EITC and can exceed Virginia tax liability.

But federal EITC eligibility is only the starting point.

Virginia has additional restrictions, and the refundable EITC cannot be claimed together with the Credit for Low Income Individuals or the non-refundable Virginia EITC.

Use current IRS rules for the federal credit and current Virginia Tax forms for the state credit. Do not rely on the 2024 CLI poverty table in the source page as if it were a 2026 threshold.

Official sources

Money Signal News is an independent information site and is not affiliated with Virginia Tax, the IRS, or any government agency. This article is general information, not individualized tax advice.