Last Verified: October 18, 2026
Virginia offers more than one income-based individual tax credit, and the names can make it sound as if an eligible taxpayer should claim all of them. Virginia Tax says otherwise.
The agency explains that taxpayers can claim only one of three related options: the Credit for Low Income Individuals, the non-refundable Virginia Earned Income Tax Credit, or the refundable Virginia Earned Income Tax Credit.
That makes this a comparison decision, not a stacking opportunity.
On this page
- The three Virginia choices
- You cannot claim all three
- Which credit starts with federal EITC eligibility?
- Why an old income table can cause mistakes
- Virginia-specific restrictions still matter
- Schedule ADJ is the key Virginia form
- A simple comparison path
- Refundable does not always mean “automatically better”
- What to verify before filing
- Why calculators can overstate the result
- Bottom line
- Related Money Signal News guides
- Official sources
The three Virginia choices
Credit for Low Income Individuals
The Credit for Low Income Individuals, often shortened to CLI, is based on family Virginia adjusted gross income and federal poverty guidelines.
Virginia Tax's public page currently includes a poverty-guideline table labeled for 2024. Because that table is not labeled as a 2026 table, it should not be reused as though it were the current-year threshold.
CLI is non-refundable. It can reduce Virginia income tax liability, but it is not designed to create a payment beyond the amount of tax otherwise due.
Non-refundable Virginia EITC
Virginia's non-refundable EITC is tied to the federal Earned Income Tax Credit.
Virginia Tax says the state non-refundable EITC equals 20% of the federal EITC.
Because it is non-refundable, the credit cannot exceed Virginia income tax liability.
Refundable Virginia EITC
Virginia also offers a refundable version of the EITC.
Virginia Tax says the refundable Virginia EITC equals 20% of the federal EITC for an eligible filer.
The key difference is refundability: a refundable credit can exceed the amount of Virginia income tax otherwise due.
You cannot claim all three
Virginia Tax explicitly says taxpayers can claim only one of these credits.
That means CLI cannot be claimed together with either Virginia EITC, and a taxpayer cannot claim both the refundable and non-refundable Virginia EITC.
If more than one option appears relevant, compare the permitted choices using the current Virginia instructions.
Which credit starts with federal EITC eligibility?
Both Virginia EITC options depend on the taxpayer qualifying for the federal Earned Income Tax Credit.
If there is no federal EITC, the Virginia EITC calculation does not simply arise because household income is low.
CLI uses a different framework tied to Virginia adjusted gross income and federal poverty guidelines.
This is why two households with similar incomes may face different credit choices.
Why an old income table can cause mistakes
Virginia Tax's page currently displays a CLI poverty-guideline table identified for 2024.
That historical table helps explain how CLI works, but it should not be copied into a 2026 guide or return as if it were the current threshold.
For a current filing decision, use the tax-year forms and Schedule ADJ instructions that apply to the return you are filing.
Virginia-specific restrictions still matter
Virginia Tax lists state-specific restrictions for the refundable Virginia EITC.
For example, the agency says a taxpayer may not claim that refundable credit if the taxpayer was claimed as a dependent on another person's Virginia income tax return.
Virginia also lists certain deductions, subtractions, or exemptions that can conflict with the refundable credit when claimed by the taxpayer, spouse, or dependent.
Those rules are one reason an expected state refund should not be estimated from household income alone.
Schedule ADJ is the key Virginia form
Virginia Tax directs taxpayers to use Schedule ADJ for these income-based credits.
The exact section and calculation depend on the credit selected.
Tax software may perform the comparison, but the filer should still understand which Virginia credit is actually being claimed and why.
If filing manually, use the instructions for the tax year being filed rather than a prior-year example.
A simple comparison path
Start with the federal return.
If you qualify for the federal EITC, note the actual federal EITC amount. That amount is the basis for the Virginia EITC calculation.
Then check whether any Virginia-specific exclusion or conflict applies.
Separately, review current CLI eligibility under the applicable Virginia rules.
Finally, compare the one permitted Virginia credit that produces the correct result for your return.
Refundable does not always mean “automatically better”
The refundable Virginia EITC has an obvious advantage when the credit exceeds tax liability, but that does not mean every filer should choose based only on the word refundable.
Eligibility restrictions, the federal EITC amount, filing status, family information, and Virginia-specific rules all matter.
The correct comparison is based on the actual return.
What to verify before filing
Before claiming one of these credits, verify:
- the tax year of the instructions,
- whether you qualify for the federal EITC,
- the federal EITC amount,
- current CLI income rules,
- whether another Virginia taxpayer claims you as a dependent,
- whether a Virginia subtraction, deduction, or exemption creates a conflict,
- and which single Virginia income-based credit is being claimed.
Why calculators can overstate the result
A weak online calculator may list every credit for which a taxpayer appears eligible and add the values together.
That is not appropriate here because Virginia Tax says these three credits are mutually exclusive.
Any tool or article that ignores that rule can overstate the expected Virginia tax benefit.
Bottom line
Virginia's Credit for Low Income Individuals and the two Virginia EITC options are related but different.
CLI uses a poverty-guideline framework. The Virginia EITC options depend on the federal EITC. The refundable and non-refundable versions differ in how they interact with tax liability.
Most importantly, Virginia Tax says you can claim only one of the three.
Use current-year Virginia forms before choosing among them, and do not reuse an older poverty table as a current eligibility threshold.
Related Money Signal News guides
Official sources
Money Signal News is an independent information site and is not affiliated with Virginia Tax. This article is general information, not individualized tax advice.