Some taxpayers will receive the rebate by direct deposit and some will receive a paper check
If you received your refund by direct deposit this year, you’ll likely receive your rebate by direct deposit in the same bank account. All other eligible taxpayers will receive their rebate by paper check in the mail.
Reasons you could receive a paper check:
- That’s how you received your refund,
- The bank account where you received your refund by direct deposit is closed or otherwise unavailable,
- We don’t have your bank account info on file from your refund,
- You owed money when you filed or didn’t receive a refund, or
- Your rebate was offset because of existing debts.
- Look for the description “VA DEPT TAXATION VATXREBATE” on your bank statement if your rebate is being delivered by direct deposit. Look for an envelope from us (“Commonwealth of Virginia, Department of Taxation”) if your rebate is being delivered by check.
We’re unable to update your bank account information or change your rebate method of payment
- If you've moved in the last year and have a current forwarding order with the USPS, your check will be forwarded to your new address.
- If the bank account where you received your Virginia refund by direct deposit is closed or otherwise unavailable, you’ll receive your rebate by paper check in the mail.
Some taxpayers’ rebates will be reduced or withheld to satisfy existing debts
If you owe money to certain government agencies and institutions, we are required to use your rebate to satisfy that debt before sending you the remainder in a check. If you owe more than the amount of your rebate, we will send you a letter explaining the use of your rebate toward the debt.
Do you need to pay taxes on the rebate?
If you took the standard deduction, you won’t need to take any action on your federal return related to the rebate.
If you itemized your deductions, you may be required to report the rebate amount you received as income on your federal return, depending on your circumstances. You’ll receive a Form 1099G, just like you would if you received a state tax refund. Please review IRS guidance on state tax payments and consult a tax professional if you have additional questions.