Schedule 763 ADJ: Schedule of Adjustments for Nonresidents (2024)
Virginia · Virginia Tax · Used for tax years 2024
Virginia Schedule 763 ADJ reports additions, subtractions, and deductions used with Form 763 for nonresidents. It also calculates the Tax Credit for Low-Income Individuals or Virginia Earned Income Credit and reports additions to tax, penalties, and interest.
Who files this form
The 2024 Virginia Schedule 763 ADJ is the Schedule of Adjustments for Nonresidents. It provides lines for reporting additions, subtractions, deductions, certain tax credits, and additions to tax, penalties, and interest with Form 763.
The form does not state a separate filing requirement or income threshold for this schedule.
What you'll need
- Form 763 and its instruction book: The schedule refers to them for adjustment codes, credit eligibility, and transferring totals.
- Your federal return: The schedule uses disability income reported on that return and any federal Earned Income Credit claimed.
- Family information for the credit calculation: Names, Social Security numbers, and family Virginia adjusted gross income (VAGI) information.
- An extra family schedule, if needed: If you have more than four exemptions, enclose a schedule listing names, SSNs, and VAGI.
- Schedule ADJS, if needed: Use it when you claim more additions, subtractions, or deductions than Schedule 763 ADJ allows.
Common mistakes
- Claiming both the disability income subtraction and the Age Deduction: The form says you cannot claim both. Claim the one that benefits you most.
- Using the spouse disability subtraction line without filing status 2: Line 5b is for your spouse's disability subtraction if you claim filing status 2.
- Leaving out extra adjustments: If your additions, subtractions, or deductions exceed the space available, use Schedule ADJS and check the box on Schedule 763 ADJ.
- Omitting family details when there are more than four exemptions: Enclose a schedule listing names, SSNs, and VAGI.
- Skipping the credit eligibility check: Line 11 directs you to the Poverty Guidelines Table in the Form 763 instruction book to see whether you qualify.
Questions people ask
Where do I transfer my adjustment totals?
Transfer total additions from Schedule 763 ADJ, line 3, to Form 763, line 2. Transfer total subtractions from line 7 to Form 763, line 7, and total deductions from line 9 to Form 763, line 13.
What if I need more space for adjustments?
Use Schedule ADJS if you are claiming more additions, subtractions, or deductions than Schedule 763 ADJ allows. Check the box on Schedule 763 ADJ.
Can I claim both the disability income subtraction and the Age Deduction?
No. The form says to claim the one that benefits you most.
How does the schedule calculate the credit amount?
If you qualify for the Tax Credit for Low-Income Individuals, line 13 multiplies the qualifying exemption count from line 12 by $300. Line 15 calculates 20% of the federal Earned Income Credit entered on line 14. Line 16 takes the greater of lines 13 and 15. Line 17 then limits the credit to the lesser of line 16 or the tax on Form 763, line 18. Enter the credit on Form 763, line 23.
Where do additions to tax, penalties, and interest go?
Enter them on lines 18 through 20. Add those amounts on line 21 and transfer the total to Form 763, line 32.