Schedule 763 ADJ: Schedule of Adjustments for Nonresidents (2025)
Virginia · Virginia Tax · Used for tax years 2025
Virginia Schedule 763 ADJ is used with Form 763 to report additions and subtractions to adjusted gross income and deductions from Virginia adjusted gross income. It also calculates the Tax Credit for Low-Income Individuals or Virginia Earned Income Credit and reports additions to
Who files this form
Virginia Schedule 763 ADJ is the 2025 Schedule of Adjustments for Nonresidents. It is used with Form 763 to report additions, subtractions, deductions, certain credits, and additions to tax, penalties, and interest.
The form does not state specific filing requirements.
What you'll need
Have the following available for the parts you complete:
- Virginia Form 763 and its instructions. The schedule refers to them for adjustment codes, credit guidance, and the Poverty Guidelines Table.
- Your federal return, for disability income reported as wages and any federal Earned Income Credit claimed.
- Family names, Social Security numbers, and guideline income, if completing the credit section. If you report more than four exemptions, enclose a schedule listing each person's name, SSN, and Virginia adjusted gross income (VAGI).
- Schedule ADJS, if you claim more additions, subtractions, or deductions than Schedule 763 ADJ has room for.
- Schedule OSC, if you computed a Credit Paid to Another State, because that credit affects the limit calculated on Line 17.
Common mistakes
- Claiming both the disability subtraction and the Age Deduction. The form says you cannot claim both. Choose the one that benefits you most.
- Entering a spouse's disability subtraction without filing status 2. Line 5b is for a spouse's subtraction when claiming filing status 2.
- Running out of space without using Schedule ADJS. Use that schedule for additional additions, subtractions, or deductions, and check the box on Schedule 763 ADJ.
- Leaving out the extra family-income schedule. If you report more than four exemptions in the credit section, enclose the required list of names, SSNs, and VAGI.
- Skipping the credit eligibility check. Line 11 directs you to the Poverty Guidelines Table in the Form 763 instruction book.
Questions people ask
Where do I transfer my adjustment totals?
Transfer Schedule 763 ADJ Line 3 to Form 763, Line 2; Line 7 to Form 763, Line 7; and Line 9 to Form 763, Line 13.
What if I need more room for adjustments?
Use Schedule ADJS if you claim more additions, subtractions, or deductions than Schedule 763 ADJ allows. Check the box on Schedule 763 ADJ and refer to the instructions for the codes.
How does the schedule compare the low-income credit with the Virginia Earned Income Credit?
If you qualify for the Tax Credit for Low-Income Individuals, Line 13 multiplies the eligible exemption count on Line 12 by $300. Line 15 calculates 20% of the federal Earned Income Credit entered on Line 14. Line 16 uses the larger amount. Line 17 limits the credit to the lesser of Line 16 or Form 763, Line 18 reduced by any Credit Paid to Another State computed on Schedule OSC. Transfer Line 17 to Form 763, Line 23.
Where do I report additions to tax, penalties, and interest?
Enter them on Lines 18 through 20. Add those amounts on Line 21 and transfer the total to Form 763, Line 32.