Tax Benefits and Credits for Immigrants in Virginia in 2025

Key Takeaways

• Virginia’s EITC rises to 20% of federal amount for 2025 tax returns filed in 2026.
• Standard deduction increased to $8,750 (single) and $17,500 (joint) starting 2025.
• Car tax credit proposed, firearm safety and low-income credits updated for immigrants.

Virginia has made several important changes to its tax benefits and credits for 2025, directly affecting immigrants who live and work in the state. These updates include a larger Earned Income Tax Credit (EITC), a higher standard deduction, and other state-level programs. Understanding these changes is important for immigrant families who want to make the most of the tax support available to them. Here’s a clear summary of what has changed, who is affected, when these changes take effect, what actions are needed, and what these updates mean for pending and future tax filings.

Summary of What Changed in 2025

• Virginia’s Earned Income Tax Credit (EITC) is now 20% of the federal EITC (up from 15%), starting with 2025 tax returns filed in 2026.
• The standard deduction has increased to $8,750 for single filers and $17,500 for married couples filing jointly.
• No separate state child tax credit exists in Virginia, but the larger EITC and higher standard deduction help families with children.
• A new car tax credit is proposed but not yet law as of July 2025.
• Other credits, such as the Credit for Low Income Individuals and the Firearm Safety Device Tax Credit, remain available with some updates.

Let’s break down each of these changes and what they mean for immigrants in Virginia.

Who Is Affected by These Changes?

These updates impact all Virginia residents who file state income tax returns, including immigrants. However, to benefit from the Virginia EITC and related credits, immigrants must:

• Be legal residents (such as green card holders or certain visa holders)
• Have a valid Social Security Number (SSN)
• Be authorized to work in the United States 🇺🇸
• Meet the federal EITC requirements
• File a Virginia state tax return

Undocumented immigrants, or those without a valid SSN, are not eligible for the federal or Virginia EITC. This rule also applies to the child tax credit at the federal level.

Effective Dates for the New Tax Benefits

• Virginia EITC at 20% of the federal amount: Applies to 2025 income tax returns, which are filed in 2026.
• Standard deduction increase: Also applies to 2025 returns.
• Firearm Safety Device Tax Credit expansion: Effective July 1, 2025.
• Car tax credit: Still a proposal as of July 2025; not yet available.

If you are preparing your 2025 taxes (to be filed in 2026), these changes will apply to you.

Detailed Look at the Virginia Earned Income Tax Credit (EITC) Expansion

The most important update for many immigrant families is the expansion of the Virginia EITC. Here’s what you need to know:

• The Virginia EITC is now 20% of the federal EITC. For example, if your federal EITC is $3,000, you will receive an extra $600 from Virginia.
• The credit is refundable. This means you can get money back even if you owe no state income tax.
• Over 536,000 households in Virginia are expected to benefit. This includes many immigrant families who meet the requirements.

Eligibility for Immigrants:

• You must qualify for the federal EITC. This means you need a valid SSN, must be authorized to work, and meet income limits.
• You must file a Virginia state tax return and claim the EITC on your return.
• The EITC is available to both single filers and married couples, with or without children, as long as you meet the income and other rules.

Federal EITC Income Limits for 2025:

• No qualifying child: $18,591 (single), $25,511 (married filing jointly)
• One qualifying child: $49,084 (single), $56,004 (married filing jointly)
• Two qualifying children: $55,768 (single), $62,688 (married filing jointly)
• Three or more qualifying children: $59,899 (single), $66,819 (married filing jointly)
• Investment income must be $11,600 or less.

If you are unsure whether you qualify, you can use the IRS EITC Qualification Assistant to check your eligibility.

Standard Deduction Increase

The standard deduction is the amount of income you can subtract from your total income before taxes are calculated. For 2025:

• Single filers: $8,750 (up from $8,500)
• Married filing jointly: $17,500 (up from $17,000)

This increase means you will pay tax on less of your income, which can lower your tax bill. All filers, including immigrants, benefit from this change.

Other State-Level Tax Credits and Benefits

Credit for Low Income Individuals:

• This is a non-refundable credit for low-income Virginians.
• You cannot claim both the Virginia EITC and this credit in the same year. You must choose the one that gives you the most benefit.

Firearm Safety Device Tax Credit:

• Expanded in July 2025 to cover devices bought from commercial retailers, not just federally licensed dealers.
• Available to all eligible Virginia residents, including immigrants.

Car Tax Credit (Proposed):

• Governor Glenn Youngkin has proposed a new, permanent, refundable income tax credit to help offset the local car tax for working-class families.
• As of July 2025, this is still a proposal and not yet law. If passed, it could provide more relief to immigrant families who own cars.

Child Tax Credit in Virginia

• Federal Child Tax Credit: Immigrants with valid SSNs and qualifying children can claim the federal child tax credit if they meet the income and relationship rules.
• Virginia Child Tax Credit: There is no separate state child tax credit in Virginia as of July 2025.
• However, the larger EITC and higher standard deduction help families with children by increasing refunds and lowering taxes.

Step-by-Step: How Immigrants Can Claim the Virginia EITC and Other Credits

1. Check if you qualify for the federal EITC. Use the IRS EITC Qualification Assistant to see if your income and family situation meet the rules.
2. File your federal tax return. Claim the federal EITC on your IRS Form 1040. You can find the latest version of IRS Form 1040 here.
3. File your Virginia state tax return. Use Virginia Form 760 to file your state taxes.
4. Complete the Virginia Earned Income Credit section. This is found on Schedule ADJ, which you attach to your Virginia return.
5. Choose your credit. You can only claim one of these per year: the refundable Virginia EITC, the non-refundable Virginia EITC, or the Credit for Low Income Individuals.
6. Include all required documents. Make sure you have SSNs for all family members and any other needed paperwork.

If you need more help, the Virginia Department of Taxation has guides and contact information.

Implications for Pending and Future Applications

• If you filed your 2024 taxes before July 2025: The new EITC and standard deduction do not apply. You will see these changes when you file your 2025 taxes in 2026.
• If you are preparing to file for 2025: Make sure to use the new deduction amounts and claim the larger EITC if you qualify.
• If you are waiting on the car tax credit: This is still under review. Keep an eye on official updates from the Virginia Department of Taxation.

Practical Impact on Immigrant Families

The expansion of the Virginia EITC and the higher standard deduction mean more money in the pockets of low- and moderate-income immigrant families. This extra support can help pay for basic needs like rent, groceries, and child care. According to analysis by VisaVerge.com, these changes are especially important for families with children, even though Virginia does not have a separate state child tax credit.

For example, a family of four with two children, both parents working and earning below the EITC income limit, could see a larger refund from both the federal and state EITC. The higher standard deduction also means they will pay less in state taxes.

Key Stakeholders and Their Views

• Governor Glenn Youngkin: Has made tax relief for working-class families a top priority, supporting the EITC expansion and proposing the car tax credit.
• Virginia Department of Taxation: Responsible for managing these credits and providing help to taxpayers.
• Advocacy Groups: Groups like The Commonwealth Institute have pushed for these changes, saying they help reduce poverty and support immigrant families.

Policy Background and How We Got Here

• The EITC expansion from 15% to 20% of the federal amount came after strong advocacy and action in the 2025 legislative session.
• The standard deduction increase is part of a larger effort to lower taxes for low- and moderate-income households.
• The car tax credit proposal is part of a plan to address what Governor Youngkin calls “the most hated tax in America,” with possible big benefits for working-class and immigrant families if it becomes law.

Looking Ahead: What’s Next?

• Car Tax Credit: Still under consideration. If passed, it will give more relief to families, including immigrants, who own vehicles.
• Advocacy Continues: Groups are still working to expand tax credits and deductions for low-income and immigrant households.

Common Questions from Immigrants in Virginia

• Can undocumented immigrants claim the EITC? No. Only those with valid SSNs and work authorization can claim the federal and Virginia EITC.
• Can I claim the Virginia EITC if I am a dependent? No. If you are claimed as a dependent on someone else’s return, you cannot claim the EITC.
• How do I know if I qualify? Use the IRS EITC Qualification Assistant and check with the Virginia Department of Taxation for state rules.

Summary Table: Key Virginia Tax Benefits for Immigrants (2025)

Actionable Next Steps for Immigrants in Virginia

• Check your eligibility for the federal and Virginia EITC using the IRS and Virginia Department of Taxation resources.
• Gather all required documents, including SSNs for yourself and your family members.
• File both your federal and Virginia tax returns for 2025, making sure to claim the EITC and use the new standard deduction amounts.
• Stay updated on the car tax credit proposal by following news from the Virginia Department of Taxation.
• Seek help if needed. Free tax help is available through many community organizations and the Virginia Department of Taxation.

For more details and the latest updates, visit the Virginia Department of Taxation official website.

Conclusion

The 2025 tax year brings important changes for immigrants in Virginia. The larger Earned Income Tax Credit, higher standard deduction, and other credits offer more support to families who need it most. While there is no separate state child tax credit, the expanded EITC and deduction help families with children. The proposed car tax credit could bring even more relief if it becomes law. Immigrants should review their eligibility, file their taxes on time, and use official resources to get the most out of these benefits. Staying informed and taking action can make a real difference in the financial well-being of immigrant families across Virginia.

Learn Today

Earned Income Tax Credit (EITC) → A refundable tax credit reducing taxes for low-income workers based on earned income and family size.
Standard Deduction → A set amount subtracted from gross income to lower taxable income on state or federal tax returns.
Social Security Number (SSN) → A unique nine-digit number issued to U.S. workers for tax and identification purposes.
Refundable Credit → A tax credit that can result in a refund even if no taxes are owed.
Virginia Form 760 → The official state income tax return form Virginia residents use to file their taxes.

This Article in a Nutshell

Virginia expanded tax benefits for immigrants in 2025, increasing EITC to 20% federal amount and raising standard deductions. These changes provide vital financial relief to eligible immigrant families, enhancing tax refunds and lowering bills. Proposed car tax credits could offer further support if enacted. Immigrants must meet legal requirements.
— By VisaVerge.com