You are required to file a Virginia tax return if you were a resident of Virginia in 1976 and you filed a federal return, or if your income exceeded the amounts shown in the table; or if you were a nonresident but filed a federal return and had taxable income from Virginia sources.

Like Maryland, Virginia does not require any supporting details for most of the figures carried over from the federal return. You therefore must report to the Virginia Department of Taxation within 90 days any change made to your federal return, either by the IRS or by a voluntary amendment.

If you report income from a business or profession or from the operation of a farm attach a copy of federal Schedule C or F to your Virginia return (including any supporting schedules such as depreciation).

Anyone who maintained his legal residence (domicile)in Virginia for any length of time during 1976 or who had his actual residence (place sof abode)in Virginia for more than 185 days during the year is subject to tax as a resident.

Exception: Any member of Congress who is domiciled in another state is not considered a resident of Virginia, but must report - as a nonresident - any income derived from Virginia sources.

Anyone else who had income from Virginia sources during 1976 may be taxed as a nonresident. Exception: You were not required to file a Virginia return if you were a nonresident for the entire year, your Virginia income came only from wages or salary, you commuted on a daily basis to your work from a residence in Kentucky, Maryland, West Virginia, or the District, and your income is subject to tax in your home state.

If you moved both your legal and actual residence out of the state or moved either your legal or actual residence into the state during 1976, you must file a part-year resident return (Form 760PY)for the period you lived in Virginia.

Short Form 760s may be used by any taxpayer, regardless of the amount of income, who meets all of the following tests:

You file a full-year resident return on a calender year basis;

Your total income is from wages or salry, interest, and dividends, and your only credit against Virginia tax liability is for tax withheld from earnings;

If you can be claimed as a dependent on another's return, you had no unearned income such as interest or dividends;

You are not required to modify your federal income for Virginia tax purposes;

You took the standard deduction on your federal return and will do the same in Virginia; and

You are filing a joint Virginia return if you filed a joint federal return.

Any resident taxpayer may elect to use the standard Form 760. Residents who do not meet all of the above tests must use Form 760. The following information applies to use of the standard Form 760.

Transfer the amount of federal adjusted gross income to line 5 of Form 760. Then in Part 1 on page 2 enter any additions, including interest income on obligations of state and local governments other than Virginia and certain carry-over credits taken on the federal return, as explained in the instruction booklet.

Next enter in Part ll the various items of income on your federal return which are exempt from Virginia tax:

Any state income tax refund.

Interest on U.S. obligations and on Virginia state and local obligations if included as income on your federal return.

Pensions (but not regular retirement pay)based on military service.

Exempt pension or retirement payments received by officers or employees (or their surviving spouses)of the Commonwealth of Virginia or of its subdivisions or agencies.

If you took the standard deduction on your federal return, you must take the standard deduction in Virginia. For a single taxpayer or a married couple filing jointly, the standard deduction is the greater of $1,300 or 15 per cent of adjusted gross income, up to a maximum of $2,000.

If you are married and filing combined separate returns, the numbers are the same but must be based on the combined total of your adjusted gross incomes. If you file separate returns, the standard deduction for each spouse is $650 or 15 per cent of adjusted grass income with a maximum deduction of $1,000.

You must itemize for Virginia it you itemized on your federal return. Enter the total of your deductions from federal Schedule A, then subtract any state or local income tax deduction included in the federal total.

If you are married, filed a joint federal return, and are filing combined separate returns in Virginia, you may allocate the deduction between husband aand wife as you please. If one spouse had considerably more income than the other, you often will save tax dollars by giving the entire deduction to the spouse with the larger income.

If your Virginia taxable income is under $12,000, you either may use the tax table or compute your tax from the tax rate schedule, both found on page 7 of the instruction booklet.IF your taxable income is $470 plus 5.75 per cent of the excess over $12,000.

The retirement income subtraction has been eliminated. In its place is a new tax credit for taxpayers aged 62 or older. You are eigible for this credit , whether or not you had "retirement" income, if you meet the following tests:

1 Adjusted gross income from your federal return, appearing on line 5 of Form 760, is less than $14,200;

Your Social Security or basic Railroad Retirement Act benefits did not benefits did not exceed: $3,427 if you were 62 by Dec. 31, 1976; $3,786 if you were 63 by that date; $4,078 for age 64; or $4,368 if you were 65 or older; and

3 You did not claim an exclusion for retirement pay from state employment.

Calculate the credit in part Vl of Form 760. It must be computed separately for each taxpayer; if you file a joint return, you must make the calculations individually for husband and wife. if both qualify, however, you may claim the combined credit against your joint tax.

You may be able to claim credit in Part V, for income tax paid to another state. If you are a Virginia resident, you may claim the credit only if the other state does not grant you credit (as a resident or nonresident)for Virginia tax paid on income earned in that state.

As a nonresident, you may claim credit against Virginia tax on Virginia income only if your home state allows similar credit to Virginia residents who are nonresident taxpayers of that state.

Beginning with the 1976 tax year, Virginia has instituted a system for requesting a 60-day extension of filing time similar to the federal "automatic" system.

You must file Virginia Form 760-E by May 1, 1977, on which you estimatye your tax liability for the year. If there is an estimated balance due, you must forward payment for the deficiency with the request for extension.

The final return is then due not later than June 30, 1977, (or, for fiscal year taxpayers, 15 days after the federal extension date).