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Virginia Administrative Code
Title 23. Taxation
Agency 10. Department of Taxation
Chapter 140. Income Tax Withholding
4/17/2024

23VAC10-140-110. Withholding exemption certificates.

A. Generally. An employee receiving wages shall be entitled to the number of exemptions for which such employee qualifies under the laws of the United States relating to federal income taxes. However, the Commissioner, upon written request, may permit additional allowances where the amount withheld according to the Virginia Income Tax Withholding Tables will result in a substantial overpayment of the employee's income tax. See 23VAC10-140-40.

B. On commencement of employment. At the time of commencing employment, every employee shall furnish his employer with a signed withholding exemption certificate relating to the withholding exemptions which the employee claims, which in no event shall exceed the sum of exemptions to which the employee is entitled. If an employee fails to furnish a certificate, an employer is required to withhold tax as if the employee had claimed no withholding exemptions.

C. When certificate takes effect.

1. First certificate furnished. Withholding exemption certificates shall take effect as of the beginning of the first payroll period ending, or the first payment of wages made without regard to a payroll period, on or after the date on which such certificate is so furnished, provided that certificates furnished before January 1, 1983 shall be considered as furnished on that date.

2. Furnished to take place of existing certificate. A withholding exemption certificate which takes effect under this chapter shall continue in effect with respect to the employer until another such certificate takes effect under this section. If a withholding exemption certificate is furnished to take the place of an existing certificate, the employer, at the employer's option, may continue the old certificate in force with respect to all wages paid on or before the first status determination date, January 1 or July 1, which occurs at least 30 days after the date on which such new certificate is furnished.

D. Change of status which affects next calendar year. If, on any day during the calendar year, the number of withholding exemptions to which the employee will be, or may reasonably be expected to be, entitled at the beginning of his next taxable year is less than the number of exemptions to which the employee is entitled on such day, the employee must, on or before December 1 of the year in which the change occurs, unless such change occurs in December, furnish the employer with a withholding exemption certificate reflecting the decrease in the number of the exemptions which the employee claims with respect to such next taxable year, which shall in no event exceed the sum of exemptions to which the employee will be, or may reasonably be expected to be, so entitled. If the change occurs in December, the new certificate must be furnished within 10 days after the change occurs. The number of withholding exemptions to which an employee is entitled decreases, for example, because of the death of a spouse or dependent of the employee. If, on any day during the calendar year, the number of withholding exemptions to which the employee will be, or may reasonably be expected to be, entitled at the beginning of his next taxable year is greater than the number of withholding exemptions claimed by the employee on a withholding exemption certificate in effect on such day, the employee may, on or before December 1 of the year in which such change occurs, unless such change occurs in December, furnish his employer with a new withholding exemption certificate reflecting the increase in the number of withholding exemptions. If the change occurs in December, the certificate may be furnished on or after the date of which the change occurs. Exemption certificates furnished pursuant to this subsection shall not take effect with respect to any payment of wages made in the calendar year in which the certificate is furnished.

E. Change of status which affects present calendar year. If, on any day during the calendar year, the number of withholding exemptions to which the employee is entitled is less than the number of withholding exemptions claimed by the employee on his withholding exemption certificate then in effect, the employee shall, within 10 days after the change occurs, furnish the employer with a new withholding exemption certificate relating to the withholding exemptions which the employee then claims, which shall in no event exceed the number of exemptions to which he is entitled on such day. The number of withholding exemptions to which an employee is entitled decreases, for example, for any of the following reasons:

1. The employee's spouse for whom the employee has been claiming a withholding exemption is divorced or legally separated, or claims his own exemption on a separate certificate.

2. The support of a dependent for whom the employee claimed an exemption is assumed by another so that the employee no longer expects to furnish more than half the support for the year.

3. Employee finds that a dependent for whom employee claimed an exemption no longer qualifies because he has gross income of more than $1,000.

If, on any day during the calendar year, the number of withholding exemptions to which the employee is entitled is greater than the number of withholding exemptions claimed, the employee may furnish the employer with a new withholding exemption certificate relating to the withholding exemptions which the employee then claims, which shall in no event exceed the number of exemptions to which he is entitled on such day.

F. Employee's certificate of exemption from withholding. An employee who has in effect the withholding exemption certificate set forth in 23VAC10-140-20 (the "certificate of exemption from withholding") must revoke such exemption within 10 days from the time he anticipates incurring income tax liability for the year. To revoke such exemption, the employee must furnish his employer a signed withholding exemption certificate as set forth in subsection B above. An employee's certificate of exemption from withholding shall expire on January 1 of the next year unless, before that date, the employee shall have filed with his employer a new certificate of exemption from withholding. An employee shall not file a certificate of exemption from withholding if his joint or separate return shows tax liability before the allowance of any credit for income tax withheld.

G. Form of certificate. Withholding exemption certificates shall be in such form and contain such information as the Commissioner may prescribe.

Statutory Authority

§§ 58.1-203 and 58.1-470 of the Code of Virginia.

Historical Notes

Derived from VR630-6-470, eff. January 1, 1985.

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