After amending a Virginia individual tax return (Form 760 or 763) that originally had a balance due, the return may show a lower balance due and correspondingly the Worksheet for Amended Returns that prints with the return will show the difference as a refund.
If the original Virginia tax return included bank information for payment of its balance due, the question is can the amended return be filed with that same bank information to be used instead for a direct deposit? The answer is that this can't be done. The Virginia e-file process does not provide a way to indicate to the state what to do with the refund (or balance due, as the case may be) as shown on the amended return worksheet, and in such a scenario the preparer will be rightly concerned that the state might process a second direct debit in error.
How should the return be filed to avoid a second direct debit?
In this scenario, before e-filing the amended Virginia tax return change its e-file method to remove the bank information. From the Virginia Resident (or Nonresident) Tax Return Menu select:
- Electronic Information Menu
- Type of VA Electronic Return - Change from "Direct Debit" to "Electronic Balance Due".
Doing the above will eliminate the state's ability to process a second direct debit in error.