Want a special one-time tax refund? Make sure to file your state returns by July 1

Nearly 350,000 Virginia taxpayers who are eligible for a one-time tax return this year need to file their returns by July 1 to qualify for the payment.

Individuals will receive $110 while married couples will get $220, but only if they file by July 1.

The one-time payment, which is separate from regular tax refunds, was designed to compensate taxpayers who might pay more in state taxes after the 2017 Tax Cuts and Jobs Act implemented changes to the federal tax code.

Virginia Secretary of Finance Aubrey Layne said on Monday that the 348,000 taxpayers who typically seek an extension to file their returns won’t be eligible for the special refund if they wait until after July 1, the beginning of the new fiscal year.

Layne expects 2.7 million refund checks to be issued in total, starting in September.

According to the Richmond Times-Dispatch, most taxpayers will receive the special refund, except those whose tax liability is met with state tax credits.

There is one more caveat, too: Taxpayers who owe outstanding debts to the state or local governments, state courts or the IRS will see their refund applied to those debts.

Taxpayers could also face delays if their returns get flagged for potential fraud or require additional documentation.