Virginia Form 770 is the Virginia Fiduciary Income Tax Return, and the fiduciary of every resident or nonresident estate or trust that must file a federal Form 1041 has to file it with the Virginia Department of Taxation. If you are an executor, administrator, or trustee, this form reports the income the estate or trust earned and the Virginia tax it owes after income passes through to beneficiaries.
Getting it right matters because Virginia charges a late-filing penalty of 6% of the tax due per month, up to a hard cap of 30% of the tax, as spelled out in the 2025 Form 770 instructions. This guide uses the 2025 Form 770 (Rev. 09/25), with calendar-year returns due May 1, 2026, so check the revision date in the bottom corner of your form to make sure you have the current version.
Here is what you will learn:
- 📋 Who must file Form 770 and which estates and trusts are exempt
- 🧾 A line-by-line walkthrough of Schedule 1 through Schedule 5 with real entries
- 👨👩👧 Three full filled-out examples for common estate and trust situations
- 💸 The deadlines, fees, penalties, and estimated tax rules that trip filers up
- ⚠️ The mistakes that cause holds, rejections, and lost refunds
What Form 770 Is and Who Must File It
Form 770 is Virginia’s version of the federal fiduciary income tax return. The fiduciary, the person or institution legally in charge of an estate or trust, uses it to report income the estate or trust earned and to pay Virginia tax on the share that is not passed out to beneficiaries. The Virginia Department of Taxation receives the form, and Va. Code Title 58.1 authorizes the tax.
A resident estate or trust must file if it has to file a federal Form 1041. Under the instructions, a resident estate or trust means the estate of a decedent who was domiciled in Virginia at death, a trust created by the will of a decedent domiciled in Virginia at death, or a trust created by or made up of property of a person domiciled in Virginia.
A nonresident estate or trust must file if it had income or gain from Virginia sources and was required to file a federal Form 1041. Virginia-source income includes income from real or tangible property in Virginia, a business carried on in Virginia, or intangible property tied to a Virginia business.
Two special filers also use Form 770. A Charitable Remainder Trust files Form 770 and encloses the federal Split-Interest Trust Information Return (Form 5227), checking the “Exempt – Charitable Remainder Trust” box and entering zero on Line 3. Fiduciaries that file federal Form 990-T must file and pay Virginia tax on unrelated business income from Virginia sources.
You should also file even when you are not required to, if the estate or trust paid Virginia estimated tax or had Virginia tax withheld during the year. Filing is the only way to claim a refund of those amounts, and skipping it means the money stays with the state.
Before You Start: Documents and Information You Need
Gather everything before you open the form, because the Virginia return is built directly on top of your federal return. The instructions tell you to have a complete copy of the federal return on hand, and missing a single number can force you to refile.
Here is your pre-filing checklist:
- The completed federal Form 1041. Line 1 of Form 770 starts with federal taxable income, so without the finished 1041 you cannot begin.
- The estate or trust FEIN. Virginia matches the return to the federal account by this number, and a wrong FEIN sends the filing to the wrong record.
- All federal Schedule K-1s. These show each beneficiary’s share, which you need for the Schedule 5 allocation.
- Virginia withholding statements. You must enclose these to claim withholding on Line 5(a), and without them the credit is denied.
- Records of 2025 estimated tax payments. You need these to claim credit on Line 5(b), including any overpayment carried from 2024.
- The decedent’s date of death (for estates). This sets when estimated tax duties begin and confirms the residency status.
- Statements of interest, dividends, and U.S. obligation income. These feed the Schedule 3 additions and subtractions.
- Any other state’s fiduciary return. You must enclose it to claim the credit for tax paid to another state on Schedule 4.
- Credit certification letters. Credits like Land Preservation or Historic Rehabilitation require written approval before you can claim them.
- The correct Locality Code. This routes the return to the right city or county office, and a wrong code slows processing.
Set aside the federal Schedule K-1s in one stack and your Virginia payment records in another. This small step keeps the beneficiary allocation on Schedule 5 from turning into a guessing game later.
Where to Get the Form and How to Access It
You can download Form 770 and its instructions from the Virginia Tax forms page, or order paper copies by calling the Department at 804.367.8031. Most filers pull the PDF, but approved tax software and professional preparers also carry the form built in.
You have three practical ways to access and complete the return. The first is approved commercial tax software, which fills the form from your federal data and submits it electronically. The second is the fillable PDF from the Virginia Tax website, which you print and mail. The third is using Virginia’s eForms and Web Upload tools at tax.virginia.gov for payments tied to the return.
Assistance is free at the office of the Commissioner of the Revenue, Director of Finance, or Director of Tax Administration in every Virginia county and city. Bring a complete copy of the federal return when you visit, because staff cannot help with the Virginia numbers without it. Spanish-language service is available, and the Department’s main help line is 804.367.8031.
One nuance trips up new fiduciaries: the mailing address for forms and questions (P.O. Box 1115, Richmond, VA 23218-1115) is not where you file the return. You file the completed return with your local Commissioner of the Revenue, not the Richmond P.O. Box. Sending the return to the wrong address can delay processing past your deadline.
Step-by-Step: How to Fill Out Form 770 Line by Line
Work through the form in order: the top identity block, then Schedule 1 (tax computation), then the supporting schedules. Use all capital letters, enter dates as MM/DD/YYYY, and round every dollar figure to whole dollars since the form prints “.00” after each amount.
Top Section: Estate or Trust Identity and Status Boxes
This is the header at the top of Page 1 that identifies the estate or trust and its filing status. You complete the fiscal year line only if you do not use a calendar year; calendar-year filers leave the fiscal-year blanks empty.
Enter the Name of Estate or Trust, the Name and Title of Fiduciary, the FEIN of the Estate or Trust, and the fiduciary’s full mailing address. For example, Estate of Robert Hale, fiduciary Linda Hale, Executor, FEIN 85-1234567, address 742 Maple Street, Richmond, VA 23220.
A common edge case is the fiscal-year estate. If the estate runs, say, July 1 to June 30, you fill in the “From” and “To” dates and check the fiscal-year box; the return is then due the 15th day of the 4th month after the year closes, not May 1.
The most common mistake here is entering an SSN instead of the FEIN. An estate or trust uses its own federal employer identification number, and using the decedent’s Social Security number causes the Department to reject the match against federal records.
A frequent misconception is that the “address” should be the decedent’s home. It is the fiduciary’s address, because the Department mails all notices and any refund to the person managing the estate.
Locality Code
This box asks for the numeric code of the Virginia city or county where the fiduciary qualified or where the return is filed. The instructions provide the list of locality codes, and the code routes your return to the correct local office.
Enter the two-digit or three-digit code that matches your filing locality. For example, Linda Hale, filing in the City of Richmond, enters the Richmond locality code shown in the Form 770 instruction booklet.
If there has been no qualification in Virginia, you use the code for the county or city where the fiduciary resides, does business, or has an office, or where a beneficiary resides. This matters for nonresident fiduciaries who have no Virginia court qualification.
The common mistake is leaving this blank because it feels minor. A missing Locality Code can misroute the return to the wrong local Commissioner, which delays acceptance and can push you past the deadline.
People wrongly assume the Locality Code is the same as a ZIP code. It is a Virginia-specific jurisdiction code from the instruction booklet, not a postal code, and the two are unrelated.
Status Checkboxes: Resident, Nonresident, Final, Exempt, Grantor, Amended
These boxes near the FEIN tell the Department what kind of return you are filing. You check all that apply, and the choice changes how the rest of the form is read.
Check Resident or Nonresident based on the rules above, Final Return if this is the last return for the estate or trust, Exempt – Charitable Remainder Trust for a CRT, Grantor Trust where the grantor reports the income, and Amended Return with a reason code when you are correcting a prior filing. For example, Linda Hale closing the estate this year checks both Resident and Final Return.
There is also a checkbox stating that farming, fishing, or being a merchant seaman accounts for at least two-thirds of the income. Checking it lets you use the lower 66 2/3% estimated tax threshold on Form 760F.
The common mistake is forgetting the Final Return box on the last filing. Without it, the Department keeps the account open and may send notices expecting another return next year.
Filers often think a grantor trust owes no Virginia filing. Even a grantor trust may need to file Form 770 with the grantor-trust box checked so income flows correctly to the individual owner’s return.
Schedule 1, Line 1: Federal Taxable Income
This line asks for the federal taxable income of the estate or trust. For a resident, you copy the taxable income straight from the federal Form 1041; for a nonresident, you instead enter the amount from Schedule 2, Line 8.
Pull the figure from your completed federal return and write it in whole dollars. For example, the Estate of Robert Hale reports federal taxable income of 18,400, so Linda enters 18,400 on Line 1.
The edge case is the nonresident trust. A nonresident does not copy the federal number here; it must first complete Schedule 2 to isolate Virginia-source income, then carry Line 8 to Line 1.
The common mistake is entering federal adjusted gross income or total income instead of federal taxable income. Using the wrong line overstates the base and inflates the Virginia tax you owe.
A misconception is that distributed income still shows here. Income paid out to beneficiaries is already removed in the federal taxable income figure through the distribution deduction, so you do not subtract it again.
Schedule 1, Line 2: Fiduciary’s Share of Virginia Modifications
This line carries the net Virginia adjustment from Schedule 3, which fixes differences between federal and Virginia law. You enter a net addition on Line 2(a) or a net subtraction on Line 2(b), never both.
Complete Schedule 3 first, then bring its Line 11 result here. For example, if the Estate of Robert Hale earned 600 of interest on another state’s bonds and 400 of interest on U.S. Treasury bonds, the net addition is 200, so Linda enters 200 on Line 2(a).
There is a checkbox to flag that additions include the add-back of state and local income tax paid by a Pass-Through Entity (PTET). Check it and record the amounts on lines 2FA and 2FS when the trust received PTET income.
The common mistake is putting an addition on the subtraction line. Reversing 2(a) and 2(b) flips the sign of your taxable income and creates a math error the Department will correct, often with a notice.
Filers assume all interest is taxed the same. Interest on other states’ bonds is added back for Virginia, while interest on U.S. obligations is subtracted, so the two pull in opposite directions.
Schedule 1, Line 3: Virginia Taxable Income of Fiduciary
This line is the estate or trust’s Virginia taxable income, the base the tax is figured on. You take Line 1 plus Line 2(a), or Line 1 minus Line 2(b).
Do the arithmetic and enter the result. For the Estate of Robert Hale, Line 1 of 18,400 plus the 200 net addition gives 18,600 on Line 3.
A Charitable Remainder Trust is the edge case here: the instructions say to enter zero on Line 3 regardless of income, because the CRT itself is exempt.
The common mistake is applying the modification in the wrong direction. Adding when you should subtract changes the tax and triggers a recalculation by the Department.
People think this line should match the federal taxable income exactly. It rarely does, because Virginia modifications almost always shift the number up or down.
Schedule 1, Line 4: Tax on Virginia Taxable Income
This line is the actual Virginia income tax, figured with the tax rate schedule printed in the instructions. Virginia uses graduated rates topping out at 5.75% on income over $17,000.
Apply the rate schedule to Line 3 and enter the tax. For the Estate of Robert Hale with 18,600 of Virginia taxable income, the tax works out to about 1,011 using the bracket math in the instructions.
The edge case is a short tax year. A final estate return covering only part of a year still uses the same rate schedule; Virginia does not prorate the brackets.
The common mistake is guessing the tax instead of using the schedule. An estimated figure almost never matches the Department’s computation and produces a balance-due or refund adjustment.
Filers wrongly believe trusts get a personal exemption like individuals. Fiduciary returns do not get the individual personal exemption, so the full Line 3 amount is taxed.
Schedule 1, Line 5: Payments and Credits
This section totals everything already paid or credited toward the tax, across lines 5(a) through 5(n). It covers withholding, estimated payments, extension payments, the credit for tax paid to another state, and a list of named Virginia tax credits.
Fill in each line that applies, then add 5(a) through 5(n) for the total on Line 5. For example, Linda enters Virginia withholding of 250 on 5(a) and an estimated payment of 800 on 5(b), for a total of 1,050.
The edge case is a credit that needs pre-approval, such as the Land Preservation Tax Credit. You cannot claim it on lines like 5(k) until you have the Department’s certification letter in hand.
The common mistake is claiming withholding on 5(a) without enclosing the withholding statements. The instructions require the statements, and the Department disallows unsupported withholding.
A misconception is that the PTET credit on 5(n) can be passed down to beneficiaries. The instructions state the PTET credit allocated to an estate or trust cannot be re-allocated to beneficiaries.
Schedule 1, Lines 6 and 7: Tax Due or Overpayment
These two lines compare your tax to your payments. Line 6 is tax due when Line 4 is larger than Line 5; Line 7 is an overpayment when Line 5 is larger than Line 4.
Subtract the smaller from the larger and enter the result on the correct line. For the Estate of Robert Hale, tax of 1,011 minus payments of 1,050 leaves an overpayment of 39 on Line 7.
The edge case is a return that breaks even. If Line 4 equals Line 5, you enter zero on both lines and owe nothing.
The common mistake is filling in both Line 6 and Line 7. Only one can apply, and entering amounts on both creates a contradiction the Department must resolve.
Filers assume an overpayment is always refunded. It can instead be applied to next year’s estimated tax on Line 11, or withheld to cover other debts under the Setoff Debt Collection Act.
Schedule 1, Lines 8 through 14: Underpayment, Penalty, Interest, Balance Due or Refund
This block adjusts the bottom line for estimated tax underpayment (Line 8, from Form 760C or 760F), penalty (Line 9), interest (Line 10), and any overpayment credited forward (Line 11). Lines 12 through 14 produce your final balance due or refund.
Add lines 8 through 11 on Line 12, then follow the form’s directions to reach Line 13 (balance due) or Line 14 (refund). For example, with no underpayment or penalty, the Estate of Robert Hale carries its 39 overpayment straight to Line 14 as a refund.
The edge case is the underpayment addition to tax. If the trust owed more than the estimated tax threshold and underpaid, you complete Form 760C, enclose it, check the Line 8 box, and report the addition on Line 11.
The common mistake is leaving penalty and interest blank when filing late. The Department will compute and bill them anyway, and interest keeps running until you pay.
People think filing on extension stops penalty and interest. An extension only extends the time to file; you still must pay at least 90% of the tax by May 1 to avoid the extension penalty and interest.
Schedule 2: Virginia Taxable Income of a Nonresident Estate or Trust
This schedule, on Page 2, isolates the Virginia-source income for a nonresident estate or trust. Resident filers skip it entirely.
Report Virginia-source income in the distributable and nondistributable columns, subtract attributable federal deductions, then use the allocation grid to split income between beneficiaries and the fiduciary by percentage. The result on Line 8, income taxable to the fiduciary, carries to Schedule 1, Line 1. For example, the Coastal Holdings Trust, a Maryland trust with Virginia rental property, reports 30,000 of Virginia rent and allocates the fiduciary’s share to Line 8.
The edge case is a trust with both distributable and nondistributable Virginia income. You must track Column A and Column B separately, because only the fiduciary’s retained share is taxed on Form 770.
The common mistake is a resident trust filling out Schedule 2 by accident. Residents report worldwide income on Line 1 directly and must leave Schedule 2 blank.
Filers wrongly think nonresident trusts owe Virginia tax on all their income. Only the income from Virginia sources is taxed, which is exactly what this schedule isolates.
Schedule 3: Fiduciary’s Modifications
This schedule lists the additions and subtractions that convert federal taxable income to Virginia taxable income. Part I covers additions; Part II covers subtractions.
In Part I, add items like interest on other states’ obligations (Line 1) and state income taxes deducted federally (Line 2). In Part II, subtract income from U.S. obligations (Line 6) and any state tax refund reported as federal income (Line 7). Net the two on Line 11 and carry it to Schedule 1, Line 2. For example, the Estate of Robert Hale adds 600 of out-of-state bond interest and subtracts 400 of Treasury interest for a 200 net addition.
The edge case is a “Conformity Addition” or “Conformity Subtraction.” Because Virginia suspended rolling conformity for tax years 2025 and 2026, certain federal items must be adjusted on lines 3 and 8 with an enclosed explanation.
The common mistake is forgetting to subtract U.S. obligation interest. Treasury and federal bond interest is exempt from Virginia tax, and missing the subtraction overpays your tax.
A misconception is that you can skip the explanation for “Other” additions or subtractions. The form requires you to enclose an explanation, and the Department may disallow undocumented amounts.
Schedule 4: Credit for Tax Paid to Another State
This schedule computes the credit a resident estate or trust gets for income tax paid to another state on income also taxed by Virginia. It prevents the same income from being taxed twice.
Enter the income taxed by the other state, your Virginia taxable income, and the tax paid to the other state, then compute the allowable percentage to one decimal place. The smaller of the limits goes to Schedule 1, Line 5(d). For example, the Estate of Robert Hale paid 300 to North Carolina on out-of-state business income and claims the allowable credit here.
The edge case involves Arizona, California, the District of Columbia, and Oregon. A Virginia resident fiduciary may not claim the Virginia credit for taxes paid to those four states; the credit must be claimed on that state’s return instead.
The common mistake is not enclosing the other state’s return. The instructions require a complete copy, and canceled checks alone are not accepted as proof.
Filers think taxes paid to a city or foreign country count. Only state income taxes qualify; local, federal, and foreign taxes do not earn this credit.
Schedule 5: Beneficiary’s Information (Federal Schedule K-1 Equivalent)
This schedule on Page 3 is Virginia’s K-1 equivalent, prepared for each beneficiary who received income. It reports the beneficiary’s distribution percentage, their share of Virginia modifications, and any credits allocated to them.
Enter the beneficiary’s name, SSN or FEIN, and address, then the federal distribution percentage to six decimal places, the modifications, and credit allocations. A copy goes to the Department and a copy to the beneficiary. For example, the Hale Family Trust gives daughter Karen Hale a 50.000000% distribution share on Line 1b.
The edge case is a nonresident beneficiary. You must also complete the nonresident section (Line 6) showing Virginia-source income, because that beneficiary may owe Virginia tax even while living elsewhere.
The common mistake is rounding the distribution percentage to a whole number. The form demands six decimal places, and rounding throws off each beneficiary’s allocated income.
A misconception is that you can hand beneficiaries the federal K-1 and let them figure their own Virginia modifications. The instructions say this is not acceptable; the fiduciary must compute and report the modifications on Schedule 5.
Signature Block
The signature block, at the bottom of Page 2, is where the fiduciary swears the return is true under penalty of law. An unsigned return is treated as not filed.
Sign as the fiduciary or authorized officer, date it, and add a daytime phone number; a paid preparer signs the preparer section. For example, Linda Hale signs, dates it 04/15/2026, and lists her phone number.
The edge case is co-fiduciaries. When two or more people serve jointly, any one of them may sign, so all signatures are not required.
The common mistake is mailing an unsigned return. The Department cannot process it and will return it, which can push you past the May 1 deadline and trigger penalties.
People assume the preparer’s signature covers the fiduciary. It does not; the fiduciary must personally sign, because the fiduciary is legally responsible for the return.
Three Filled-Out Examples Using Real Scenarios
These three scenarios show how different estates and trusts move through Form 770 from top to bottom.
Example 1: Linda Hale, Resident Estate with Simple Investment Income
Linda is the executor of her father’s estate. The estate is a Virginia resident, earned interest and dividends, and is closing this year.
| Form Section | What Linda Enters |
|---|---|
| Name of Estate or Trust | Estate of Robert Hale |
| FEIN | 85-1234567 |
| Status boxes | Resident and Final Return checked |
| Locality Code | Richmond city code from instructions |
| Schedule 1, Line 1 | 18,400 federal taxable income |
| Schedule 3 net modification | 200 net addition (out-of-state bond interest less Treasury interest) |
| Schedule 1, Line 3 | 18,600 Virginia taxable income |
| Schedule 1, Line 4 | 1,011 tax |
| Schedule 1, Line 5 | 1,050 payments (withholding plus estimated) |
| Schedule 1, Line 14 | 39 refund |
Example 2: Hale Family Trust, Resident Trust Distributing Income to Beneficiaries
The trustee of a resident trust paid out income to two adult children during the year. The trust keeps a small share and distributes the rest, so Schedule 5 is the heart of this return.
| Form Section | What the Trustee Enters |
|---|---|
| Name of Estate or Trust | Hale Family Trust |
| Status boxes | Resident checked |
| Schedule 1, Line 1 | 6,000 federal taxable income (after distribution deduction) |
| Schedule 3 net modification | 0 (no Virginia differences) |
| Schedule 1, Line 3 | 6,000 Virginia taxable income |
| Schedule 1, Line 4 | 225 tax |
| Schedule 5, beneficiary Karen Hale | 50.000000% federal distribution percentage |
| Schedule 5, beneficiary Mark Hale | 50.000000% federal distribution percentage |
| Schedule 1, Line 5(b) | 250 estimated tax paid |
| Schedule 1, Line 14 | 25 refund |
Example 3: Coastal Holdings Trust, Nonresident Trust with Virginia-Source Income
The trustee manages a Maryland trust that owns a rental house in Virginia Beach. Only the Virginia rental income is taxed, so Schedule 2 drives the return.
| Form Section | What the Trustee Enters |
|---|---|
| Name of Estate or Trust | Coastal Holdings Trust |
| Status boxes | Nonresident checked |
| Schedule 2, Line 1 | 30,000 Virginia rental income |
| Schedule 2, Line 3 | 24,000 net Virginia source income after deductions |
| Schedule 2, Line 8 | 9,000 income taxable to fiduciary |
| Schedule 1, Line 1 | 9,000 (from Schedule 2, Line 8) |
| Schedule 1, Line 3 | 9,000 Virginia taxable income |
| Schedule 1, Line 4 | 407 tax |
| Schedule 1, Line 5(b) | 400 estimated tax paid |
| Schedule 1, Line 13 | 7 balance due |
How to File the Completed Form
You can file Form 770 electronically or on paper, and both original and amended returns are accepted online. The channel you pick changes how you pay and what proof you keep.
Electronic filing is done through approved tax software or a paid preparer, with payment pulled from a checking or savings account at no fee charged by the Department. This is the fastest channel, and the software gives you an electronic acceptance confirmation to keep as proof.
Paper filing goes to the Commissioner of the Revenue, Director of Finance, or Director of Tax Administration for the city or county where the fiduciary qualified, not to a Richmond P.O. Box. If filing on paper, you must enclose full payment by check made payable to the Treasurer of that city or county; the local office addresses are listed at the back of the instructions.
Online payments for an extension or balance use Virginia’s eForms and Web Upload, including Form 770IP for extension payments and Form 770ES for estimated tax. Funds transfer from your bank account with no Department fee, and the system gives a confirmation number.
Keep your proof. Virginia Tax does not acknowledge receipt of paper returns or payments, so if you mail the return, use USPS tracking to confirm delivery. Hold all records for at least three years from the due date or the date filed, whichever is later.
What Happens After You File
After you file, the Department processes the return and matches it against your federal data and any prior payments. The timeline depends on the channel, with electronic returns moving faster than paper.
If you are owed a refund, the Department first checks for debts under the Setoff Debt Collection Act. If the estate or trust owes money to a Virginia agency, a local government, the court system, or the IRS, all or part of the refund can be applied to that debt before any check is issued.
If you owe and did not pay enough, the Department bills the balance plus penalty and interest. The late-payment penalty runs at 6% of the unpaid tax per month up to 30%, and interest accrues daily at the federal underpayment rate plus 2% under Va. Code § 58.1-15.
If you later discover an error, or your federal return changes, you must file an amended Form 770 within one year of the final determination date. You check the Amended box, enter the reason code, and enclose a copy of the amended federal return.
Mistakes to Avoid When Filling Out the Form
- Using the decedent’s SSN instead of the estate’s FEIN. The return fails to match federal records and processing stalls.
- Entering federal AGI instead of federal taxable income on Line 1. The tax base is overstated and you overpay.
- Filling in both Line 6 and Line 7. Only one applies, and both create a contradiction the Department must fix.
- Forgetting the U.S. obligation subtraction on Schedule 3. Treasury interest is exempt, so missing it overpays Virginia tax.
- Rounding the Schedule 5 distribution percentage. The form requires six decimals, and rounding misallocates beneficiary income.
- Leaving the Locality Code blank. The return misroutes to the wrong local office and acceptance is delayed.
- Not enclosing withholding statements for Line 5(a). Unsupported withholding is disallowed.
- Skipping the Final Return box on a closing estate. The account stays open and the Department expects another return.
- Claiming a credit before getting the certification letter. Pre-approval credits are denied without the written approval.
- Mailing the return to the Richmond P.O. Box. That address is for questions only; the return goes to the local Commissioner.
- Filing without a signature. An unsigned return is treated as not filed and may blow your deadline.
- Assuming an extension delays payment. It only delays filing; 90% of the tax is still due May 1.
Do’s and Don’ts
Do:
- Finish the federal Form 1041 first, because every Virginia number flows from it.
- Enter dollar amounts in whole dollars, since the form is built for “.00” entries.
- Check every status box that applies, so the Department reads the return correctly.
- Compute Schedule 5 modifications for each beneficiary, because the law makes that the fiduciary’s job.
- Pay at least 90% of the tax by May 1, even if you file on extension, to avoid the extension penalty.
- Use USPS tracking on paper returns, since the Department does not acknowledge receipt.
Don’t:
- Don’t enter the fiduciary’s SSN in the FEIN box, or the return will not match.
- Don’t reverse the addition and subtraction lines on Schedule 1, which flips your taxable income.
- Don’t guess the tax instead of using the rate schedule, which causes adjustments.
- Don’t mail the return to P.O. Box 1115, which is for forms and questions only.
- Don’t claim withholding without enclosing the statements, or it gets disallowed.
- Don’t forget the Final Return box on a closing estate, which leaves the account open.
Pros and Cons of Filing on Your Own vs. With a Tax Professional
| Filing on Your Own | Filing With a Tax Professional |
|---|---|
| Pro: No preparer fee, so more of the estate stays with beneficiaries. | Pro: A pro handles tricky Schedule 2 and Schedule 5 allocations correctly. |
| Pro: You control the timing and see every number yourself. | Pro: Preparers e-file and give you an acceptance confirmation. |
| Pro: Simple resident estates with only interest income are manageable alone. | Pro: A pro catches Virginia-specific modifications you might miss. |
| Pro: You build direct knowledge of the estate’s tax picture. | Pro: Professional review lowers the odds of penalties and notices. |
| Pro: Free help is available at the local Commissioner’s office. | Pro: A pro manages amended returns and federal-change reporting deadlines. |
| Con: It is easy to miss the U.S. obligation subtraction or a credit. | Con: Preparer fees reduce the estate’s net assets. |
| Con: Nonresident and multi-beneficiary returns get complex fast. | Con: You depend on the preparer’s schedule near the May 1 deadline. |
| Con: A wrong Locality Code or missing signature can blow the deadline. | Con: You still must gather every document and supply accurate data. |
FAQs
Who signs Form 770 if there are two co-executors?
Yes, either co-executor can sign alone. When two or more people serve jointly as fiduciaries, the instructions allow any one of them to sign the return.
Do I write the decedent’s SSN or the estate’s FEIN in the FEIN box?
No, you do not use the SSN. The estate or trust has its own federal employer identification number, and you must enter that FEIN, not the decedent’s Social Security number.
Is interest from U.S. Treasury bonds taxed by Virginia on Form 770?
No, it is not taxed. You subtract income from U.S. obligations on Schedule 3, Part II, Line 6, so it is removed from Virginia taxable income.
Do I enter federal taxable income or adjusted gross income on Schedule 1, Line 1?
Yes, you enter federal taxable income. A nonresident instead enters the amount from Schedule 2, Line 8, after isolating Virginia-source income.
Must I round the Schedule 5 distribution percentage?
No, do not round it. The form requires the beneficiary’s federal distribution percentage to six decimal places, such as 33.333333%.
Is Form 770 due on April 15 like the federal return?
No, the Virginia due date is May 1. Calendar-year filers must file by May 1, 2026, and fiscal-year filers by the 15th day of the 4th month after year-end.
Do trusts have to make Virginia estimated tax payments?
Yes, if liability will exceed the threshold. For 2025 the threshold is $150, and for tax years beginning in 2026 and later it rises to $1,000.
Can I get an extension to file Form 770?
Yes, you get an automatic 6-month extension. You must still pay at least 90% of the tax by the original May 1 due date to avoid the extension penalty.
Do I have to file if the estate only had Virginia tax withheld?
Yes, you should file to claim it back. An estate or trust not otherwise required to file must file to get a refund of withholding or estimated payments.
Can the PTET credit on Line 5(n) pass through to beneficiaries?
No, it cannot. The instructions state a PTET credit allocated to an estate or trust cannot then be allocated to the beneficiaries.
Does a Charitable Remainder Trust pay Virginia tax on Form 770?
No, it enters zero on Line 3. The CRT checks the exempt box, enters zero taxable income, and encloses the federal Form 5227.
Can a resident fiduciary claim a credit for tax paid to California?
No, not on the Virginia return. For Arizona, California, the District of Columbia, and Oregon, the credit must be claimed on that state’s return instead.
Where do I mail a paper Form 770?
No, not to the Richmond P.O. Box. You file paper returns with the local Commissioner of the Revenue, Director of Finance, or Director of Tax Administration for your city or county.
What happens if I file the return late?
Yes, penalties apply. The late-filing penalty is 6% of the tax due per month up to 30%, plus daily interest at the federal underpayment rate plus 2%.
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