Fiduciary Income Tax
The fiduciary of a resident estate or trust must file a return: (1) if the estate or trust is required to file a federal fiduciary income tax return or (2) if it had any Virginia taxable income for the taxable year. "Resident estate or trust" means the estate of a Virginia resident decedent, a trust created under the will of a Virginia resident, or an estate or trust administered by a Virginia resident or under the supervision of a Virginia court. The fiduciary of a nonresident estate or trust receiving income from Virginia sources must also file a return.
A fiduciary return, Form 770, must be filed after the close of a calendar year, but not later than May 1, with the Commissioner of the Revenue, Director of Finance, or Director of Tax Administration for the Virginia city or county where the fiduciary qualified. If there has been no qualification in Virginia, the return should be filed with the official in the city or county where the fiduciary resides, does business or has an office, or where one or more of the beneficiaries reside.
Fiduciaries filing on a basis other than a calendar year must file their returns by the 15th day of the fourth month after the close of their taxable year. A copy of the federal fiduciary income tax return, Form 1041, as filed with the Internal Revenue Service, must be attached to the Virginia return.
Form 770 can also be electronically filed using the Fiduciary e-File option. Virginia accepts original and amended 770 e-Filed returns beginning with Tax Year 2016.
An automatic six-month filing extension is allowed for fiduciary income tax filers, provided the return is filed within six months from the original due date of the return. At least 90 percent of the fiduciary's income tax must be paid by the original due date, or the fiduciary may be subject to an extension penalty of 2 percent per month on the balance of tax due with the return. Fiduciary filers' underpayments are also subject to interest on any balance of tax due with a return filed on extension.
Form 770IP, Automatic Fiduciary and Unified Nonresident Extension Payment, is a payment coupon and worksheet that provides taxpayers who are unable to file their Fiduciary Income Tax return by May 1 a means of calculating and remitting a payment to avoid penalty and interest.
Who Must File Form 770IP
Form 770IP is required if both of the following apply:
- The Fiduciary Income Tax return cannot be filed by the due date; and
- There will be tax owed, as determined on the completed Tax Payment Worksheet
Form 770IP should not be filed if no tax will be owed, or if an extension payment is made electronically, using VATAX Online for Individuals.
For additional information, see Form 770IP Instructions.
An estate or trust must make installment payments of estimated income tax if its Virginia income tax can reasonably be expected to be $150 or more for the taxable year. In the case of an estate only, payment of estimated income tax is not required unless the last day of the taxable year is more than two years after the date of the decedent's death.
Beginning January 15, 2015, Fiduciaries, Estates and Trusts, and Unified Nonresident Filers may now make the following payments electronically using Web Upload:
- 770ES - Estimated Income Tax Payment Vouchers for Estates, Trusts and Unified Nonresidents
- 770IP - Virginia Fiduciary and Unified Nonresident Automatic Extension Payment Voucher
- 770PMT - Fiduciary Income Tax Return Payment