Estimated Tax and Extension Payments
Individual Estimated Tax Payments
- Filing Requirement
- How to Estimate
- How to File
- Farmers, Fishermen and Merchant Seamen
- Changes in Income or Exemptions
- Underpayment of Estimated Tax
- Joint Estimated Tax Payments
If you are required to file a tax return and your Virginia income tax liability, after subtracting income tax withheld and any allowable credits, is expected to be more than $150, then you must make estimated tax payments or have additional income tax withheld throughout the year from your wages or other income.
You may not be required to file a Virginia income tax return or make estimated tax payments depending on your filing status and estimated annual income. Review Who Must File to see the income-threshold requirements.
How to Estimate
You must pay at least 90 percent of your tax liability during the year by having income tax withheld and/or making timely payments of estimated tax. An Estimated Payment Worksheet is available online to help you determine your estimated tax liability and how many payments you should make. Log in and select "Make an Estimated Payment".
To compute your estimated tax liability, see the instructions for form 760, 760PY or 763.
If your estimated Tax Liability is greater than $150 you are required to make estimated tax payments. Use the payment table below to determine the number and amount of each installment payment.
The number and amount of estimated income tax payments you may need to make are based on when during the tax year you became liable for paying your state income tax directly to the Department of Taxation. For example:
- If you are self-employed you could be responsible for making estimated tax payments throughout the entire tax year and you would make 4 tax payments in equal installments on or before May 1, June 15, September 15 and January 15; or
- If your employer was withholding taxes from your paycheck from January through June and then your circumstances changed such that no taxes were being withheld then you would be responsible for making estimated tax payments yourself for the remainder of the tax year. In this example you would make 2 estimated tax payments on September 15 and January 15.
Use the voucher number which corresponds to the period you became subject to the tax. For example, you receive a large bonus on November 1. The full estimated tax on that bonus is due on January 15 and should be filed using Voucher 4, even though it is your first payment.
|Date you expect to become
responsible for making
estimated tax payments:
|The Following Percentage of your Estimated Tax Liability to be paid:|
Due May 1
Due June 15
Due September 15
Due January 15
|January 1 - April 15||4||25%||25%||25%||25%|
|April 16 - June 1||3||33%||33%||33%|
|June 2 - September 1||2||50%||50%|
|September 2 - December31||1||100%|
If you are required to file estimated payments and the due date falls on a Saturday, Sunday or legal holiday, you may file your estimated payment on the next business day.
For Fiscal Year taxpayers substitute the 15th day of the 4th month for May 1, the 15th day of the 6th month for June 15, the 15th day of the 9th month for September 15 and the 15th day of the first month of the succeeding taxable year for January 15. Please indicate the beginning month of your fiscal year on 760ES voucher.
How to File
The fastest and easiest way to make your payments is to file and pay your estimated payments online with VATAX Online Services for Individuals or with eForms. You may also view your payment history at VATAX Online Services for Individuals.
Or may mail your 760ES Payment Vouchers directly to the:Virginia Department of Taxation
P.O. Box 1478
Richmond, VA 23218
Or mail your estimated tax payments to your local Virginia City or County.
Farmers, Fishermen and Merchant Seamen
Farmers, fishermen and merchant seamen who receive two-thirds of their estimated Virginia gross income from self-employed farming or fishing have special filing requirements, which allow them to make fewer payments. If you meet the qualifications of a farmer, fisherman or merchant seaman, you only need to file an estimated payment (Voucher 4) by January 15. If you file your income tax return on or before March 1 and pay the entire tax at that time, you are not required to file estimated tax payments for that tax year.
Changes in Income or Exemptions
If your expected Virginia adjusted gross income changes during the year, re-compute your estimated tax to determine how much your remaining payments should increase or decrease.
A change in income, deductions or exemptions may require you to file an estimated payment later in the year. If you file your state income tax return and pay the balance of tax due in full by March 1, you are not required to make the estimated tax payment that would normally be due on January 15.
If you file your return after March 1 without making the January payment, or if you have not paid the proper amount of estimated tax on any earlier due date, you may be liable for an additional charge for underpayment of estimated tax.
Underpayment of Estimated Income Tax
An addition to tax is imposed by law if at least 90 percent (66 2/3 percent if you are a farmer, fisherman, or merchant seaman) of your total tax liability is not paid throughout the year by timely withholding and/or installments of estimated tax except in certain situations. The addition to tax does not apply if each required installment is paid on time and meets one of the following exceptions:
- Is at least 90 percent (66 2/3 percent for farmers, fishermen or merchant seamen) of amount due based on annualized income
- Is at least 90 percent (66 2/3 percent for farmers, fishermen or merchant seamen) of amount due based on the actual taxable income;
- Is based on a tax computed by using your income for the preceding taxable year and the current year's tax rates and exemptions;
- Is equal to or exceeds the prior year's tax liability for each installment period and the prior year return was for a full year and reflected an income tax liability; or
- The sum of all installment underpayments for the taxable year is $150 or less
If you qualify for an exception, your underpayment computation will be based on 90 percent of the current year's income tax liability or 100 percent of your liability for the preceding year, whichever is less. The addition to tax is computed on Form 760C (or Form 760F for farmers, fishermen and merchant seamen).
Joint Estimated Tax Payments
A husband and wife may file a joint Form 760ES unless:
- They are legally separated or divorced
- They have different taxable years or
- One is a nonresident of this state (unless both are required to file a Virginia return)
If you file a joint Form 760ES, but do not file a joint income tax return, the estimated tax may be treated as the estimated tax of either husband or wife, or may be divided between both spouses as mutually agreed. Attach a statement to the front of each spouse's tax return that specifies the amount claimed by each spouse.
If you've run out of time, and can't complete your return by the due date, an automatic six-month filing extension is allowed for individual and fiduciary income tax filers. No paper application or online application for extension is required. The extension provisions do not apply to payment of any tax that may be due with the return. To avoid penalties, filers must pay at least 90 percent of their final tax liability by the original due date for filing the return. Individuals submit the payment on Form 760IP; fiduciaries should use Form 770IP.