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INSTRUCTIONS FOR COMPLETING
FORM 770
VIRGINIA FIDUCIARY INCOME TAX
RETURNS FOR 2022
COMMONWEALTH OF VIRGINIA
DEPARTMENT OF TAXATION
RICHMOND, VIRGINIA
Va. Dept. of Taxation 2601091 Rev. 08/22
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I. WHAT’S NEW
Virginia’s Fixed Date Conformity with the Internal a’s Fixed Date Conformity with the Internal mentioned above. However, if legislation is enacted that
Revenue CodeRevenue Code results in changes to the IRC for the 2022 taxable year,
taxpayers may need to make adjustments to their Virginia
Virginia’sVdate of conformity with the Internal Revenue Code irginia’s date of conformity with the Internal Revenue Code
returns that are not described in these instructions.
(IRC)(IRC) was advanced from was advanced from December 31, 2020 to December
Information about any such adjustments will be posted on
31, 2021, subject to certain exceptionsbject to certain exceptions. This legislation
the Department’s website at www.tax.virginia.gov.
also allows Virginia to generally conform to the American
Rescue Plan Act of 2021 (ARPA) and provides additional Credit Changes for 2022 Taxable Year
benefits to recipients of certain coronavirus disease 2019
(COVID-19) business assistance programs during Taxable Legislation enacted by the 2022 General Assembly resulted
Years 2021 and 2019. in changes to the following credits:
In addition, Virginia will continue to deconform from the • Major Business Facility Job Tax Credit
following temporary changes made by the Coronavirus Aid, • Pass-Through Entity Elective Tax Payment Credit
Relief, and Economic Security (“CARES”) Act: suspension (new credit)
of certain NOL limitations for Taxable Years 2018, 2019,
• Worker Training Tax Credit
and 2020 and increasing the business interest limitation
for Taxable Year 2019 and 2020. See Tax Bulletin 21-4 for • Virginia Housing Opportunity Tax Credit
more information.
See the Tax Credits section of these instructions for details
At the time these instructions were published, the only on these credits. Additional information is also available on
required fixed date conformity adjustments were those the Department's website, www.tax.virginia.gov.
II. GENERAL INFORMATION
WHO MUST FILE A RETURN SPECIAL INSTRUCTIONS: Check the box for “Exempt
- Charitable Remainder Trust” under the FEIN area. On
RESIDENT ESTATE OR TRUST: The fiduciary of a resident
Line 3, enter zero for the amount of Virginia taxable income.
estate or trust must file a Virginia Fiduciary Income Tax Return
Enclose the federal Schedule K-1 and a worksheet reporting
(Form 770) if the estate or trust is required to file a federal
the Virginia income received by recipients.
Fiduciary Income Tax Return (Form 1041). “Resident estate
or trust” means: WHO SHOULD FILE A RETURN
• The estate of a decedent who at death was domiciled An estate or trust that is not otherwise required to file, but
in Virginia; which made payments of estimated tax or had income tax
withheld during the taxable year, must file a Virginia Fiduciary
• A trust created by the will of a decedent who at death Income Tax Return to claim a refund of those amounts.
was domiciled in Virginia; or
• A trust created by, or consisting of property of, a person PERIOD OF RETURN AND ACCOUNTING
domiciled in Virginia. METHOD
The accounting period and method of accounting for Virginia
NONRESIDENT ESTATE OR TRUST: The fiduciary of a
pur poses must be the same as the one used for federal
nonres ident estate or trust must file a Virginia Fiduciary
purposes. If the taxable year or method of accounting is
Income Tax Return (Form 770) if the estate or trust had
changed for federal purposes, the change must be applied
income or gain derived from Virginia sources and was
to the Virginia return.
required to file a federal Fiduciary Income Tax Return (Form
1041). “Income or gain from Virginia sources” means items SIGNATURE AND VERIFICATION
of income or gain derived from: The return must be signed by the fiduciary or an authorized
• Real or tangible personal property located in Virginia; officer of the organization receiving or having custody or
control of the manage ment of the estate or trust. If two or
• A business, trade, profession or occupation carried on in
more individuals act jointly as fiduciaries, the return may be
Virginia; or
signed by any one of those individuals.
• Intangible personal property, including annuities,
dividends, interest, royalties and gains to the extent PENALTIES AND INTEREST
that the income is attributable to a business, trade or PENALTIES: A fiduciary who fails to file or files a fraud ulent
occupation carried on in Virginia. return may be subject to civil and/or criminal penalties and
interest charges.
CHARITABLE REMAINDER TRUST: The fiduciary of a
Charitable Remainder Trust must file a Virginia Fiduciary The civil penalty for failing to file a return by the due date is
Income Tax Return (Form 770) and enclose a copy of the 6% of the tax due for each month or part of a month from
federal Split-Interest Trust Information Return (Form 5227). the due date through the date the return is filed, up to a
maximum of 30%.
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The civil penalty for failure to pay the tax due by the required Administration of every Virginia county and city. Addresses
due date is also 6% of the tax due for each month or part of and telephone numbers for these offices are available at the
a month from the due date through the date the tax is paid, back of these instructions. Since the Virginia return is based
up to a maximum of 30%. The late payment penalty is not on federal information, you should have a complete copy of
imposed for any month in which the late filing penalty has the federal Form 1041 on hand when you contact any of the
already been applied. The total combined penalties for late above offices. You can download most Virginia tax forms from
filing and late payment may not exceed 30% of the tax due the Department’s website: www.tax.virginia.gov. You may
with the return. order forms from the Department of Taxation at 804.367.8031.
The civil penalty for filing a false or fraudulent return, or failing Address requests for information to Virginia Department
or refusing to file any return with the intent to evade the tax, of Taxation, P.O. Box 1115, Richmond, VA 23218‑1115 or
is an additional penalty of 100% of the correct amount of call 804.367.8031. Do NOT file the return at this address.
tax due. Tenemos servicios disponible en Español.
INTEREST: Interest due on any tax and/or penalty will WHERE TO FILE
accrue at the daily rate established according to Va. Code Both original and amended returns are accepted electronically.
§ 58.1-15, from the date the tax or unpaid balance became If you are unable to file and pay electronically, Form 770 must
due through the date that payment is made. The daily interest be filed with the Commissioner of the Revenue, Director
rate is the federal “underpayment rate,” plus 2%. The current of Finance or Director of Tax Administration for the city or
interest factor may be obtained by calling the Department at county in which the fiduciary qualified. If there has been no
804.367.8031 or going to the Department’s website at www. qualification in Virginia, the return should be filed with the
tax.virginia.gov. Virginia city or county in which the fiduciary resides, does
business, or has an office, or where one of the beneficiaries
ALLOCATION OF INCOME TO BENEFICIARIES
resides. The mail ing addresses for the local offices are
Va. Code §§ 58.1-361 and 58.1-363 require the allocation available at the back of these instructions.
of Virginia modifications and Virginia taxable income
to beneficiaries based on their respective share of the Use the Department’s website, www.tax.virginia.gov,
distributable net income of the estate or trust. A schedule or to make a payment online. Payments are electronically
other statement of the income and modifications attributable transferred from your savings or checking account. There is
to each beneficiary must be attached to Form 770 and no fee charged by the Department.
provided to each beneficiary by the fiduciary on Schedule 5, WHEN TO FILE AND PAY THE TAX
Beneficiary’s Information (Federal Schedule K-1 Equivalent).
Calendar year filers must file Form 770 no later than May 1,
It is not acceptable to require the beneficiary to compute his
2023. Fiscal year returns are due no later than the 15th day
or her own modification from the federal information provided
of the 4th month following the close of the taxable year. If
on the federal Schedule K-1.
the due date falls on a Saturday, Sunday or legal holiday,
If the beneficiaries will qualify for the credits available to Form the return must be filed by the next succeeding day that is
770 filers, the fiduciary must provide each beneficiary with not a Saturday, Sunday or legal holiday. Returns can be
the information from Schedule 5 necessary to compute and/ filed and payments made electronically. If filing by paper, the
or claim the credit(s). return must be accompanied by full payment of the tax due
as reported on the return. If not filing electronically, make
RECORD KEEPING
checks payable to the Treasurer of the city or county where
Fiduciaries should retain the records pertaining to each the return is filed.
income tax return of the estate or trust for 3 years from the due
date of the return or the date the return was filed, whichever ESTIMATED TAX
is later. If the IRS extends the time required for the retention TRUSTS: Trusts must make payments of estimated tax if
of federal records, the Virginia records should be kept for the the income tax liability on Form 770 for the taxable year will
same period of time. exceed $150.
SETOFF DEBT COLLECTION ACT ESTATES: Estates are not required to make estimated tax
Before any refund can be issued, Virginia law requires the payments until the first taxable year that ends 2 or more years
Department of Taxation to check for outstanding debts of the after the decedent’s date of death. Estimated tax payments
taxpayer with agencies of the Commonwealth of Virginia, must be made for that taxable year and subsequent taxable
Virginia local governments, the Virginia court system and years if the income tax liability will exceed $150.
the IRS. If any debts are found, regardless of the type of Estimated tax payments can be made using eForms or on
tax return filed, all or part of the refund may be withheld to paper by using Form 770ES. If Form 770ES is needed, see
satisfy the debt. “Where to Get Forms and Assistance” earlier in this section.
III. FILING INFORMATION If the estimated tax is underpaid, the fiduciary may be subject
to an addi tion to tax.
WHERE TO GET FORMS AND ASSISTANCE
ADDITION TO TAX FOR UNDERPAYMENT OF
Assistance is available at the offices of the Commis sioner
of the Revenue, Director of Finance or Director of Tax ESTIMATED TAX, FORM 760C OR FORM 760F
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An addition to tax is assessed if the fiduciary did not pay ADJUSTMENTS
enough estimated tax through timely payments or did not
Estates and trusts are required to report to the Department
have enough income tax withheld throughout the year. The
federal adjustments and pay any additional amounts due
addition to tax does not apply if each payment is made on
within one year after the final determination date of such
time and:
adjustments (“the one-year requirement”). For the purposes
1. the total tax paid (including tax withheld and timely of the one-year requirement, the “final determination date”
estimated tax paid) was at least 90% (66 2/3% for farmers, is defined as one of the following:
fishermen or merchant seamen) of the total 2022 tax
• If the federal adjustment is the result of an audit or
liability or 100% of the income tax liability for 2021. To
other action by the IRS, the final determination date is
determine if the requirement is met, reduce the tax by the
defined as the first day on which no federal adjustments
amount of all nonrefundable credits;
arising from that audit or other action remain to be finally
2. the sum of installment underpayments for the year is $150 determined. For agreements required to be signed by
or less; or the IRS and the taxpayer, the final determination date is
3. you qualify for one of the exceptions shown on Form 760C defined as the date on which the last party signed the
(Form 760F for farmers, fishermen or merchant seamen). agreement.
If the estate or trust is subject to the addition to tax for • If the federal adjustment is the result of an audit or other
underpay ment of estimated tax, complete Form 760C or action by the IRS, and the taxpayer filed as a member
760F and pay the amount computed on Form 760C or 760F. of a Virginia combined or consolidated return, the final
Computation of the Virginia underpayment of tax is similar to determination date is defined as the first day on which
the federal computation. The addition to tax is reported on no related federal adjustments arising from that audit
Form 770 by completing Line 11 of Schedule 1. remain to be finally determined for the entire group.
• If the federal adjustment results from filing an amended
EXTENSION OF TIME FOR FILING
federal return, a federal refund claim, or an administrative
You are allowed an automatic 6-month extension of time to adjustment request or if it is a federal adjustment reported
file your tax return. This provision does not extend the due on an amended federal return or other similar report, the
date for payment of taxes; however, you must pay at least final determination date is defined as the day on which the
90% of your tax by the original due date for filing the return amended return, refund claim, administrative adjustment
(May 1, 2023. for calendar year filers). Payments of tentative request, or other similar report was filed.
tax must be made by the due date. Payments can be made
using eForms or by using Form 770IP. If you file your return If you are an owner of a partnership and receive Form
during the extension period, but do not pay the tax due when 502FED-1, Virginia Partnership-Level Federal Adjustments
you file your return, both the extension penalty and the late Report, from the partnership and need to file an amended
payment penalty may apply. The extension penalty will apply Virginia return in order to report the distributive share of the
from the due date of the return through the date the return is partnership-level adjustment, you must enclose a copy of
filed and the late payment penalty will apply from the date the Form 502FED-1 with the amended return.
return is filed through the date of payment. To avoid paying Any taxpayer filing an amended federal return must also file
the late payment penalty during the extension period, you an amended state return and must pay any additional tax
must pay any tax owed when you file the return. and interest due, if applicable.
If you file your return within 6 months from the due date, In addition, if you file an amended return with any other state
but you do not pay at least 90% of your tax by the original that results in a change that would affect your Virginia income
due date for filing your return, you will be subject to an tax, you must file an amended Virginia tax return within 1 year.
extension penalty of 2% per month. The penalty is applied If the changes or adjustments result in a decrease in
to the balance of tax due with the return from the original due the fiduciary’s income tax liability, Virginia law allows the
date through the date of payment. The maximum extension Department of Taxation to issue a refund only if the amended
penalty is 12% of the tax due. If you file more than 6 months return is filed within:
after the original due date, the extension provisions will not
apply, and you will be subject to the late filing penalty. In • 3 years from the due date for filing the original return,
addition to these penalties, you will be subject to interest including filing extensions;
charges on any balance of tax due with your return, even if • 1 year from the final determination date for the amended
you meet the 90% payment requirement. federal return or federal change, whichever is later,
It is not necessary to file Form 770IP if you are CERTAIN provided the refund requested is attributable only to such
that your tax return will result in a refund because penalties change or adjust ment;
are not assessed on a refund return; however, by law the • 1 year from the final determination of the amended return
Department of Taxation may issue a refund only if the return of any other state or change or correction in the income
is filed within 3 years of the original due date or extended tax of the taxpayer for any other state, provided that the
due date on the return, whichever is later. refund does not exceed the amount of the decrease in
Virginia tax attributable to such change or correction;
AMENDED RETURNS AND FEDERAL
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• 2 years from the filing of an amended Virginia return • Other income tax credits should be claimed in the order
resulting in payment of additional tax, provided the in which they provide the maximum benefit, regardless
claim for refund raises issues pertaining solely to the of the order shown on the form.
prior amended return and the claim does not exceed the • Claim only as much credit as can be used to offset
amount of additional tax paid as a result of such prior tax liability and keep accurate records of the carryover
amended return; or available for each credit.
• 2 years from the payment of an assessment, provided • Each pass-through entity must file Form PTE with the
the amended return raises issues relating only to the Department of Taxation within 30 days after the credit is
prior assessment and the refund does not exceed the granted and at least 90 days before filing their income
amount of tax paid on the prior assessment. tax return. A copy of the certification letter from the
HOW AND WHERE TO FILE AN AMENDED administering agency is a required enclosure with Form
RETURN PTE.
If amending your return, check the "amended return" box. In • Many credits may not be claimed on your return or
addition, enter the appropriate amended return reason code allocated to beneficiaries until after you have submitted an
(see below) in the space provided. Select the reason code application and have been notified in writing that you are
that best indicates why your return is being amended and allowed to claim the credit. If your return is due and you
enclose the appropriate documentation. have not yet been notified, you have the option to either:
• Pay at least 90% of your tax liability by the return due
Code Amended Return Reason
date and file your return on extension after receiving
03 Federal Return Amended or Adjusted – such notification, or
Enclose copy of IRS final determination, if
applicable • File your return by the due date without claiming the
credit, and file an amended return after you have
04 Virginia Return – Changes to subtractions, received such notification.
deductions, additions, and credits
01 NOL CREDIT FOR TAX PAID TO ANOTHER STATE
02 Partnership Level Federal Adjustment – RESIDENT FIDUCIARY:
Enclose Form 502FED-1 A resident fiduciary is required to report its entire federal
05 Pass-Through Entity Elective Tax Payment taxable income on Form 770, regardless of whether the entire
Credit income was derived from sources in Virginia. If the fiduciary is
liable for payment of income taxes to another state on earned
30 Other – Enclose Explanation
or business income derived from that state, or any gain (if
Amended returns can be filed and payments made included in federal adjusted gross income) on the sale of a
electronically. If you are unable to file and pay electronically, capital asset outside Virginia, provided the income is taxed
obtain a blank Form 770 for the same taxable year and write by Virginia as well as the other state (see Va. Code § 58.1-
“AMENDED” at the top or check the Amended box and enter 332 for information on capital assets), a credit is generally
the amended reason code. Then complete the form using allowed for taxes paid to the other state, provided the income
the corrected figures as if it were the original return. Do not is taxable both to Virginia and the other state. The credit is
make any adjustments to the return to show refunds received computed on Form 770, Schedule 4.
or balances paid with the original return. EXCEPTION: A Virginia fiduciary deriving business
Enclose a complete copy of your amended federal return income as a nonresident in Arizona, California, the
and the Virginia Modification Worksheet, if applicable. District of Columbia or Oregon may not claim a credit
on the Virginia return for taxes paid to those states.
You will be contacted if additional information is needed. File The credit must be claimed on the other state’s
the amended return with the Commissioner of the Revenue, nonresident fiduciary income tax return.
Director of Finance or Director of Tax Administration for
the city or county where the original return was filed (see This credit applies only to income taxes paid to other states.
the “Where to File” section for further information). Mailing Taxes paid to cities, counties, the federal government and
addresses are at the back of these instructions. foreign governments do not qualify for the credit. The credit
is not allowed for franchise tax, license tax, excise tax,
IV. CREDITS unincorporated business tax, occupation tax or any other
GENERAL INFORMATION: The following rules apply when tax characterized as such, even though the tax is based on
computing tax credits: business income. In addition, the credit is not allowable for
taxes paid to any state that is prohibited by its own legislation
• Where a credit is limited to a percentage of the tax, the
from imposing an income or commuter tax.
“tax” for this purpose shall be gross tax, less the credit for
taxes paid to other states. The credit must be computed separately for each state.
Enclose separate schedule for each state. A complete copy
of the income tax return filed with any state(s) for which a
credit is claimed must be enclosed with Form 770. Copies
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of cancelled checks or other income statements are not the company is engaged in a qualifying industry in Virginia. If a
sufficient for verification of the income tax liability to the taxpayer is located in an enterprise zone or in an economically
other state. distressed area (as defined by the Virginia Department of
NONRESIDENT FIDUCIARY: As a general rule, Virginia Economic Development), the threshold is reduced from 50 to
law does not provide a credit to a nonresident fiduciary on 25. Credits will be recaptured proportionately if employment
business income taxable by both Virginia and the fiduciary’s decreases during the 5 years following the initial credit year.
state of residence. Therefore, such credits typically must This nonrefundable credit is equal to $1,000 per qualifying
be claimed on the income tax return filed with the state of new job in excess of the 50/25 job threshold in enterprise
residence. zones or economically distressed areas. This credit is spread
EXCEPTION: If the nonresident fiduciary is liable for over 2 years for taxpayers whose credit year begins on or
income taxes as a resident of Arizona, California, the after January 1, 2009.
District of Columbia or Oregon on income derived The credit only applies to facilities where an announcement
from Virginia sources, credit for tax paid to that state to expand or establish such a facility was made on or
will be allowed on the Virginia return. after January 1, 1994. The credit must be claimed ratably
A complete copy of the income tax return filed with any beginning with the taxable year following the year in which
state(s) for which a credit is claimed must be enclosed with the facility is established or expanded, or the new qualifying
Form 770. Copies of cancelled checks or other income jobs are added. Unused credits may be carried forward for the
statements are not sufficient for verification of the income next 10 taxable years. A qualified business firm receiving an
tax liability to the other state. Enterprise Zone Job Creation Grant under Va. Code § 59.1-
547 shall not be eligible to receive a Major Business Facility
NEIGHBORHOOD ASSISTANCE ACT TAX Job Tax Credit for any job used to qualify for the Enterprise
CREDIT Zone Job Creation Grant.
The Virginia Neighborhood Assistance Act provides tax To apply for this credit, complete Form 304. All applications
credits to individuals and businesses that make qualified must be submitted to the Department of Taxation, Tax
donations directly to pre-approved Neighborhood Assistance Credit Unit, P.O. Box 715, Richmond, VA 23218‑0715 90
Program organizations whose primary function is to provide days prior to the due date of your return. A letter will be sent
educational or other qualified services for the benefit of to certify the credit.
low-income families. Individuals may receive a credit for
a donation of cash or marketable securities to an eligible HISTORIC REHABILITATION TAX CREDIT
organization. Businesses may receive a credit for a donation Individuals, estates, partnerships, trusts or corporations
of money, marketable securities, property, limited professional incurring eligible expenses in the rehabilitation of a certified
services or contracting services. Licensed veterinarians, historic structure are entitled to claim a credit against individual
physicians, dentists, nurses, nurse practitioners, physician income tax, fiduciary income tax, corporation income tax, the
assistants, chiropractors, optometrists, dental hygienists, bank franchise tax, and taxes imposed against insurance
pharmacists, professional counselors, clinical social workers, companies and utility companies. The credit is equal to 25%
clinical psychologists, marriage and family therapists, of eligible rehabilitation expenses. To qualify, the cost of the
physical therapists, and physician specialists who donate rehabilitation must equal at least 50% (25% if the building
their services for an approved clinic may also be eligible for is an owner occupied residence) of the assessed value of
credits. The amount of credit attributable to a partnership the building for local real estate tax purposes in the year
or S corporation must be allocated to the partners and preceding the start of the rehabilitation. For taxable years
shareholders in proportion to their ownership or interest in beginning on and after January 1, 2017, the amount of the
the partnership or S corporation. Any unused tax credits may Historic Rehabilitation Tax Credit that may be claimed by
be carried forward for the next five taxable years. For a list of each taxpayer, including carryover amounts, cannot exceed
approved organizations or additional information, contact the $5 million for any taxable year. The rehabilitation work
Virginia Department of Social Services, Neighborhood must be certified by the Virginia Department of Historic
Assistance Program, 801 E. Main Street, Richmond, VA Resources as consistent with the Secretary of the Interior’s
23219‑3301 or the Virginia Department of Education, Standards for Rehabilitation. The request for certification of
23rd Floor, P.O. Box 2120, Richmond, VA 23218‑2120, the completed project must be submitted within 1 year of the
Attn: Neighborhood Assistance Tax Credit Program completed work. Any unused credit may be carried forward
for 10 years. Applications for participation in the program
for Education or email tax.credits@doe.virginia.gov.
may be obtained by contacting the Virginia Department of
MAJOR BUSINESS FACILITY JOB TAX CREDIT Historic Resources, 2801 Kensington Avenue, Richmond,
For taxable years beginning on and after January 1, 1995, but VA 23221, 804.482.6446, or by visiting www.dhr.virginia.
before July 1, 2025, individuals, estates, trusts, corporations, gov/tax‑credits/.
banks, insurance companies and telecommunications BARGE AND RAIL USAGE TAX CREDIT
companies may claim a Virginia tax credit if the taxpayer
An income tax credit is allowed for transporting cargo
creates at least 50 new full-time jobs in connection with the
containers by barge and rail rather than by trucks or other
establishment or expansion of a major business facility, and
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motor vehicles on the Commonwealth’s highways. The of 1% per month, compounded monthly from the date the
amount of the credit is $25 per 20-foot equivalent, unit or 16 tax credits were claimed.
tons of noncontainerized cargo or one unit of roll-on/roll-off Taxpayers cannot receive a grant from the Small Business
cargo moved by barge or rail rather than by trucks or other Investment Grant Fund and claim the Qualified Equity and
motor vehicles on Virginia’s highways. Containers for which Subordinated Debt Investments Tax Credit for the same
this credit is claimed must result from a diversion of shipments investment.
from the highways. To receive a credit, an international
trade facility is required to apply to the Virginia Department Taxpayers cannot claim the credit if using the subtractions
of Taxation. No more than $500,000 in tax credits can be for long-term capital gains, investments in a Virginia venture
issued in any fiscal year. The Department will determine the capital account, or investments in a Virginia real estate
allowable credit amount for the taxable year and provide a investment trust for the same investment.
written certification of the allowable credit amount to each This credit requires pre‑approval by the Department of
taxpayer. Taxation. Investors must apply to the Department by April 1
The business must apply by April 1st using Form BRU. of the year following the year the investment was made using
Submitting a late application will disqualify you from the credit. Form EDC. Taxpayers filing Form EDC after April 1 will be
All applications must be sent to the Virginia Department denied this credit. Since the tax return of most individuals
of Taxation, Tax Credit Unit, P.O. Box 715, Richmond, is due on May 1, most investors will need to file a return on
VA 23218‑0715. This credit requires certification from the extension or amend their original return to claim the credit.
Tax Credit Unit to be claimed on your tax return. A letter Pass-through entities must file Form PTE with the
will be sent to certify the credit. For assistance write to the Department of Taxation at least 90 days before filing their
Department of Taxation, Tax Credit Unit, P. O. Box 715, income tax return. A copy of the certification letter from the
Richmond, VA 23218‑0715 or call 804.786.2992. Department of Taxation is a required enclosure to Form PTE.
QUALIFIED EQUITY AND SUBORDINATED DEBT Visit the Department’s website at www.tax.virginia.gov to
INVESTMENTS TAX CREDIT obtain Form QBA, Form EDC and Form PTE. Information
on the application process may be obtained by writing to the
Taxpayers making a “qualified investment” in the form of
equity or subordinated debt in a “qualified business” may be Virginia Department of Taxation, Tax Credit Unit, P. O. Box
eligible for this credit. Businesses may apply for designation 715, Richmond, VA 23218‑0715, or by calling 804.786.2992.
as a qualified business using Form QBA. The qualification is COALFIELD EMPLOYMENT ENHANCEMENT TAX
valid only for the calendar year of the application. Therefore, CREDIT
the business needs to reapply each year for qualification. To
This credit expired on December 31, 2021. Only credits
qualify, the business must (1) have annual gross revenues
earned in prior taxable years may be claimed based on
of no more than $3 million in its most recent fiscal year, (2)
a redemption schedule. The allowable credit must be
have its principal office or facility in the Commonwealth, (3)
computed on Form 306D and reported on the return filed
be engaged in business primarily in or having substantially
for the taxable year in which the credit is claimed. Form
all of its production in the Commonwealth and (4) have
306D must be enclosed with the tax return when filed. See
not obtained during its existence more than $3 million in
aggregate gross cash proceeds from the issuance of its the instructions for Form 306D for additional information.
equity or debt investments (not including commercial loans LAND PRESERVATION TAX CREDIT
from chartered banking or savings and loan institutions).
This tax credit is for taxpayers that convey land or an interest
The credit equals 50% of the qualified business investments in land located in Virginia to a public or private agency that is
made during the taxable year. The total amount of credit eligible to hold such land or interest therein for conservation
granted is limited to $5 million. One-half of this amount must or preservation purposes. The conveyance must be in
be allocated to commercialization investments and the other perpetuity.
half is available for all other qualifying investments. If credit
Credits granted for 2007 and beyond are 40% of the fair
applications for either half exceed the allowed amount, the
market value, as substantiated by a “qualified appraisal”
credits for that half will be prorated. If credit applications for
prepared by a “qualified appraiser”, as those terms are
either half are less than the allowed amount, the balance
defined under applicable federal law and regulations
will be available for allocation to the other half. The total
governing charitable contributions. Beginning with the 2015
amount of credit that may be used per taxpayer per taxable
calendar year, the maximum amount of credits that may be
year may not exceed $50,000. The credit is nonrefundable.
issued in a calendar year may not exceed $75 million. For
Unused credits may be carried forward for up to 15 years.
Taxable Years 2009, 2010, and 2011, the total amount of
Except in certain instances equity and debt investments held
credit per taxpayer per taxable year was limited to $50,000
in connection with a qualified business investment must be
or the total tax liability, whichever was less. For Taxable
held by the investor for at least 3 full calendar years following
Years 2012, 2013, and 2014, the credit limit per taxpayer per
the calendar year for which the credit is allocated. If the
taxable year was $100,000 or the total tax liability, whichever
holding period is not met, the unused credit amount will be
was less. For Taxable Years 2015 and thereafter the credit
forfeited, and an assessment will be issued for the amount
limit per taxpayer per taxable year is $20,000 or the total
used, to which shall be added interest, computed at the rate
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tax liability, whichever is less. However, for any fee simple employee, the credit may not exceed $500 per qualified
donation of land conveyed to the Commonwealth on or after employee annually. If the recipient of the training is a non-
January 1, 2015, the amount of the credit claimed is subject to highly compensated worker, the credit may not exceed
a higher limitation of $100,000 per taxpayer for each taxable $1,000 per non-highly compensated worker annually.
year, provided that no part of the charitable contributions “Eligible worker training” means the training of a qualified
deduction under § 170 of the Internal Revenue Code related employee or non-highly compensated worker in the form of:
to such fee simple donation is allowable by reason of a sale
or exchange of property. For taxpayers affected by the credit • credit or noncredit courses at any institution recognized
reductions for taxable years 2009, 2010, 2011, and 2015 and on the Eligible Training Provider List or at any Virginia
thereafter, an additional 3-year carryforward will be added public institution of higher education, as such term is
to the credit. defined in Va. Code § 23.1-100, or as described in
Va. Code §§ 23.1-3111, 23.1-3115, 23.1-3120, and
Any taxpayer holding Land Preservation Tax Credits that 23.1-3125, that results in the qualified employee or
originated on or after January 1, 2002, may transfer unused non-highly compensated worker receiving a workforce
but otherwise allowable credits for use by another taxpayer credential; or
on such taxpayer’s Virginia income tax return. Transfers and
pass-through allocations derived from donations recorded • instruction or training that is part of an apprenticeship
on or after January 1, 2007, are generally subject to a fee. agreement approved by the Commissioner of Labor
See Schedule A of Form LPC-1 or Form LPC-2 for further and Industry.
information. “Qualified employee” means an employee of a business
If this credit is taken, then for the next 3 years taxpayers eligible for a credit under this section in a full-time position
cannot take a subtraction for the gain on the sale of land requiring a minimum of 1,680 hours in the entire normal year
or easements dedicated to open-space use. A subtraction of the business’ operations if the standard fringe benefits
is allowed for any gain or income recognized by a taxpayer are paid by the business for the employee. Employees in
on the application of a Land Preservation Tax Credit against seasonal or temporary positions may not qualify as qualified
a Virginia income tax liability to the extent that the gain employees. “Qualified employee” does not include an
is included in and not otherwise subtracted from federal owner or relative. “Non-highly compensated worker” means
adjusted gross income. The transfer of the credit and its a worker whose income is less than Virginia’s median wage,
application against a tax liability shall not create gain or loss as reported by the Virginia Employment Commission,
for the transferor or the transferee. in the taxable year prior to applying for the credit. “Non-
highly compensated worker” does not include an owner or
Before claiming the credit, complete and file Form LPC-1 relative. When claiming this credit on the basis of eligible
and/or Form LPC-2 with the Department of Taxation at least worker training, the credit is allowable against individual
90 days before filing an annual return. For land or an interest income tax, estate and trust tax, corporate income tax, bank
in land conveyed before January 1, 2020, no credit will be franchise tax, insurance premiums license tax, and license
allowed unless a completed credit application with regard tax on telegraph, telephone, water, heat, light, power, and
to such conveyance has been filed with the Department pipeline companies.
of Taxation by December 31 of the 3rd year following the
calendar year of the conveyance. For a conveyance made Before claiming the credit on their income tax return,
on or after January 1, 2020, no credit will be allowed unless a employers and businesses must apply for certification
completed credit application with regard to such conveyance of the amount of allowable credit using Form WTC,
has been filed with the Department by December 31 of the Worker Training Tax Credit Application, by April 1 of the
2nd year following the calendar year of the conveyance. year following the year in which the training expenses or
Additionally, applicants filing for tax credits of $1 million or orientation, instruction, and training program expenses were
more must apply to the Department of Conservation and paid or incurred. All approved employers and businesses
Recreation to receive verification of the conservation value. filing a timely Form WTC will be notified of their allowable
The Department of Taxation will issue a letter acknowledging credit by June 30 of the calendar year following the year in
the amount of the credit. For assistance write to the Virginia which the expenses were incurred. The maximum Worker
Department of Taxation, Tax Credit Unit, P. O. Box 715, Training Credits granted to all employers and businesses
Richmond, VA 23218‑0715, or call 804.786.2992. is limited to $1 million annually. If the total credits approved
exceed this amount, each will be prorated. This credit is
WORKER TRAINING TAX CREDIT nonrefundable but excess credit may be carried over for
For taxable years beginning on and after January 1, 2019, the next 3 taxable years. For information on pre-approved
but before July 1, 2025, the Worker Training Credit allows apprenticeship programs, contact the Virginia Department
businesses to claim a tax credit for the training costs of of Labor and Industry at 804.786.1035.
providing eligible worker training to qualified employees. VIRGINIA HOUSING OPPORTUNITY TAX CREDIT
The credit is 35% of expenses incurred by the business
during the taxable year for eligible worker training, subject to Effective for taxable years beginning on and after January 1,
certain limitations. If the recipient of the training is a qualified 2021, but before January 1, 2026, a housing opportunity tax
credit (HOTC) is available for certain low-income building
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projects in an amount up to the amount of federal low- the balance of credits shall be allocated for any qualified
income housing tax credit (LIHTC) allocated or allowed by project, regardless of location.
the Virginia Housing Development Authority (VHDA). To be For more information, contact Virginia Housing
qualified, the project is required to be a qualified low-income
Development Authority, 601 S. Belvidere Street,
Richmond, VA 23220,
building, as defined under federal law, that is: call Stephanie Flanders at
• Located in Virginia; 804.343.5939, or visit www.virginiahousing.com.
• Placed in service on or after January 1, 2021; and PASS‑THROUGH ENTITY ELECTIVE TAX PAYMENT
• Allocated HOTC by VHDA. CREDIT
For taxable years beginning on and after January 1, 2021, For taxable years beginning on and after January 1, 2021,
but before January 1, 2026, a qualified taxpayer may claim but before January 1, 2026, a qualifying pass-through entity
a HOTC against Virginia tax liability prior to reduction by may make an annual election to pay a 5.75% tax at the
any other credits allowed the taxpayer. entity level for the taxable year. A corresponding refundable
The credit is allowed against the individual income tax, income tax credit is available for Taxable Years 2021 through
estate and trust income tax, corporate income tax, bank 2025 for any amount of income tax paid by a qualifying PTE
franchise tax, insurance premiums license tax, and license having Virginia taxable income if the PTE makes the election
tax on telegraph, telephone, water, heat, light, power, and and pays the elective income tax imposed at the entity level.
pipeline companies. The effect of the elective income tax and corresponding
refundable credit is to allow the qualifying PTE to shift the
The HOTC may be allocated by pass-through entities to income tax burden from the PTE owners to the PTE itself.
some or all of its partners, members, or shareholders in Partnerships must report the amount of PTET on the VK-1
any manner agreed to regardless of whether or not the and the owners must claim their share of PTET credit on
taxpayer is allocated or allowed any portion of any federal Schedule CR. For assistance, contact the Department of
low-income housing tax credit with respect to the qualified Taxation, Tax Credit Unit, P. O. Box 715, Richmond, VA
project, whether or not the allocation of the HOTC under 23218‑0715, or call 804.786.2992.
the terms of the agreement has substantial economic effect
within the meaning of § 704(b) of the Internal Revenue
Code, and whether or not the taxpayer is deemed a partner V. OTHER CONSIDERATIONS FOR
for federal income tax purposes, as long as the partner or FIDUCIARIES
member meets the definition under applicable state law, In addition to the filing of income tax returns, fiduciaries
and has been admitted as a partner or member on or prior are generally responsible for ensuring that all Virginia tax
to the date for filing the return, including any amendments, obligations of an estate or trust have been fulfilled. The
with respect to the year of the HOTC. Pass-through entities information in this section provides details on the settlement
or qualified taxpayers may assign all or any part of the of accounts and outlines other Virginia taxes for which an
interest, including interest in the tax credits, to one or estate or trust may be held liable.
more pass-through entities or qualified taxpayers, and the
qualified taxpayer shall be able to claim the HOTC as long SETTLEMENT OF ACCOUNTS
as the interest is acquired prior to the filing of the tax return In connection with the settlement of fiduciary accounts,
claiming the HOTC. special attention should be given to the provisions of Va. Code
For calendar years 2022 through 2025, the total amount §§ 58.1-22 and 58.1-23, dealing with the collection of taxes
of housing opportunity tax credits authorized for qualified and levies upon property under the control of the fiduciaries
projects shall not exceed $60 million per calendar year. and the courts. The sections are set out below.
Credits issued each calendar year shall be allowed ratably, Va. Code § 58.1‑22. Accounts Not Settled Until
with one-tenth of the total amount of credits allowed annually Taxes Paid or Provided for – No commissioner
for 10 years over the credit period, except that there shall of accounts shall, under Va. Code § 64.2-1211, file
be a reduction in the tax credit allowable in the first year of any report of an account of the transactions of any
the credit period due to a federal law calculation, and any fiduciary not governed by Va. Code § 58.1-911 until
reduction in the credit in the first taxable year of the credit the commissioner finds that all taxes, whether state,
period shall be allowable for the first taxable year following county or city, assessed and chargeable upon the
the credit period. property in the hands of the person for whom such
Twenty million of credits shall be first allocated exclusively account is settled have been paid or unless such
for qualified projects in a locality with a population no account shall show that there remains in the hands
greater than 35,000 as determined by the most recent of such person a sufficient sum, over and above the
United States census. Allocation of Virginia HOTC shall charges of administration, to pay all taxes charged
constitute the minimum amount of tax credits allocated for against such person in his capacity as fiduciary.
qualified projects in these localities. However, if the amount Va. Code § 58.1‑23. Inquiries Required of
of the tax credits requested for qualified projects in these Fiduciaries – Every personal representative, before
localities is less than the total amount of credits available, settling the estate in his hands, shall make inquiry
of the treasurer of the county or city wherein the
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decedent last resided and of the Department with entire year, you are not required to pay the use tax. If the
respect to any unpaid taxes and levies assessed purchases were from out-of-state mail order catalog(s) and
against his decedent. exceed $100 or the purchases were of any amount from
sources other than mail order catalog(s), then you must
Inquiries made with respect to the provisions of Va.
report these purchases and pay consumer’s use tax on the
Code § 58.1‑23 should be addressed to the Virginia
Department of Taxation, Customer Services, P.O. Box TOTAL amount of untaxed purchases from all sources during
the calendar year. Nonprescription drugs and proprietary
1115, Richmond, VA 23218‑1115.
medicines purchased for the cure, mitigation, treatment or
COMPOSITE FILING prevention of diseases in human beings are exempt from the
Fiduciaries may request to file, on behalf of nonresident consumer’s use tax.
beneficiaries or participants, a unified return thereby relieving The statewide retail sales and use tax rate is 5.3%. Some
these persons or entities of the responsibility of filing a Virginia localities have additional regional or local taxes. In the
nonresident income tax return. There are certain conditions Northern Virginia and Hampton Roads regions, there is an
that must be met in order to be granted approval to file a additional 0.7% tax, making the total tax 6%. In addition,
composite return. For further information call the Department effective October 1, 2020, there is a new 0.7% additional tax
of Taxation, Customer Services at 804.367.8031. in the Central Virginia Region, making tax in that region 6%.
PROBATE TAX Effective July 1, 2018, there is an additional one percent
(TAX ON WILLS AND ADMINISTRATIONS) sales and use tax in the “Historic Triangle,” defined as the
City of Williamsburg and the Counties of James City and
A state tax is imposed on the probate of wills and grants of
York. These localities are within the Hampton Roads Region,
administration that are not exempt by law. A probate tax return
making the rate in these areas 7% (6% state tax and 1%
must be filed with the clerk of the court at the time the will
local tax).
is offered for probate, or grant of administration is sought, if
the estate exceeds $15,000 in value at the date of death of Additional Local Option Tax: The following localities have
the decedent. There is no probate tax on estates valued at adopted an additional 1% local option sales and use tax:
$15,000 or less. For estates exceeding $15,000 in value, the The City of Danville, Charlotte, Gloucester, Halifax, Henry,
tax is 10 cents per $100, or fraction of $100, including the Northampton and Patrick Counties. This tax is in addition to
first $15,000. In addition, the county or city in which the will is the one percent general local sales and use tax authorized
offered for probate, or grant of administration is sought, may under current law. The combined tax in these localities is
also impose a local probate tax equal to 1/3 of the state tax. 6.3% (4.3% state tax, 1% local tax and 1% additional local
For further information on the probate tax, contact the option tax). Sales of eligible food items and personal hygiene
Clerk of the Circuit Court in the appropriate jurisdiction, products are subject to a reduced sales tax rate of 2.5% (1.5%
or the Department of Taxation at 804.367.8031. state tax and 1% local tax).
ESTATE TAX These additional local and regional taxes apply to general
retail sales only and do not impact the rate charged for sales
Virginia law does not currently impose an estate tax on the
of food for home consumption, which remains 2.5%.
estates of decedents whose date of death is on or after
July 1, 2007. For further information, visit the Department’s For further information on the consumer’s use tax, visit
website at www.tax.virginia.gov, call 804.367.8031, or www.tax.virginia.gov, write to the Virginia Department
write to Virginia Department of Taxation, P.O. Box 1115, of Taxation, P.O. Box 1115, Richmond, VA 23218‑1115 or
Richmond, VA 23218‑1115. call 804.367.8037.
CONSUMER’S USE TAX LITTER TAX
If an estate or trust that is not engaged in a trade or business Litter tax is reported on a separate return, Form 200. This
is not charged sales tax on purchases of tangible personal tax is imposed on every “person,” who on January 1 of the
property (other than for resale), it must file a Virginia taxable year, was engaged in business as a manufacturer,
Consumer’s Use Tax Return for Individuals, Form CU‑7. wholesaler, distributor or retailer of the following products:
food for human or pet consumption; groceries; cigarettes
Form CU‑7 and the tax are due the same day that the income
and tobacco products; soft drinks and carbonated waters;
tax return is due. If filing a tax due Form 770 return, do not
beer and malt beverages; wine; newspapers and magazines;
send a single payment to cover both the fiduciary return
paper products and household paper; glass and metal
liability and the consumer’s use tax liability. Form CU‑7 must
containers; plastic or fiber containers made of synthetic
be filed separately.
materials; cleaning agents and toiletries; nondrug drugstore
If engaged in a trade or business, file a Virginia Consumer’s sundry products; distilled spirits; and motor vehicle parts.
Use Tax Return,Form ST‑7.Form ST‑7 and the tax are due “Person” means any natural person, corporation, partnership,
by the 20th day of the month following the month in which administrator, fiduciary representative or group of individuals
the purchase was made. or entities of any kind operating such a business.
If the total amount of purchases were from out-of-state Litter tax is computed and filed on a calendar year basis for
mail order catalog(s) ONLY and totaled $100 or less for the all filers, regardless of the taxable year used for income tax
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purposes. The return, Form 200, and payment of the tax The instructions for Schedule 3, Line 11, explain
are due on May 1 of each year for the preceding year. For whether the amount should be entered on Line
further information on litter tax, contact the Department 2(a) or Line 2(b).
of Taxation at 804.367.8037. See Schedule 3, Lines 3 and 8, for amounts on
Lines 2FA and 2FS.
VI. LINE BY LINE INSTRUCTIONS
Line 3: Virginia taxable income of fiduciary. Add the
FORM 770 – PAGE 1
amounts reported on Lines 1 and 2(a), or subtract
Complete the information in the sections at the top of Form the amount on Line 2(b) from the amount on Line
770. If this return is for a period other than January 1 to 1, and enter the result on Line 3.
December 31 of the taxable year shown on your return,
indicate the fiscal beginning and ending dates in the space Line 4: Virginia income tax. Compute the tax on the
income reported on Line 3, according to the rate
provided. The taxable period of your Virginia return must be
schedule below.
the same as that of your federal return. It is important that the
name, address, and Federal Employer Identification Number • If Line 3 is $3,000 or less, the tax is 2% of
(FEIN) are entered correctly. Do NOT use the decedent’s Line 3;
social security number or the preparer’s FEIN as the • If Line 3 isover $3,000, but not over $5,000,
estate’s or trust’s FEIN. the tax is $60 plus 3% of the excess over
If the estate or trust has not received its FEIN, write “Applied $3,000;
For” in the appropriate box and notify the Department of • If Line 3 is over $5,000, but not over
Taxation in writing at P. O. Box 1115, Richmond, VA 23218‑ $17,000, the tax is $120 plus 5% of the
1115 as soon as the FEIN is received. excess over $5,000; or
Locality Code. Look up the 3-digit code on the back cover • If Line 3 is over $17,000, the tax is $720 plus
of the instructions for the locality in which the fiduciary 5.75% of the excess over $17,000.
qualified. Enter the corresponding number in the boxes that
are provided on the form. If the fiduciary is not qualified, enter Line 5: Payments and credits. Enter total payments and
300 as the “unassigned” locality. credits. Add Lines 5(a) through 5(m) and Lines
o(iii) through (u).
Charitable Remainder Trust. Check the box for “Exempt -
Charitable Remainder Trust” under the FEIN section. On Line (a) Virginia income tax withheld. Enter the
3, enter zero for the amount of Virginia taxable income. A amount of any Virginia withholding on the wages,
schedule or other statement of the income, and all credits and salaries or other income of the decedent that was
modifications attributable to the beneficiary of the Charitable received by the estate. Enclose a copy of Forms
Remainder Trust must be provided to the beneficiary. W-2, W-2G, 1099-R, VK-1 and/or any other
documentation necessary to support the amount
Grantor Trust. Check this box if the fiduciary is a grantor claimed. Do not staple enclosures.
type trust.
(b) 2022 Estimated tax payments. Enter the
Final Return. Check this box if this is the final return for amount of any 2022 Virginia estimated tax
the fiduciary. payments made by the estate or trust, including
SCHEDULE 1 – COMPUTATION OF TAXABLE any overpayment credit applied from the fiduciary’s
INCOME AND TAX OF FIDUCIARY 2021 return. Do not include payments made on
behalf of a decedent for individual income tax
Before completing Schedule 1, complete all applicable purposes.
schedules on the back of Form 770.
(c) Extension payments made with Form 770IP.
Line 1: Federal taxable income of the estate or trust.
Enter the amount of tentative tax paid with the
Resident fiduciaries: fiduciary’s Form 770IP.
Enter the federal taxable income reported on
Form 1041. (d) Credit for tax paid to another state. Enter
the credit computed from Form 770, Schedule 4,
Nonresident fiduciaries:
Line 7. See “Credit for Tax Paid to Another State”
Enter the taxable income from Schedule 2, Line 8.
in Section IV of these instructions to see if you
Line 2: Fiduciary’s share of Virginia modifications. qualify for this credit.
Enter on Line 2(a) or Line 2(b), the net modifications
amount from Schedule 3, Line 11 on the back of A complete copy of the fiduciary return of any
the return. state for which the credit is claimed must be
enclosed.
If additions include an adjustment for an add
back of state and local income tax paid by a (e)-(u) Complete Schedule 5 on Page 3 of
pass-through entity for purposes of claiming the Form 770 to determine the allocations between
Pass-Through Entity Elective Tax Payment Credit, beneficiaries.
check the box provided on Line 2. (e) Neighborhood Assistance Act Tax Credit.
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Complete the worksheet below and enter the 4. Tax from Sch. 1, Line 4. ....... 4. ___________
allowable credit from Line 7 on Form 770, Line 5. Total of other credits claimed. 5. . ___________
5(e). 6. Subtract Line 5 from Line 4 .. 6. ___________
1. Fiduciary’s share of credit ... 1. ___________ 7. Allowable 2022 Credit. Enter
2. Carryover credit from the lesser of Line 3 or Line 6
prior year ............................. 2. ___________ here and on Sch. 1, Line 5(j) . 7. ___________
3. Subtotal: Add Lines 1 and 2 3. ___________ 8. Carryover to 2023 Form 770.
4. Tax from Schedule 1, Line 4 4. ___________ If Line 3 is larger than Line 7,
5. Credit for tax paid to another enter the difference .............. 8. ___________
state ..................................... 5. ___________ (k) Line reserved for future use.
6. Subtract Line 5 from Line 4. 6. ___________
(l) Line reserved for future use.
7. Allowable 2022 Credit. Enter the
lesser of Line 3 or Line 6 here and (m) Qualified Equity and Subordinated Debt
on Schedule 1, Line 5(e) ..... 7. ___________ Investments Tax Credit. Complete the worksheet
8. Carryover to 2023 Form 770. below and enter the allowable credit.
If Line 3 is larger than Line 7, 1. Fiduciary’s share of credit ... 1. ___________
enter the difference .............. 8. ___________ 2. Carryover credit from
(f) Enterprise Zone Act Tax Credit. This credit prior year ............................. 2. ___________
expired June 30, 2019. Only Enterprise Zone Real 3. Subtotal: Add Lines 1 and 2 .. 3. ___________
Property Investment Tax Credit carryover amounts 4. Tax from Schedule 1, Line 4.. 4. ___________
from prior years are allowed. Use the worksheet 5. Total of other credits claimed. 5. ___________
below to determine the carryover amount that can
6. Subtract Line 5 from Line 4 .. 6. ___________
be used on this year’s tax return.
1. Credit carried over from prior 7. Allowable 2022 Credit. Enter
years.......................................1. __________ the lesser of Line 3 or Line 6
2. Allowable credit: Enter the here and on Sch. 1, Line 5(m) 7. __________
amount from Line 1 or the 8. Carryover to 2023 Form 770.
maximum credit allowed......... 2. __________ If Line 3 is larger than Line 7,
3. Amount to be carried over enter the difference .............. 8. ___________
to next year (subtract Line 2
from Line 1)............................ 3. __________ (n)-(o) Coalfield Employment Enhancement Tax
(g) Major Business Facility Job Tax Credit. Enter Credit. Enter on Line 5(n)i the fiduciary’s credit as
the fiduciary’s credit as computed on Form 304. computed on Form 306D, Part II, Section 1, Line 1.
Enter on Line 5(n)iii the amount you used to allocate
(h) Historic Rehabilitation Tax Credit. Complete the the fiduciary’s credit share of the Coalfield Employment
worksheet below and enter the allowable credit. Enhancement Tax Credit - Full Tax Credit, from Form
1. Fiduciary’s share of credit 306D, Part II, Section 2, Line 3. Enter on Line 5(o)i the
Enclose certification ............. 1. ___________ amount you used to allocate the fiduciary’s share of the
Coalfield Employment Enhancement Tax Credit - Excess
2. Carryover credit from
Tax Credit, from Form 306D, Part II, Section 3, Line 5.
prior year ............................. 2. ___________
Add Lines 5(n)iii and (o)i and enter the total on Line
3. Subtotal: Add Lines 1 and 2 .. 3. ___________ 5o(iii). This is the fiduciary's share of the refundable
4. Tax from Schedule 1, Line ..4 4. ___________ credit.
5. Total of other credits claimed. ___________5. (p) Line reserved for future use.
6. Subtract Line 5 from Line 4. 6. ___________
(q) Land Preservation Tax Credit. Complete the
7. Allowable 2022 Credit. Enter the worksheet below and enter the allowable credit.
lesser of Line 3 or Line 6 here and
on Schedule 1, Line 5(h) ..... 7. ___________ 1. Fiduciary’s share of credit ... 1. ___________
8. Carryover to 2023 Form 770. 2. Carryover credit from
If Line 3 is larger than Line 7, prior year ............................. 2. ___________
enter the difference .............. 8. ___________ 3. Subtotal: Add Lines 1 and 2 . 3. ___________
(i) Line reserved for future use. 4. Tax from Schedule 1, Line 4.4. ___________
(j) Barge and Rail Usage Tax Credit. Complete the 5. Total of other credits claimed. 5. ___________
worksheet below and enter the allowable credit. 6. Subtract Line 5 from Line 4. 6. ___________
1. Fiduciary’s share of credit ... 1. ___________ 7. Allowable 2022 Credit. Enter
the lesser of Line 3 or Line 6
2. Carryover credit from
here and on Sch. 1, Line 5(q) 7. . ___________
prior year ............................. 2. ___________
8. Carryover to 2023 Form 770.
3. Subtotal: Add Lines 1 and 2 . 3. ___________
If Line 3 is larger than Line 7,
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enter the difference .............. 8. ___________ Enter the amount of the overpayment to be credited
(r) Line reserved for future use. to the fiduciary’s 2023 estimated income tax.
Line 9: Amount to be refunded. Subtract Line 8 from
(s) Worker Training Tax Credit. Complete the
Line 7 and enter the refund amount here.
worksheet below and enter the allowable credit.
1. Fiduciary’s credit share ....... 1. ___________ Line 10: Reserved for future use.
2. Carryover credit from Line 11: Amount from Form 760C or Form 760F. Enter
prior year .......................... 2. ___________ the addition to tax amount from Form 760C or
Form 760F and check the box, if applicable.
3. Subtotal: Add Lines 1 and 2 . 3. ___________
4. Tax from Sch. 1, Line 4. ........ 4.___________ FORM 760C OR FORM 760F
5. Total of other credits claimed.5. ___________ See the “Estimated Tax” section in Part III of these instructions
to determine if you owe an addition to tax. If exception 1 or
6. Subtract Line 5 from Line 4. 6. ___________
2 was met for all quarters, it is not necessary to complete
7. Allowable 2022 Credit. Enter
or enclose Form 760C or Form 760F. If exception 3 or 4
the lesser of Line 3 or Line 6
was used to calculate the addition to tax or to determine
here and on Sch. 1, Line 5(s) 7. . ___________
that you did not owe the addition to tax for any quarter,
8. Carryover to 2023 Form 770. you must enclose Form 760C and the associated
If Line 3 is larger than Line 7,
worksheet(s) with the return.
enter the difference .............. 8. ___________
If Form 760C or Form 760F is enclosed, complete Line 11
(t) Virginia Housing Opportunity Tax Credit. of Schedule 1. Enclose a check for the TOTAL amount of
Complete the worksheet below and enter the income tax due and the addition to tax computed on Form
allowable credit. 760C or Form 760F. If your return shows a refund on Line 9,
1. Fiduciary’s credit share ....... 1. ___________ the addition to tax will be deducted from your refund.
2. Carryover credit from COMPLETING THE RETURN
prior year .......................... 2. ___________
SIGNATURE: The return must be signed by the fiduciary or
3. Subtotal: Add Lines 1 and 2 . 3. ___________ an authorized officer of the organization receiving or having
4. Tax from Schedule 1, Line 4.4. ___________ custody or control of the management of the estate or trust.
5. Total of other credits claimed. 5. ___________ If two or more individuals act jointly as fiduciaries, the return
6. Subtract Line 5 from Line 4. 6. ___________ may be signed by any one of those individuals. You have not
filed a complete or legal return unless it has been signed.
7. Allowable 2022 Credit. Enter
the lesser of Line 3 or Line 6 TELEPHONE NUMBERS: Telephone numbers where you
here and on Sch. 1, Line 5(t)7. ___________ can be contacted between the hours of 8:30 a.m. and 5:00
8. Carryover to 2023 Form 770. p.m. are requested so that a representative of the Department
If Line 3 is larger than Line 7, can call you if there is a question about the return.
enter the difference .............. 8. ___________ See
WHEN AND WHERE TO FILE AND PAY THE TAX:
(u) Pass‑Through Entity Elective Tax Payment Section III, Filing Information, on Page 2 of these instructions
Credit. Enter on Line 5(u) the amount of the PTE for information on when and where to file and pay the tax.
refundable credit being claimed by the fiduciary.
Line 5: Total payments and credits. Enter the total of FORM 770 – PAGE 2
Lines 5(a) through 5(m) and 5o(iii) through 5(u).
SCHEDULE 2 – COMPUTATION OF VIRGINIA
Line 6: Balance due. If the total credits claimed on Line 5
are less than the tax reported on Line 4, subtract TAXABLE INCOME OF A NONRESIDENT
Line 5 from Line 4 and enter the result. See ESTATE OR TRUST
Section II of this instruction book for information On Lines 1 through 3, enter the distributable amount in
on when and where to file your return. You may Column A and the nondistributable amount in Column B.
file and pay electronically or a check for the
Line 1: Income from sources within Virginia. Enter
balance due, made payable to the Treasurer of
the income from property or businesses located
the city or county where the return will be filed,
in Virginia to the extent that the item of income is
must be enclosed with the return. A list of the
includable in the computation of federal taxable
filing addresses and phone numbers for each
income.
city or county is available at the back of these
instructions. Line 2: Federal deductions attributable to income
Line 7: Overpayment. If the total payments and credits from sources within Virginia. Enter the federal
claimed on Line 5 exceed the tax reported on Line deductions attributable to the income reported on
4, subtract Line 4 from Line 5 and enter the result Line 1 above.
on Line 7. Line 3: Net Virginia source income. Subtract the amount
Line 8: Amount of overpayment to be credited to 2023.
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reported on Line 2 from the income reported on INCOME
Line 1 and enter the result here.
Line 1: Interest on obligations of other states. Enter the
Line 4: Allocation of Virginia source income. Line 4 amount of interest, less related expenses to the extent
is used to report the allocation of income among that it was not deducted in determining federal taxable
the fiduciary and the beneficiaries. Income will income, on obligations of any state other than Virginia,
be allocated to the fiduciary only if the income is or of a political subdivision of any such state unless
accumulated during the taxable year and, as in it was created by a compact or agreement to which
the case of a complex trust, not all of the income Virginia is a party.
is distributed currently.
If the estate or trust received federally exempt dividend
Virginia source income must be allocated to each income from a regulated investment company (mutual
beneficiary based on his or her proportionate fund) that invested in obligations both taxable and
share of the federal distributable net income. exempt for Virginia purposes, the entire income
For example, if 50% of the estate’s or trust’s must be reported unless a statement from the fund is
federal distributable net income is allocated to a enclosed that:
beneficiary from Form 1041 or Schedule K-1, then
• details the dividends earned from the fund; and
50% of the net Virginia source income should be
allocated to that beneficiary. • summarizes the prorations between exempt and
taxable dividends (monthly breakdown preferred).
Complete the allocation schedule provided on
Lines 4(a) through 4(c) or enclose a schedule of EXAMPLE: A trust receives dividends from a
computation if more space is needed. mutual fund that invests in obligations of Virginia
and New York. The interest received from all of
Line 5: Deduction for distributions to beneficiaries. the obligations is exempt from federal taxation.
Enter the amount from Line 4a, Column 4 or Line
The fund provides the following statement:
4a, Column 2, whichever is less.
Dividend payments for 2022 $4,000
Line 6: Fiduciary’s share of Virginia source income.
% of income from NY obligations 60%
Sum of Line 4b, Column 4 or Line 4b, Column 2,
whichever is less, plus Line 4b, Column 5. % of income from VA obligations 40%
Line 7: Exemption from federal Form 1041. Enter the Based on this information, the trust may exclude
amount of the federal exemption allowed on 40% or $1,600 of the income from Virginia taxable
federal Form 1041. income. Therefore, the trust would make an
addition for only part of its mutual fund income,
Line 8: Income taxable to fiduciary. Subtract Line 7 from $2,400, and enclose the above statement to
Line 6. Enter the result here and on Schedule 1, support the partial addition.
Line 1 of Form 770.
Line 2: Income taxes of this state or any other
SCHEDULE 3 – FIDUCIARY’S MODIFICATIONS taxing jurisdiction. Enter the amount of income
Enter the fiduciary’s share of each modification on the tax imposed by this state or any other taxing
appropriate line. jurisdiction to the extent that such taxes were
deducted in computing federal taxable income.
Fixed Date Conformity Update
Line 3: Fixed Date Conformity Additions.
Virginia’s Fixed Date Conformity with the Internal a’s Fixed Date Conformity with the Internal
RevenueRevenue Code:Code: Revenue Code: Virginia’s date of conformity Revenue Code:a: BonusVirginia’sDepreciation.date of conformity For an explanation,
withwith the Internal Revenue Code (IRC) was the Internal Revenue Code (IRC)please was advancedsee the section from entitled, Fixed Date
December 31, 2020 to December 31, 2021, subjec t t to to Conformity Update . Enter the amount
certaincertainexceptions. Additional information about conformity exceptions. Additionalthat should informationbe added aboutto conformityfederal taxable
adjustments adjustments and other legislative changes required as and other legislative inco me changes based upon required the asrecomputation of
aa result of the 2022 General Assembly is provided in Tax result of the 2022allowableGeneraldepreciation.Assembly is provided .............ain___________Tax
BulletinBulletin 22-1 posted on the Department’s website at 22-1www..wwwposted on the Department’sb: Other FixedwebsiteDateatConformity Additions. If
tax.virginia.govtax.virginia.gov. . you are required to make any Other Fixed Date
VirginiaV will continue to deconform from the following: bonus irginia will continueConformity to deconformadditions fromlisted thein following:the Fixed bonusDate
depreciationdepreciation allowed for certain assets under federal law; allowed for certainConformity assets underUpdate federalfor law;2022 above, enter the
thethe five-year carryback of certain federal net operating loss five-year carrybacktotal amountof certainoffederalsuch additionsnet operatingon thislossline. Also,
(NOL)(NOL) deductions generated in the 2008 or 2009 taxable deductions generatedpleaseinenclosethe 2008aorschedule2009 taxableand explanation of
years;years; the federal income treatment of applicable high yield the federal incomesuchtreatmentadditions. of......................... applicable highb___________yield
discountdiscount obligations; and the federal income tax treatment obligations; andEnterthe federalthe totalincomeof Linestax treatmenta and b here and on
ofof cancellation of debt income realized in connection with cancellation of debtFormincome770, Schedulerealized in1,connectionLine 2FAwithand Schedule 3,
certain business debts.certain business debts. Line 3. ............................TOTAL ___________
PART I – ADDITIONS TO FEDERAL TAXABLE Line 4: Other additions to federal taxable income.
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Enter the following amounts, if applicable, and the United States is eligible for the subtraction. A
enclose a schedule of computation with the return: partial list of federal organizations and the Virginia
a. The amount of a lump sum distribution from tax status of income received from investments in
a qualified retirement plan, less the minimum securities issued by those entities is shown below.
distribution allowance, and any amount excluded The list is based on the Department’s analysis of
from federal taxable income solely by virtue of a federal and state law as applicable to selected
fiduciary’s election to use the averaging provisions organizations. For organizations not listed below,
under IRC § 402. additional information must be enclosed showing
that the interest is exempt from Virginia income tax.
b. The amount necessary to prevent the
ISSUING ORGANIZATION TAX STATUS
deduction of any item properly deductible by the
taxpayer in determining a tax under Virginia law Export-Import Bank of the United
prior to 1972. States ...................................................Exempt
Federal Home Loan Bank (FHLB) ........ Exempt
c. The amount that would be reported under
the installment method from certain dispositions Federal Home Loan Mortgage
of property. If, in a prior year, the taxpayer was Corporation (FHLMC) ..........................Taxable
allowed a subtraction for certain income from Federal Intermediate Credit Bank ........ Exempt
dealer dispositions of property made on or after Federal Land Bank ............................... Exempt
January 1, 2009, in the years following the year of Federal National Mortgage Association
disposition, the taxpayer is required to add back (FNMA) .................................................Taxable
the amount that would have been reported under Government National Mortgage
the installment method. Each disposition must be Association (GNMA) .............................Taxable
tracked separately for purposes of this adjustment. Inter-American Development Bank ......Taxable
d. Federal Partnership Income Addition - International Bank for Reconstruction
Income related to certain partnership adjustments & Development ....................................Taxable
that result from federal tax changes and other Student Loan Market Association
changes to federal taxable income must be added (SLMA) ................................................. Exempt
to the owner’s income tax return if the income was United States Savings Bonds ............... Exempt
not previously reported on the original Virginia United States Treasury Bills, Notes,
return. The amount of the addition is equal to the and Bonds ............................................ Exempt
income that was not included in Virginia taxable
income. When reporting this addition, enclose the If the estate or trust received income from a
partnership’s completed Form 502FED-1. regulated investment company (mutual fund) that
invested in obligations both taxable and exempt
e. Other income not included in federal taxable for Virginia purposes, the entire income must be
income, but subject to Vir ginia income tax. reported as taxable unless a statement from the
Line 5: Total Additions. Add Lines 1 through 4 and enter fund is enclosed that:
the result. • details the amount of income earned from the
PART II – SUBTRACTIONS FROM FEDERAL fund; and
TAXABLE INCOME • summarizes the prorations between exempt
Line 6: Income (interest, dividends or gains) from and taxable income (monthly breakdown
obligations or securities of the U.S. exempt preferred).
from state income taxes, but not exempt If the estate or trust is provided the information
from federal income taxes. Enter the income specified above, enter the exempt portion of income.
derived from obligations or the sale or exchange of A copy of the statement from the fund must be
obligations of the United States and on obligations enclosed with the return to support the subtraction.
or securities of any authority, commission or
instrumentality of the United States to the extent Line 7: Any state income tax refund or credit reported
that such income is exempt from state income as “other income” on federal Form 1041. Enter
any state income tax refund or credit included in
taxes. The amount entered here should include,
the estate’s or trust’s income on Form 1041.
but is not limited to, qualifying stocks, bonds,
treasury bills and treasury notes. Line 8: Fixed Date Conformity Subtractions.
Do not include interest on federal tax refunds, a: Bonus Depreciation. For an explanation,
equipment purchase contracts and other normal see the section entitled, Fixed Date Conformity
business transactions. Update. Enter the amount that should be
Only income received from direct obligations of
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subtracted from federal taxable income after January 1, 2019 but before December 31,
based upon the recomputation of allowable 2024.
depreciation. ..........................a ___________ In order for the subtraction to be claimed on the
b: Other Fixed Date Conformity Subtractions. investors’ income tax returns, the real estate
If you are required to make any Other Fixed Date investment trust in which they invest must be
Conformity subtractions listed in the Fixed Date certified by the Department as a Virginia real estate
Conformity Update for 2022 above, enter the total investment trust for the taxable year during which
amount of such subtractions on this line. Also, the investment was made. If the fund is approved, a
please enclose a schedule and explanation of 9-digit certification number will be provided. Enclose
such subtractions.. ................... b___________ a statement to the return including the “Certification
Enter the total of Lines a and b here and on Number” when claiming this subtraction.
Form 770 Schedule 1, Line 2FS and Schedule 3, No subtraction is allowed to an individual taxpayer:
Line 8. TOTAL ................. ___________ for an investment in a company that is owned
Line 9: Other subtractions from federal taxable or operated by a family member or affiliate of
income. Enter the following amounts, if applicable, the taxpayer; who claimed the subtraction for
and enclose a schedule of computation with the certain long-term capital gains or Venture Capital
return. Investments for the same investment; or who
claimed the Qualified Equity and Subordinated Debt
a. The amount of income on obligations or sales
Investments Tax Credit for the same investment.
and exchanges of obligations of this state or of
any political subdivision or instrumentality of this i. For taxable years beginning on or after January
state included in federal taxable income. 1, 2019, taxpayers may claim a subtraction for any
gain recognized from the taking of real property
b. The amount of wages or salaries eligible for
by condemnation proceedings.
the federal work opportunity tax credit which was
not deducted for federal purposes on account of j. Federal Partnership Income Subtraction ‑
the provisions of IRC § 280C(a). Income related to certain partnership adjustments
that result from federal tax changes and other
c. The amount of Tier 1 Railroad Retirement Act
changes to federal taxable income may be
benefits, Tier 2 vested dual benefits and other
subtracted from Virginia taxable income if the
Railroad Retirement Act benefits, and Railroad
income was previously reported on the owner’s
Unemployment Insurance Act benefits included
Virginia return. The amount of the subtraction
in federal taxable income.
is equal to the federal taxable income that was
d. Transitional modifications provided in Va. Code included in the owner’s Virginia original income tax
§ 58.1-315. return but should not have been reported. When
e. A deduction, not to exceed $4,000 per account claiming this subtraction, include a copy of the
per year, for the amount paid or contributed to a partnership’s Form 502FED-1.
prepaid tuition contract or a college savings trust k. Other income included in federal taxable
account entered into with the Virginia College income, but exempt from Virginia income tax.
Savings Plan. Do not include any amount that Line 10: Total subtractions. Add Lines 6 through 9 and
was deducted on the federal return. enter the total here.
f. Allows the income from dealer dispositions Line 11: Net Virginia modifications. Subtract Line 10 from
of property made on or after January 1, 2009, to Line 5 and enter the difference here and
be recognized under the installment method at
the election of the taxpayer, provided that (i) the If Line 5 is larger than Line 10,
election relating to the dealer disposition of the Enter the amount from Line 11 on Line 2(a)
property has been made on or before the due of Schedule 1. This is a net ADDITION.
date prescribed by law for filing the taxpayer’s If Line 5 is not larger than Line 10,
income tax return, and (ii) the dealer disposition Enter the amount from Line 11 on Line 2(b)
is in accordance with restrictions and conditions of Schedule 1. This is a net SUBTRACTION.
established by the Department.
Net Virginia Modifications Allocated to the Beneficiaries
g. To the extent included in federal taxable
income, any amount of gain or income recognized Each beneficiary must be provided a statement of income
by a taxpayer in connection with the Historic and modifications for use in completing the individual income
Rehabilitation Tax Credit is allowed as a subtraction tax return. See “Allocation of Income to Beneficiaries” in
on the Virginia return. Section II of these instructions for more information.
h. For taxable years beginning on and after SCHEDULE 4 – COMPUTATION OF THE CREDIT
January 1, 2019, taxpayers may claim a subtraction FOR TAX PAID TO ANOTHER STATE
for income attributable to an investment in a If a credit is being claimed for taxes paid by the fiduciary to
Virginia real estate investment trust made on or another state, complete Lines 1 through 7 of Schedule 4 on
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Form 770 to compute the allow able credit. See “CREDIT Line 7: Allowable credit.
FOR TAX PAID TO ANOTHER STATE” in Section IV of these Enter the smaller
Resident Estate or Trust:
instructions for more information. A complete copy of the amount from Line 3 or Line 6.
return filed with any state for which a credit is claimed must
be enclosed. If a credit is being claimed for taxes paid to more Nonresident Estate or Trust: Enter the smaller
than 1 other state, a separate computation must be enclosed amount from Line 4 or Line 6. Also enter this
for each state (following the format of Form 770, Schedule 4). amount on Line 5(d) of Schedule 1.
Line 1: Qualifying taxable income reported on another SCHEDULE 5 – BENEFICIARY’S INFORMATION
state’s return. (Schedule K‑1 Equivalent)
Resident Estate or Trust: Enter the total taxable GENERAL INFORMATION: Schedule 5 is used to report
income from the following categories that apply the beneficiary’s share of income, deductions, and credits and
to you, to the extent that the income was derived other items from a trust or a decedent’s estate. The fiduciary
from sources outside Virginia and the income was (or one of the joint fiduciaries) must prepare Schedule 5 for
subject to tax by both Virginia and another state: each beneficiary having a beneficial interest in the trust or
estate at any time during the taxable year. Copies of the
• Earned or business income;
schedule are required to be filed with Form 770. A copy
• Gain from the sale of any capital asset not must also be provided to each beneficiary by the fiduciary.
used in a trade or business, including a
residence; and LINE BY LINE INSTRUCTIONS
• Income on which corporation income tax was Complete the information in the sections at the top of
paid to a state that does not recognize the Schedule 5. If the return is for a period other than January
federal Schedule S Corporation election. 1 to December 31 of the taxable year shown on your return,
indicate the fiscal beginning and ending dates in the space
If nonqualifying income is included in the taxable
provided. The taxable period of your Virginia return must be
income of the other state, recompute the qualifying
the same as that of your federal return. It is important that
taxable income and qualifying tax liability with that
the names, addresses, Social Security Number and Federal
income removed.
Employer Identification Number (FEIN) are entered correctly.
Nonresident Estate or Trust: Enter the total Do NOT use the decedent’s social security number or the
taxable income to the extent that the income was preparer’s FEIN as the estate’s or trust’s FEIN.
taxed by the resident state (Arizona, California,
If the estate or trust has not received its FEIN, write “Applied
the District of Columbia, or Oregon). Qualifying
For” in the appropriate box and notify the
taxable income includes the total taxable income Department of
reported on the resident return, not just the income Taxation in writing at P. O. Box 1115, Richmond, VA 23218‑
derived from Virginia sources. 1115 as soon as the FEIN is received.
Line 2: Virginia taxable income. Enter the taxable Line 1: Federal Distributable Net Income
income from Schedule 1, Line 3 of Form 770. (a) Federal Taxable Income. Enter the
beneficiary’s share of federal taxable income
Line 3: Qualifying income tax paid to another state.
from Schedule 1, Line 1.
Enter the income tax paid to another state. Also
enter the name of the other state. (b) Beneficiary’s Federal Distribution
Note: If you are a resident estate or trust, ensure Percentage. Enter the beneficiary’s federal
distribution percentage (enter the result to 6
that only state income tax paid on earned, business,
decimal places).
and capital gain income is included on this line.
(c)
Line 4: Virginia income tax. Enter the tax from Estate or Trust Federal Distribution
Schedule 1, Line 4 of Form 770. Percentage. Enter the estate or trust federal
distribution percentage (enter the result to 6
Line 5: Allowable percentage for credit. decimal places).
Resident Estate or Trust: Divide Line 1 by Line 2, Line 2: Beneficiary’s Additions
and enter the result to 1 decimal place (example:
Enter on Lines 2a-2d as indicated on Schedule
10.5%). Do not enter more than 100%.
5 the beneficiary’s share of the Virginia additions
Nonresident Estate or Trust: Divide Line 2 by to federal taxable income.
Line 1, and enter the result to 1 decimal place
(example: 10.5%). Do not enter more than 100%. Line 2e Total Additions. Add Lines 2a through 2d.
Line 6: Resident Estate or Trust: Multiply Line 5 by Line 3: Beneficiary’s Subtractions
Line 4. Enter on Lines 3a-3d as indicated on Schedule 5
Nonresident Estate or Trust: Multiply Line 5 by the beneficiary’s share of the Virginia subtractions
Line 3. from federal taxable income.
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Line 3e Total Subtractions. Add Lines 3a through 3d.
Line 4: Net Virginia Modifications Subtract Line 3e from
Line 2e.
Line 5. Credit Allocation Information
Enter on Lines 5a-5o as indicated on Schedule 5
the beneficiary’s distributive share of tax credits.
Line 5p. Total Credits. Add Lines 5b through 5g and 5k
through 5o.
Line 6. Nonresident Beneficiary Information
(a) Virginia source income. If the beneficiary is
a nonresident, enter the Virginia source income.
(b) Virginia modifications as if a Virginia
resident. If the beneficiary is a nonresident, enter
the Virginia modifications as if a Virginia resident.
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2022 Income Tax Return Mailing Addresses and Locality Codes
You may mail your income tax return to your Commissioner of the Revenue at the address below or directly
to the Department of Taxation at the addresses listed at the bottom of the next page.
* DENOTES DIRECTOR OF FINANCE ** DENOTES DIRECTOR, DEPARTMENT OF TAX ADMINISTRATION
COUNTIES AND CITIES
Accomack County – 001 Charlottesville City ‑ 540 540-665-5681
P.O. Box 186, Accomac, VA 23301-0186 P.O. Box 2964, Charlottesville, VA 22902-2964 Fredericksburg City ‑ 630
757-787-5747 434-970-3160 P.O. Box 644, Fredericksburg, VA 22404
Albemarle County * ‑ 003 Chesapeake City ‑ 550 540-372-1004
Refund: P.O. Box 1498, Richmond, VA 23218-1498 P.O. Box 15285, Chesapeake, VA 23328-5285 Galax City* ‑ 640
Tax Due: P.O. Box 760, Richmond, VA 23218-0760 757-382-6736 Refund: P.O. Box 1498, Richmond, VA 23218-1498
434-296-5851 Chesterfield County - 041 Tax Due: P.O. Box 760, Richmond, VA 23218-0760
Alexandria City* ‑ 510 P.O. Box 124, Chesterfield, VA 23832 276-236-2528
Refund: P.O. Box 1498, Richmond, VA 23218-1498 804-748-1281 Giles County ‑ 071
Tax Due: P.O. Box 760, Richmond, VA 23218-0760 Clarke County ‑ 043 130 N. Main St., Pearisburg, VA 24134
703-746-4800 Refund: P.O. Box 1498, Richmond, VA 23218-1498 540-921-3321
Alleghany County ‑ 005 Tax Due: P.O. Box 760, Richmond, VA 23218-0760 Gloucester County ‑ 073
Refund: P.O. Box 1498, Richmond, VA 23218-1498 540-955-5108 6489 Main St., Suite 137, Gloucester, VA 23061
Tax Due: P.O. Box 760, Richmond, VA 23218-0760 Colonial Heights City ‑ 570 804-693-3451
540-863-6640 P.O. Box 3401, Colonial Heights, VA 23834 Goochland County ‑ 075
Amelia County ‑ 007 804-520-9280 P.O. Box 60, Goochland, VA 23063
P.O. Box 269, Amelia, VA 23002 Covington City ‑ 580 804-556-5807
804-561-2158 P.O. Drawer 58, Covington, VA 24426-0058 Grayson County ‑ 077
Amherst County ‑ 009 540-965-6350 P.O. Box 126, Independence, VA 24348
P.O. Box 719, Amherst, VA 24521 Craig County ‑ 045 276-773-2381
434-946-9310 P.O. Box 186, New Castle, VA 24127 Greene County ‑ 079
Appomattox County ‑ 011 540-864-6241 Refund: P.O. Box 1498, Richmond, VA 23218-1498
P.O. Box 125, Appomattox, VA 24522 Culpeper County ‑ 047 Tax Due: P.O. Box 760, Richmond, VA 23218-0760
434-352-7450 P.O. Box 1807, Culpeper, VA 22701 434-985-5211
Arlington County ‑ 013 540-727-3443 Greensville County ‑ 081
Refund: P.O. Box 1498, Richmond, VA 23218-1498 Cumberland County ‑ 049 1781 Greensville County Circle, Room 132,
Tax Due: P.O. Box 760, Richmond, VA 23218-0760 P.O. Box 77, Cumberland, VA 23040 Emporia, VA 23847
703-228-4017 804-492-4280 434-348-4227
Augusta County ‑ 015 Danville City ‑ 590 Halifax County ‑ 083
P.O. Box 959, Verona, VA 24482 P.O. Box 480, Danville, VA 24543 P.O. Box 1847, Halifax, VA 24558
540-245-5640 434-799-5145 434-476-3314
Bath County ‑ 017 Dickenson County ‑ 051 Hampton City ‑ 650
P.O. Box 130, Warm Springs, VA 24484 P.O. Box 1067, Clintwood, VA 24228 P.O. Box 636, Hampton, VA 23669-0636
540-839-7231 276-926-1646 757-727-6690
Bedford County ‑ 019 Dinwiddie County ‑ 053 Hanover County ‑ 085
122 E. Main St., Suite 103, Bedford, VA 24523 P.O. Box 104, Dinwiddie, VA 23841 P.O. Box 129, Hanover, VA 23069
540-586-7621 804-469-4500, Ext. 4 804-365-6129
Bland County ‑ 021 Emporia City ‑ 595 Harrisonburg City ‑ 660
P.O. Box 130, Bland, VA 24315 P.O. Box 956. Emporia, VA 23847 409 S Main St., Harrisonburg, VA 22801-3610
276-688-4291 434-634-5405 540-432-7704
Botetourt County ‑ 023 Essex County ‑ 057 Henrico County * ‑ 087
57 S. Center, Daleville, VA 24083 P.O. Box 879, Tappahannock, VA 22560 Refund: P.O. Box 1498, Richmond, VA 23218-1498
540-928-2050 804-443-4737 Tax Due: P.O. Box 760, Richmond, VA 23218-0760
Bristol City ‑ 520 Fairfax City ‑ 600 804-501-4263
497 Cumberland St., Room 101, Bristol, VA 24201 Rm. 224, City Hall, 10455 Armstrong St. Henry County ‑ 089
276-645-7316 Fairfax, VA 22030 P.O. Box 1077, Collinsville, VA 24078-1077
Brunswick County ‑ 025 703-385-7885 276-634-4690
P.O. Box 669, Lawrenceville, VA 23868 Fairfax County ** ‑ 059 Highland County ‑ 091
434-848-2313 Refund: P.O. Box 1498, Richmond, VA 23218-1498 P.O. Box 148, Monterey, VA 24465
Buchanan County ‑ 027 Tax Due: P.O. Box 760, Richmond, VA 23218-0760 540-468-2142
P.O. Box 1042, Grundy, VA 24614 703-222-8234 Hopewell City ‑ 670
276-935-6542 Falls Church City ‑ 610 P.O. Box 1604, Hopewell, VA 23860
Buckingham County ‑ 029 300 Park Ave., # 202W 804-541-2237
P.O. Box 138, Buckingham, VA 23921 Falls Church, VA 22046-3301 Isle of Wight County ‑ 093
434-969-4972 703-248-5065 P.O. Box 107, Isle of Wight, VA 23397-0107
Buena Vista City ‑ 530 Fauquier County ‑ 061 757-365-6301
2039 Sycamore Ave., Buena Vista, VA 24416 P.O. Box 149, Warrenton, VA. 23218-0760 James City County ‑ 095
540-261-8610 540-422-8163 P.O. Box 283, Williamsburg, VA 23187
Campbell County ‑ 031 Floyd County ‑ 063 757-253-6695
P.O. Box 66, Rustburg, VA 24588 Refund: P.O. Box 1498, Richmond, VA 23218-1498 King and Queen County ‑ 097
434-332-9518 Tax Due: P.O. Box 760, Richmond, VA 23218-0760 P.O. Box 178, King & Queen Courthouse, VA 23085
Caroline County ‑ 033 540-745-9345 804-785-5976
P.O. Box 819, Bowling Green, VA 22427 Fluvanna County ‑ 065 King George County ‑ 099
804-633-4059 Refund: P.O. Box 1498, Richmond, VA 23218-1498 10459 Courthouse Dr., Suite 101,
Carroll County ‑ 035 Tax Due: P.O. Box 760, Richmond, VA 23218-0760 King George, VA 22485-3865
Refund: P.O. Box 1498, Richmond, VA 23218-1498 434-591-1940 540-775-4664
Tax Due: P.O. Box 760, Richmond, VA 23218-0760 Franklin City ‑ 620 King William County ‑ 101
276-730-3080 207 West Second Ave., Franklin, VA 23851 Refund: P.O. Box 1498, Richmond, VA 23218-1498
Charles City County ‑ 036 757-562-8552 Tax Due: P.O. Box 760, Richmond, VA 23218-0760
Refund: P.O. Box 1498, Richmond, VA 23218-1498 Franklin County ‑ 067 804-769-4941
Tax Due: P.O. Box 760, Richmond, VA 23218-0760 1255 Franklin St., Ste. 102, Rocky Mt., VA 24151 Lancaster County ‑ 103
804-652-2161 540-483-3083 8311 Mary Ball Rd., Room 203, Lancaster, VA 22503
Charlotte County ‑ 037 Frederick County ‑ 069 804-462-7920
P.O. Box 308, Charlotte C.H., VA 23923 Refund: P.O. Box 1498, Richmond, VA 23218-1498
434-542-5546 Tax Due: P.O. Box 760, Richmond, VA 23218-0760
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COUNTIES and CITIES (CONTINUED)
Lee County ‑ 105 Nottoway County ‑ 135 Salem City ‑ 775
P.O. Box 96, Jonesville, VA 24263 P.O. Box 5, Nottoway, VA 23955 P.O. Box 869, Salem, VA 24153-0869
276-346-7722 434-645-9317 540-375-3019
Lexington City ‑ 678 Orange County ‑ 137 Scott County ‑ 169
300 E Washington St, Ste. 103, Lexington, VA 24450 P.O. Box 389, Orange, VA 22960 190 Beech Street, Suite 206, Gate City, VA 24251
540-462-3701 540-672-4441 276-386-7692
Loudoun County ‑ 107 Page County ‑ 139 Shenandoah County ‑ 171
Refund: P.O. Box 1498, Richmond, VA 23218-1498 103 S. Court St., Suite C, Luray, VA 22835 Refund: P.O. Box 1498, Richmond, VA 23218-1498
Tax Due: P.O. Box 760, Richmond, VA 23218-0760 540-743-3840 Tax Due: P.O. Box 760, Richmond, VA 23218-0760
703-777-0260 Patrick County ‑ 141 540-459-6170
Louisa County ‑ 109 Refund: P.O. Box 1498, Richmond, VA 23218-1498 Smyth County ‑ 173
1 Woolfolk Ave., Suite 203, Louisa, VA 23093 Tax Due: P.O. Box 760, Richmond, VA 23218-0760 P. O. Box 985, Marion, VA. 24354
540-967-3432 276-694-7131 276-782-4040
Lunenburg County ‑ 111 Petersburg City ‑ 730 Southampton County ‑ 175
11512 Courthouse Rd., Ste. 101, Lunenburg, VA 23952 144 Sycamore St., Petersburg, VA 23803 Refund: P.O. Box 1498, Richmond, VA 23218-1498
434-696-2516 804-733-2315 Tax Due: P.O. Box 760, Richmond, VA 23218-0760
Lynchburg City ‑ 680 Pittsylvania County ‑ 143 757-653-3030
P.O. Box 858, Lynchburg, VA 24505-0858 P.O. Box 272 ,Chatham, VA 24531-0272 Spotsylvania County ‑ 177
434-455-3870 434-432-7940 P.O. Box 175, Spotsylvania, VA 22553
Madison County ‑ 113 Poquoson City ‑ 735 540-507-3058
P.O. Box 56, Madison, VA 22727 500 City Hall Ave., Poquoson, VA 23662 Stafford County - 179
540-948-4421 757-868-3020 P.O. Box 98, Stafford, VA 22555-0098
Manassas City ‑ 683 Portsmouth City ‑ 740 540-658-4132
Refund: P.O. Box 1498, Richmond, VA 23218-1498 801 Crawford St., Portsmouth, VA 23704 Staunton City ‑ 790
Tax Due: P.O. Box 760, Richmond, VA 23218-0760 757-393-8773 P.O. Box 4, Staunton, VA 24402-0004
703-257-8222 Powhatan County ‑ 145 540-332-3829
Manassas Park City ‑ 685 3834 Old Buckingham Rd., Ste. C, Powhatan, VA Suffolk City - 800
Refund: P.O. Box 1498, Richmond, VA 23218-1498 23139 P.O. Box 1459, Suffolk, VA 23439-1459
Tax Due: P.O. Box 760, Richmond, VA 23218-0760 804-598-5616 757-514-4260
703-335-8825 Prince Edward County ‑ 147 Surry County ‑ 181
Martinsville City ‑ 690 P.O. Box 446, Farmville, VA 23901 P.O. Box 35, Surry, VA 23883
Refund: P.O. Box 1498, Richmond, VA 23218-1498 434-392-3231 757-294-5225
Tax Due: P.O. Box 760, Richmond, VA 23218-0760 Prince George County ‑ 149 Sussex County ‑ 183
276-403-5131 P.O. Box 155, Prince George, VA 23875 P.O. Box 1398, Sussex, VA 23884
Mathews County ‑ 115 804-722-8740 434-246-1030
Refund: P.O. Box 1498, Richmond, VA 23218-1498 Prince William County* ‑ 153 Tazewell County ‑ 185
Tax Due: P.O. Box 760, Richmond, VA 23218-0760 Refund: P.O. Box 1498, Richmond, VA 23218-1498 135 Court St.,Suite 301, Tazewell, VA 24651-0020
804-725-7168 Tax Due: P.O. Box 760, Richmond, VA 23218-0760 276-385-1235
Mecklenburg County ‑ 117 703-792-6710 Virginia Beach City ‑ 810
P.O. Box 360, Boydton, VA 23917 Pulaski County ‑ 155 2401 Courthouse Dr., Bldg.1,
434-738-6191, Ext. 4272 52 West Main Street, Ste. 200, Pulaski, VA 24301 Virginia Beach, VA 23456
Middlesex County ‑ 119 540-980-7750 757-385-4483
Refund: P.O. Box 1498, Richmond, VA 23218-1498 Radford City ‑ 750 Warren County ‑ 187
Tax Due: P.O. Box 760, Richmond, VA 23218-0760 Refund: P.O. Box 1498, Richmond, VA 23218-1498 P.O. Box 1775, Front Royal, VA 22630-0038
804-758-5331 Tax Due: P.O. Box 760, Richmond, VA 23218-0760 540-635-2651
Montgomery County ‑ 121 540-731-3613 Washington County ‑ 191
755 Roanoke St., Ste. 1-A, Christiansburg, VA 24073 Rappahannock County ‑ 157 One Government Center Place, Ste. C,
540-382-5710 P.O. Box 115, Washington, VA 22747 Abingdon, VA 24210
Nelson County ‑ 125 540-675-5370 276-676-6270
P.O. Box 246, Lovingston, VA 22949 Richmond City ‑ 760 Waynesboro City ‑ 820
434-263-7070 Refund: P.O. Box 1498, Richmond, VA 23218-1498 503 W. Main St., Room 107, Waynesboro, VA 22980
New Kent County ‑ 127 Tax Due: P.O. Box 760, Richmond, VA 23218-0760 540-942-6612
Refund: P.O. Box 1498, Richmond, VA 23218-1498 804-646-5195 Westmoreland County ‑ 193
Tax Due: P.O. Box 760, Richmond, VA 23218-0760 Richmond County ‑ 159 P.O. Box 68, Montross, VA 22520
804-966-9610 P.O. Box 366, Warsaw, VA 22572 804-493-0113
Newport News City ‑ 700 804-333-3722 Williamsburg City ‑ 830
2400 Washington Ave., Newport News, VA 23607 Roanoke City ‑ 770 P.O. Box 245, Williamsburg, VA 23187
757-926-8653 P.O. Box 718, Roanoke, VA 24004 757-220-6150
Norfolk City ‑ 710 540-853-6543 Winchester City ‑ 840
P.O. Box 2260, Norfolk, VA 23501-2260 Roanoke County ‑ 161 21 South Kent St., Ste. 100, Winchester, VA 22601
757-664-7885 P.O. Box 21709, Roanoke, VA 24018 540-667-1815
Northampton County ‑ 131 540-772-2049 Wise County ‑ 195
P.O. Box 65, Eastville, VA 23347 Rockbridge County ‑ 163 P.O. Box 1278, Wise, VA 24293
757-678-0446 P.O. Box 1160, Lexington, VA 24450 276-328-3556
Northumberland County ‑ 133 540-463-3431 Wythe County ‑ 197
P.O. Box 309, Heathsville, VA 22473 Rockingham County ‑ 165 225 S. 4th Street, Room 101, Wytheville, VA 24382
804-580-4600 20 E. Gay St., Harrisonburg, VA 22802 276-223-6015
Norton City ‑ 720 540-564-3000 York County ‑ 199
P.O. Box 347, Norton, VA 24273 Russell County ‑ 167 P.O. Box 90, Yorktown, VA 23690-0090
276-679-0031 137 Highland Dr., Lebanon, VA 24266 757-890-3381
276-889-8018
You may mail your income tax return directly to the Department of Taxation at the
addresses listed below or to your Commissioner of the Revenue at the above address.
REFUND RETURNS TAX DUE RETURNS
Virginia Department of Taxation Virginia Department of Taxation
P.O. Box 1498 P.O. Box 760
Richmond, VA 23218‑1498 Richmond, VA 23218‑0760
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