760C: Underpayment of Estimated Tax by Individuals, Estates and Trusts (2025)

Virginia · Virginia Tax · Used for tax years 2025

Virginia Form 760C calculates underpayments of estimated income tax for 2025 by individuals, estates, and trusts. It accounts for payments and withholding, checks exceptions, and calculates any addition to tax. Attach it to Form 760, 763, 760PY, or 770.

Who files this form

Form 760C is used by individuals, estates, and trusts to compute underpayments of Virginia estimated income tax and any addition to tax for 2025.

  • You are not required to file Form 760C if your 2025 income tax liability after the spouse tax adjustment and tax credits is $150 or less.
  • If the underpayments on Part I, Line 14 total $150 or less, excluding overpayments, stop there. You are not subject to an addition to tax.
  • If those underpayments total more than $150, continue to Part II to check the exceptions.

When it's due

For tax year 2025, the form lists these estimated tax installment due dates:

  • May 1, 2025
  • June 15, 2025
  • September 15, 2025
  • January 15, 2026

For the 2025 addition-to-tax calculation, Part III counts days through the payment date or May 1, 2026, whichever is earlier. This is a calculation cutoff, not a separately stated filing deadline for Form 760C.

What you'll need

Have these records and details available to complete the form:

  • Your 2025 and 2024 income tax liability after the spouse tax adjustment and tax credits.
  • Income tax withheld for each installment period.
  • Any overpayment credit from your 2024 income tax return.
  • Estimated tax payment amounts and dates, including late payments.
  • Your name and Social Security number or FEIN, plus your spouse’s name and Social Security number if filing jointly. Estates and trusts also provide the fiduciary’s name and title.

If completing the income-based exception worksheets, you will also need Virginia adjusted gross income, deductions, child and dependent care expenses, exemptions, and Virginia tax information for the periods shown on the form.

How to file

Attach Form 760C to Form 760, 763, 760PY, or 770. The supplied form does not provide a mailing address or e-file instructions.

To complete the calculation:

  1. Complete Part I to determine your underpayments. For Lines 6 through 14, finish each line across all columns before moving to the next line.
  2. If required by Line 14, complete Part II to check the exceptions.
  3. Complete Part III to calculate any addition to tax. For an installment covered by an exception, write “Exception” and its number on Line 20, skip Lines 21 through 23, and enter “0” on Line 24.
  4. Total Line 24 on Line 25. Also enter that total on the “Addition to Tax” line of your income tax return.

Fiscal-year filers must enter their beginning and ending dates and check the fiscal-year box.

Common mistakes

  • Putting late payments on Line 10. This line is for timely payments only.
  • Entering too much on Line 12. Do not enter more than the underpayment in any column. Start with the earliest payment recorded in the Late Payment/Overpayment Table.
  • Including overpayments in the Line 14 threshold test. Add only the underpayments when checking whether the total is $150 or less.
  • Completing one entire column at a time in Part I. For Lines 6 through 14, complete each line across all columns first.
  • Applying Exception 3 or 4 to the fourth installment. The form says these exceptions do not apply to that period.

Questions people ask

How does the form determine the amount used to calculate installments?

Part I compares 90% of your 2025 income tax liability with your 2024 income tax liability, both after the spouse tax adjustment and tax credits. Line 4 uses the smaller amount, which Line 7 divides by the number of installment periods reported on Line 5.

Can an exception eliminate an addition to tax for an installment?

Yes. Part II lists four exceptions. If an exception is met for an installment, Part III tells you to identify the exception on Line 20 and enter zero on Line 24 for that period.

Do estates and trusts use different periods for the income-based exceptions?

Yes. For the Exception 3 worksheet, the form tells estates and trusts to use end dates of March 31, April 30, and July 31. Exception 4 uses 3-, 4-, and 7-month periods for estates and trusts instead of 4-, 5-, and 8-month periods.

What rate does the form use to calculate the addition to tax?

Part III, Line 23 uses a daily rate of .00025, shown as 9% per year. Line 24 multiplies the underpayment by the result from Line 23.

Official sources

All versions of 760C