765: Unified Nonresident Individual Income Tax Return (2024)
Virginia · Virginia Tax · Used for tax years 2024
Virginia Form 765 is a unified nonresident individual income tax return, also called a composite return, for qualified owners of a pass-through entity. It reports participants’ combined Virginia income, additions, subtractions, tax, payments, and credits to determine the amount o
Who files this form
Form 765 is Virginia’s unified nonresident individual income tax return, also called a composite return, for qualified owners of a pass-through entity (PTE).
The PTE files on behalf of participating owners. The signer must declare that the PTE has made a diligent effort to ensure those owners qualify and holds a signed statement from each owner authorizing it to act on their behalf and accepting the filing terms and conditions.
The supplied form does not explain the owner qualification rules or state when filing is required.
What you'll need
- Participants’ Schedules VK-1: Part II uses these to summarize income and Virginia additions and subtractions.
- Schedule L: Complete and enclose it with the return.
- Signed owner statements: The PTE must keep a statement from each participating owner authorizing it to act on the owner’s behalf and accepting the filing terms and conditions.
- Payment information: Have the amounts of estimated tax paid for 2024, any prior-year overpayment credited to 2024, and any extension payment from Form 770IP.
- Schedule CR, if claiming credits: Enclose it to support the credits on Part I, Line 9.
- Form 760C, if applicable: Part I, Line 15(a), uses the addition-to-tax amount from this form. Form 765 also has a box to indicate that Form 760C is enclosed.
- Schedule ADJS, if needed: Use it to report additions beyond the two entry spaces or subtractions beyond the three entry spaces in Part II.
How to file
- Enter the PTE’s legal name, address, FEIN, and Virginia account number. Check any applicable boxes for an address change, legal name change, or amended return.
- Complete Part II using participating owners’ Schedules VK-1. Carry the income, additions, and subtractions totals to Part I.
- Complete Part I to report taxable income, tax, payments, credits, and any applicable addition to tax, penalty, and interest.
- Complete and enclose Schedule L and any other applicable schedules. Have an owner or authorized representative sign and date the return and provide the requested contact information.
- If Part I, Line 16, shows an amount owed, enclose payment.
The mailing address printed on the form is:
Virginia Department of Taxation
P.O. Box 760
Richmond, VA 23218-0760
The supplied form does not provide e-filing directions.
Common mistakes
- Leaving out Schedule L: The form specifically says to complete and enclose it.
- Missing a prior-year credit: Include any prior-year overpayment credited to 2024 with estimated tax paid on Part I, Line 7.
- Leaving out extra modifications: Use Schedule ADJS for additions beyond the two entry spaces or subtractions beyond the three entry spaces. Include all amounts in the appropriate total and check the corresponding box.
- Skipping the instructions for Part II: The form says to see the instructions before completing those lines. Those instructions are not included in the supplied text.
- Omitting payment: The form says to enclose payment when Line 16 shows an amount owed.
Questions people ask
What does “aggregate” mean in Part II?
It means the sum of participating owners’ amounts from Schedules VK-1 for the referenced line item.
How are the apportioned additions and subtractions calculated?
Multiply the amount in Column A by the Virginia apportionment percentage on Part II, Line 2, to calculate Column B.
Can an overpayment be applied to next year’s estimated tax?
Yes. Enter the amount you want credited to next year’s estimated tax on Part I, Line 13.
Who signs the return?
An owner or authorized representative of the PTE signs the declaration. The form also has a separate preparer signature area.
Can Virginia discuss the return with my preparer?
Yes. Check the authorization box on the form to allow the Department of Taxation to discuss the return with your preparer.