Virginia Underpayment of Estimated tax by Farmers and Fisherman

Underpayment of Estimated tax by Farmers and Fisherman
2023 Form 760F - Underpayment of Virginia Estimated Tax by Farmers, Fishermen, and Merchant Seamen
760F	
2023	
	

Underpayment of Virginia Estimated Tax by
Farmers, Fishermen, and Merchant Seamen
Enclose this form with Form 760, 763, 760PY, or 770

Calendar Year 2023 or taxable year beginning

*VA760F123888*

, 2023 and ending

,

First Name, Middle Initial and Last Name (of Both if Joint) - OR - Name of Estate or Trust

Your Social Security Number or FEIN

If Estate or Trust, Name and Title of Fiduciary

(For Office Use)

.

•
•

Do You Have to File Form 760F?
•	 If your Virginia adjusted gross income (VAGI) is below the filing threshold, you are not required to complete this form because you
are not required to file an income tax return.
•	 If your Virginia income tax liability is $150 or less after subtracting your Spouse Tax Adjustment and other tax credits (except withholding,
estimated, and extension payments), you do not have to complete this form; you do not owe an addition to your tax.
•	 If you meet both of the following tests, you do not have to complete this form; you do not owe an addition to your tax.
		

Test 1 –	Your gross income from self-employment as a farmer, fisherman, and/or being a merchant seaman is at least two-thirds
of your annual gross income for the taxable year, and

		

Test 2 –	You filed Form 760, Form 760PY, Form 763, or Form 770, and paid the entire tax due by March 1, 2024.

PART I – Exceptions Which Void the Addition to Tax
•	 If you underpaid your tax, determine if you meet one of the exceptions on Line 1 or Line 2. If you meet either exception, complete the
appropriate line on this form and enclose this form with your return. If you do not meet either exception, then proceed to PART II to
compute the addition to your tax.
1. Exception 1 – 2022 Virginia Income Tax
(Form 760 filers use the net tax amount from Line 19)

1.

2. Exception 2 – Estimated Tax Based on 2022 Income Using 2023 Rates and Exemptions

2.

PART II – How to Compute Your Underpayment
3. Enter the Amount of Your 2023 Virginia Income Tax Liability After the Spouse Tax
Adjustment and Tax Credits. See instructions.
(If $150 or less, you are not required to file Form 760F)

3.

4. Enter 66 2/3% (.667) of the Amount on Line 3

4.

5. Enter 2022 Income Tax Liability After the Spouse Tax Adjustment and Tax Credits

5.

6. Enter the Amount from Line 4 or Line 5, Whichever is Less

6.

7. Enter the Amount of Tax Withheld and/or the Amount of Estimated Tax Paid or Credited by
January 15, 2024
8. Underpayment of Estimated Tax
(Subtract the amount on Line 7 from the amount on Line 6)

7.
8.

PART III – How to Compute the Addition to Tax
9. Amount of Underpayment From Line 8

9.

10. Number of Days After January 15, 2024, Through the Date the Amount on Line 9 Was Paid or
May 1, 2024, Whichever is Earlier
(If May 1 is earlier, enter 107)

10.

11. Multiply Line 10 by the Daily Interest Rate of .00027 (10% per annum)

11.

12. Addition to Tax Balance Due – Multiply the Amount on Line 9 by Line 11
(See instructions on back)

12.

Va. Dept. Of Taxation 2601036-W Rev. 12/23

%

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2023 Form 760F Instructions
Definition of Farmer, Fisherman, or Merchant Seaman
For the purpose of estimating Virginia income tax, "a farmer,
fisherman, or merchant seaman," is an individual having an
estimated Virginia gross income from self-employed farming,
fishing, or being a merchant seaman for the taxable year which
is at least 662/3% of the individual's total estimated Virginia gross
income for the taxable year.
Purpose of This Form
If you are an individual taxpayer who is a qualified farmer, fisherman,
or merchant seaman, you may use this form to determine whether
your income tax was sufficiently paid throughout the year by
withholding and/or by timely filed installment payments of estimated
income taxes. If not, you may owe an addition to tax computed
at the applicable daily interest rate. Form 760C is the equivalent
form for individual taxpayers who are not farmers, fishermen, or
merchant seamen.
If your Virginia adjusted gross income (VAGI) is below the filing
threshold, you are not required to complete this form because you
are not required to file an income tax return. You must file a Virginia
individual income tax return if your VAGI is equal to or greater than
the filing threshold for your filing status. The filing threshold amount
for a single individual is also applicable to dependent children. The
filing threshold amounts are as follows:
		
And Your VAGI is Equal to
	 Filing Status is:	
or Greater than:
	 Single	
$11,950
	 Married, filing joint return	
$23,900
	 Married, filing separate return	
$11,950
If your Virginia income tax liability is $150 or less after subtracting
your Spouse Tax Adjustment and other tax credits (except
withholding, estimated, and extension payments), you do not have
to complete this form; you do not owe an addition to tax.
If you meet both of the following tests, do not file this form because
you do not owe an addition to tax.
Test 1.	 Your gross income from self-employment as a farmer,
fisherman, and/or being a merchant seaman is at least
two-thirds of your annual gross income for the taxable
year, and
Test 2.	 You filed Form 760, Form 760PY, Form 763, or Form 770,
and paid the entire tax due by March 1, 2024.
If you do not meet Test 1, use Form 760C.
Due Date
If the due date falls on a Saturday, Sunday, or legal holiday, then
the return may be filed and the tax may be paid without penalty or
interest on the next succeeding business day.
Assistance
For assistance, contact the Commissioner of the Revenue, Director
of Finance, or Director of Tax Administration for the locality in
which you reside or the Department of Taxation, P.O. Box 1115,
Richmond, VA 23218-1115, or 804-367-8031. You can obtain most
Virginia income tax forms at www.tax.virginia.gov.
Part I - Exceptions Which Void the Addition to Tax
If you underpaid your tax, complete this section to determine if
you meet one of the exceptions on Line 1 or Line 2. If you meet
either exception, complete the appropriate line on this form. If you
do not meet either exception, complete PART III to compute the
addition to tax.
Line 1.	 Exception 1: You qualify if:
	
(1)	 your withholding and any timely estimated tax
payments for the 2023 taxable year equal or exceed

the tax (minus any Spouse Tax Adjustment, Tax
Credit for Low Income Individuals, Credit for Tax
Paid to Another State, and the tax credits from
Schedule CR) on your return for the 2022 taxable
year; AND
	
(2)	 You filed a 2022 Virginia return showing a tax liability;
AND
	
(3)	 the return was for a period of twelve months.
Income tax withheld during the year may be considered paid on
the required installment date.
Line 2.	 Exception 2: You qualify if your withholding and any timely
estimated income tax payments (Line 7) for the 2023
Taxable Year equal or exceed the amount that would be
due by computing your 2022 tax using the 2023 income
tax rates and personal exemptions.
Part lI - How to Compute Your Underpayment
Line 3.	 To compute your 2023 Virginia income tax liability:
	
A.	 Form 760 – Subtract from Form 760, Line 19 the total
of Lines 23 through 25, and enter the result; or
	
B.	 Form 760PY – Subtract from Form 760PY, Line 19 the
total of Lines 23 through 25, and enter the result; or
	
C.	Form 763 – Subtract from Form 763, Line 19 the total
of Lines 23 through 25, and enter the result; or
	
D.	Form 770 – Subtract from Form 770, Line 4 the total
of the credits included on Line 5 and enter the result.
	NOTE: You are not required to file Form 760F if the amount
on Line 3 is $150 or less.
Line 4.	 Enter 662/3% (.667) of the amount on Line 3.
Line 5.	 Enter the amount of your 2022 income tax liability after
Spouse Tax Adjustment and tax credits.
Line 6.	 Enter the amount from Line 4 or Line 5, whichever is less.
Line 7.	 Enter the total amount of income tax withheld and any
estimated tax paid or credited by January 15, 2024.
	
NOTE: Fiscal year taxpayers – If you filed your return on
a fiscal year basis, change the dates to correspond to
your fiscal year.
Line 8.	 Underpayment of Estimated Tax – Subtract the amount
on Line 7 from the amount on Line 6.
Part III - How to Compute the Addition to Tax
Line 9.	 If Line 8 is an underpayment, enter the amount here.
Line 10.	Compute the number of days that the underpayment on
Line 9 was late.
NOTE: Fiscal year taxpayers – If you filed your return on
a fiscal year basis, compute the number of days based
on the due date of your income tax return.
Line 11.	Multiply Line 10 by the daily rate of .00027 (10% per
annum).
	
NOTE: Fiscal year taxpayers - If you filed your return on
a fiscal year basis, change the interest rate to correspond
to the daily interest rate applicable to the due date of your
income tax return.
Line 12.	Addition to Tax – Multiply the amount on Line 9 by Line 11.
Enter the amount from Line 12 on the Addition to Tax line on your
income tax return. Farmers, fishermen, and merchant seamen fill
in the oval on the front of Form 760 OR check the box on front the
760PY or 763. If filing Form 770, check the Form 760F box on the
front of the return and enter the amount of addition to tax on Line 11
of Form 770. You may write one check for payment of the addition
to tax and any amount you may owe on your income tax return.