Article: 50460
Overview
if you need to report an underpayment of estimated tax on your Virginia (VA) state return, you must complete the VA – Underpayment of Estimated Tax form. This guide walks you through the steps to locate and fill out the form and explains when and why it is required.
What is Underpayment of Estimated Tax?
Underpayment of estimated tax occurs when a taxpayer does not pay enough tax throughout the year—either through withholding, quarterly estimated tax payments, or a combination of both—to meet their tax liability.
Virginia law requires individuals to make estimated tax payments if they expect to owe more than a certain amount in tax after subtracting any withholding or refundable credits. If you underpay during the year, the state may assess a penalty unless certain exceptions are met.
Who Needs to Include This Form?
You may need to include the VA – Underpayment of Estimated Tax form with your Virginia return if any of the following apply:
- You are self-employed or have income not subject to withholding (e.g., rental income, investments, gig work).
- You had insufficient withholding from wages or retirement income during the year.
- You owe more than $150 in tax after subtracting withholding and credits.
- You made estimated payments, but they were not timely or were underpaid relative to your income.
Including this form helps determine whether a penalty applies and, in some cases, may allow you to reduce or eliminate the penalty by calculating exceptions.
How to Report
- Navigate to the State Taxes section on the left-hand side of the screen.
- Click the link: I’d like to see the forms I’ve filled out or search for a form.
- In the dropdown menu, select Virginia.
- Click on the Other tab.
- Click on Underpayment of Estimated Tax to open the form.
- Enter all applicable information.
- Click Save once complete.
Additional Resources
For further information see: https://www.tax.virginia.gov/sites/default/files/vatax-pdf/2024-760-instructions.pdf