What is the tax rate for estates and trusts?

In Virginia, the tax rate for estates and trusts depends on the amount of income. Estates and trusts must pay income taxes on the first $1,000 of income, and the amount owed is based on the Virginia estate tax table. For any income above $1,000, the tax rate is 6%. There is also an additional tax on the income of estates and trusts that exceed $12,000, which is 3% of the excess. This additional tax does not apply to trusts with a single beneficiary, or to estates whose income is distributed to multiple beneficiaries. Estate and trust tax returns must be filed by April 15th each year, or by the 15th day of the fourth month following the end of the estate or trust’s taxable year. Additionally, an extension may be granted if the return cannot be filed by the due date. However, even if the extension is granted, the recipient may still owe taxes on the income they receive in that calendar year. As a general rule, Virginia does not offer any deductions or credits to lower the amount of taxes owed by estates or trusts. Unless the beneficiary qualifies for a specific deduction or credit, they must pay the stated income tax rate on all the income they receive.

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What is the tax rate for estates and trusts?

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