You entered the necessary information from part 1 when you entered the federal K-1. VA laws require the allocation of Virginia modifications and Virginia taxable income to beneficiaries based on their respective share of the distributable net income of the estate or trust - this is Schedule 5 of the federal Fiduciary Form 770. Lines 2 and 3 are the state additions and subtractions which you took care of on the state return. Form 770 is filed by the fiduciary and reports the total trust income and deductions. Schedule 5 is the reconciliation and what each beneficiary reports on their personal tax returns.
Line 1 is Federal Distributable Net Income, which should match the information on your federal K-1. The beneficiary and trust percentages are not required for your tax return, so they are not entered. That information is required for the Form 770 which is filed by the fiduciary. From the VA 770 instructions:
(a) Federal Taxable Income. Enter the beneficiary's share of federal taxable income from Schedule 1, Line 1 (Form 770).
(b) Beneficiary's Federal Distribution Percentage. Enter the beneficiary's federal distribution percentage (enter the result to 6 decimal places).
(c) Estate or Trust Federal Distribution Percentage. Enter the estate or trust federal distribution percentage (enter the result to 6 decimal places).
Line 2 - your state additions
Line 3 - your state subtractions
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