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Turbotax suggests "You are not required to file a State Return"
I am a US citizen living abroad with bona fide status. I am an owner of S-corp, filing K-1, 2555 and 1116 forms.
When I select "Virginia" State for filing my state return, Turbotax suggests "You are not required to file a State Return. Lucky you - foreign state does not have a personal income tax. This means you are not required to file a state return. Select Skip State to continue to Review". I read some articles that it is not that straightforward for my state, Virginia.
Please suggest if I shall follow the recommendation of Turbotax and not file a state retrun.
Thank you
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State tax filing
You may have to file a Virginia income tax return if you S-Corp produces income in Virginia.
You must file an income tax return in Virginia if:
- you are a resident of Virginia, part-year resident, or a nonresident, and
- you are required to file a federal income tax return, and
- you have Virginia adjusted gross income equal to or greater than $11,950 is single or married filing separately or $23,900 if married filing jointly.
See: Who Must File.
TurboTax generates the "You are not required to file a State Return" message because it does not know where to assign some types of income for nonresidents unless you tell it. For example, K-1s, rentals or royalties.
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