MaryK4
Expert Alumni

State tax filing

As of now, you will have to mail the return, and there is no indication that this will change this year-- however, because e-file is faster, safer, and easier than paper filing, I am quite sure Virginia will find a way to change the requirements so that efile is available in the future.

 

Legislation enacted by the 2022 General Assembly  establishes a new Virginia elective pass-through entity  (PTE) tax. Beginning with taxable year 2021, the new law  also allows taxpayers to claim a credit in proportion to their  ownership interest in the PTE for certain taxes paid by the  PTE. Not all taxes paid by a PTE are eligible for the credit.  To be an eligible PTE tax, the tax must have been paid by a PTE under the law of another state that is substantially  similar to Virginia’s elective PTE tax law. See Tax Bulletin  22-6.

 

A separate computation and related documentation must be submitted for each state for which a credit is claimed using Schedule OSC.

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