topic Virginia Form 502 PTET Number and Types of owners Error! in State tax filing

Virginia Form 502 PTET Number and Types of owners Error!

merge2022 — Mon, 23 Feb 2026 10:27:54 GMT

According to the recently published "Virginia Elective Pass-Through Entity Tax 2022 Form 502PTET Package":

https://www.tax.virginia.gov/sites/default/files/taxforms/corporation-and-pass-through-entity-tax/2022/502ptet-package-2022.pdf

In form 502 PTET -> Number and Types of Owners:
Line a – Number of Individual and Fiduciary Nonresident Owners
Enter the total number of owners that are not residents of Virginia. If the residency status is not known, enter the number of owners whose address of record is not in Virginia.
Line b – Number of Individual and Fiduciary Resident Owners
Enter the total number of owners that are residents of Virginia.

Turbotax business desktop 2022 doesn't allow "Line a: Number of Individual and Fiduciary Nonresident Owners" to be set to 0. I am preparing Virginia PTET return for a single member LLC with active s-corp election. Where "Line a" should be total number of nonresident owners "zero in my case" and "line b" should be total number of resident owners "one in my case". However, Turbotax errors and doesn't accept line a to be zero.

Could you please confirm if this is a bug in Turbotax Business Desktop 2022 or if I am missing something here?

Re: Virginia Form 502 PTET Number and Types of owners Error!

AliciaP1 — Wed, 25 Jan 2023 21:21:09 GMT

It is likely the box for the box is checked for the Form 502, Pass-Through Entity Return of Income and Return of Nonresident Withholding Tax in error. To verify this and check the correct box please follow these steps in TurboTax Business:

Within your return click on the State Taxes tab near the top of the screen.
Click Continue and Edit then proceed through the entry questions while verifying each of the answers.
On the Reviewing Your Return screen, scroll down within the worksheet to Part II - Tax Year Information
Ensure that the box Form 502 PTET, Pass-Through Entity Elective Income Tax Form is checked and Continue through the review.

Re: Virginia Form 502 PTET Number and Types of owners Error!

merge2022 — Thu, 26 Jan 2023 04:02:15 GMT

Thanks for your response. I have done exactly what you've outlined multiple times, before and after I have received your response:

"Form 502 PTET, Pass-Through Entity Elective Income Tax Form is for sure checked."

Form 502 PTET doesn't pass the review and when I switch from "step-to-step" view to "forms" view, I can see an error icon next to Form 502 PTET (Not Done). The field that is causing the error "which is shown in light red" in the form is: "line a" under Number and Types of Owners:

line a: Number of individual and fiduciary nonresident owners = 0

The error goes away, and the review passes only when I overwrite "line a" to be = 1 instead of 0 which is a wrong input in my case as I do not have any individual and fiduciary nonresident owners. I still cannot manage to pass the review as you have outlined with "line a: Number of individual and fiduciary nonresident owners = 0".

Re: Virginia Form 502 PTET Number and Types of owners Error!

PatriciaV — Thu, 26 Jan 2023 14:43:22 GMT

Have you tried leaving that box blank instead of entering zero? If you have no nonresident owners, perhaps that question can be skipped.

Re: Virginia Form 502 PTET Number and Types of owners Error!

merge2022 — Thu, 26 Jan 2023 18:25:02 GMT

Yes, I tried that already and it didn't work. I even tried to increase the number of resident owner on "line b" to 2 while "line a" is 0 and blank, and that didn't work either.

I just tried again now what you've suggested: to keep "line a" blank with no entry/number, then I got this error when I ran the review:

Check This Entry

Form 502 PTET: Line a: Number of individual and fiduciary nonresident owners: The total number of owners must be entered for electronic filing.

Re: Virginia Form 502 PTET Number and Types of owners Error!

merge2022 — Thu, 26 Jan 2023 18:49:06 GMT

I have done a lot of trouble shooting over the past couple of days. I have even totally deleted my state return and started over from scratch multiple time. Still having the same error. It seems that TurboTax Business Desktop 2022 mistakenly treats "line a" as total number of owners instead of just nonresident owners.

Could you please confirm that "line a" should be total number of nonresident owners only and not total number of owners "resident and nonresident" as what TurboTax is currently imposing.

Re: Virginia Form 502 PTET Number and Types of owners Error!

AliciaP1 — Fri, 27 Jan 2023 21:24:46 GMT

There may be another erroneous box checked. On the Business Info tab, in the Shareholder Information section, make sure the Check this box if this shareholder lives in a different state than entered above box is not checked.

If it is not checked, then it would be helpful to have a TurboTax ".tax2022" file that is experiencing this issue.

You can send us a “diagnostic” file that has your “numbers” but not your personal information.  If you would like to do this, here are the instructions:

At the top menu in the black line at the top of the page go to Online.

From the menu, select Send Tax File to Agent.
You will see a message explaining what the diagnostic copy is.  Click Send and then you will get a Token number.
Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.

@merge2022

Re: Virginia Form 502 PTET Number and Types of owners Error!

merge2022 — Sun, 29 Jan 2023 18:25:15 GMT

I have confirmed that on the Business Info tab, in the Shareholder Information section, the check box "Check this box if this shareholder lives in a different state than entered above box" is not checked.

I have just sent you a diagnostic file. Diagnostic Token number: 1056750

The state return in the shared diagnostic file does not pass state review, due to the fact that:
"Line a: Number of individual and fiduciary nonresident owners" is not set. I kept it blank as you suggested in your previous reply.

If you set "Line a" to 1, the return will pass the state review and the return will be ready for filing. So the question again: what is the accurate value of "Line a" in my case: LLC with single owner/member with active S-Corp election?

Note: I have deleted from 502 and 502A as both are not needed in my case. Moreover, from 502 should not be submitted in the return as it would cancel the 502PTET tax election.

Re: Virginia Form 502 PTET Number and Types of owners Error!

Differential — Sun, 29 Jan 2023 23:57:25 GMT

I am having the EXACT same problem as you! The state return does not pass state review, due to the fact that:
"Line a: Number of individual and fiduciary nonresident owners" is not set - I don't have any non (Virginia) resident owners and TurboTax will net accept a 0 value.

I will appreciate if you can share the solution to this problem which TurboTax (Agent) shares with you

Thanks

Re: Virginia Form 502 PTET Number and Types of owners Error!

PatriciaV — Tue, 31 Jan 2023 20:10:21 GMT

@Differential
Would you be willing to provide a diagnostic copy of your business return? If so, please follow the instructions posted a few days ago in this thread. We would like to test the challenges you've faced completing your return and hopefully provide a resolution. Thank you.

Re: Virginia Form 502 PTET Number and Types of owners Error!

brobbinsvb — Tue, 31 Jan 2023 20:55:20 GMT

I am having the same issue as well;

Here is my token # - 1058588

Re: Virginia Form 502 PTET Number and Types of owners Error!

Differential — Wed, 01 Feb 2023 15:29:06 GMT

Per your request, I have created a diagnostic copy of my business return. The diagnostic number is 1059054

Thank you

Re: Virginia Form 502 PTET Number and Types of owners Error!

chillestcow — Mon, 06 Feb 2023 02:25:17 GMT

Hi there, I am also having the same problem. I went ahead and submitted my return and my token # is 1063232

Re: Virginia Form 502 PTET Number and Types of owners Error!

Differential — Mon, 06 Feb 2023 18:43:31 GMT

Any update from you on how to overcome this error?

Thanks

Re: Virginia Form 502 PTET Number and Types of owners Error!

cholmer — Wed, 08 Feb 2023 19:55:45 GMT

Per your request, I have created a diagnostic copy of my business return. The diagnostic number is 1065706

Thank You

Re: Virginia Form 502 PTET Number and Types of owners Error!

chillestcow — Wed, 08 Feb 2023 22:14:01 GMT

Negative here. I am still waiting for a response. Has anyone else on here heard anything?

Re: Virginia Form 502 PTET Number and Types of owners Error!

Differential — Fri, 10 Feb 2023 00:30:44 GMT

Nope! Been waiting for over 10 days after having submitted my copy of the return to TurboTax

Re: Virginia Form 502 PTET Number and Types of owners Error!

Learn101 — Fri, 10 Feb 2023 06:29:08 GMT

I am experiencing the same exact error. Kindly provide a solution asap.

Re: Virginia Form 502 PTET Number and Types of owners Error!

Learn101 — Sun, 12 Feb 2023 00:10:45 GMT

I got in touch with Turbotax "tax experts" over the phone to see if they could offer a solution. The person I spoke with suggested that I enter the same number for "nonresident" owners as I have for the resident owners. She said this is a "non-issue issue" and can easily be explained to VA tax authorities if they question it. However, since partnerships are pass-through entities and the info will be reported on K1s and through personal tax returns, this should not be an issue. I took the advise and moved forward with e-filling my returns. Will post again if there is an issue or if I hear from VA tax authorities.

Re: Virginia Form 502 PTET Number and Types of owners Error!

Differential — Mon, 13 Feb 2023 19:08:12 GMT

Thanks for the update. Seems rather odd TurboTax will not address what is clearly a bug in their software. With your workaround, did you file Form 502PTET or the Form 502? I am guessing it would be Form 502PTET. If the VA tax authorities question the entry for non-residents, will explain it as a bug in the s/w?

Thanks