TurboTax is not allowing entry of a negative number - a loss - in Form 502 PTET
I am attempting to complete VA state taxes (for 2022) in TurboTax for my S-Corp and have a loss for 2022. I need to enter a negative number in Section I, Owners share of taxable income (Line 1) and then a loss in Section II Line6, and 7. TurboTax comes back with an error:"Form 502 PTET Sec II Line 7. Tax invalid for State Electronic Filing. Negative numbers are not allowed in this field"
Can I not file VA State Tax Return electronically?
Although the instructions for Virginia Form 502 PTET Section 1 Line 1 indicate that you may enter a loss (negative number), Section 2 should result in zero tax (negative number multiplied by 5.75% tax rate for 2022). TurboTax will calculate this number for you. Please use Forms Mode to verify the calculation is correct in Section 2. Overriding any calculated number will prevent you from efiling your return.
Note that Form 502 PTET will be available for efiling on 1/27/2023 (see this table).
TurboTax is not allowing entry of a negative number (loss) in Form PTET Section 1 Line 1. It keeps giving an error when I enter the loss amount as a negative number. How do I overcome this situation?
It depends. How are you entering the negative number? Are you entering with parenthesis or with a minus sign in front of the number? Try with the minus sign in front of the number if you haven't done so already.
I entered the negative number with a minus sign and it gave me an error!
The line one instructions to form 502PTET reference Virginia taxable income. If your income is negative, then it would not be taxable so it would be acceptable to enter zero or no income.
Here is a link to the form and instructions: Form 502PTET
Per your suggestion I entered 0 for taxable income and managed to get past the problem. Thanks!
TurboTax does not allow the entry of 0 for individual and fiduciary non resident owners in the 502PTET form "Number and Types of Owners" in the "Pass-Through Entity Information" Section.
I don't have any non (VA) resident owners and cannot get past this error
Any tip on how to get past this error?
Thank you
While the specific instructions for Virginia Form 502 PTET do not specify how to report zero non-resident owners, you might try leaving that box blank. This is the usual method when the answer is "null."
I did try leaving the box blank (for number of non resident owners) and that did not work!
There is a known issue in TurboTax Business regarding the VA 502PTET form. You can clear the nonresident owner information by following these steps:
I followed the steps you indicated but to no avail - it brings me back to forcing an entry for non resident owners. I have uploaded my TurboTax diagnostic file - Token# 1060542
Thanks
I have the same issue. I'm trying to efile my Virginia taxes and it keeps forcing me back to have an entry for non residents owners. I enter 0 because I have none and it shows an error. I leave it blank and it also shows an error. Please advise. Thanks.
I have the same issue. I'm trying to efile my Virginia taxes and it keeps forcing me back to have an entry for non residents owners. I enter 0 because I have none and it shows an error. I leave it blank and it also shows an error. Please advise. Thanks.
I have not heard back from TurboTax - still waiting for a solution!
This issue has been resolved in an update.
Please follow the instructions here to manually update the Turbo Tax software and try to file again.
If you are using the Turbo Tax Business, please click here for instructions. @Differential
I did see that Form 502, PTET number and type of owners line a was fixed and now accepts 0.
But I am not seeing this issue fixed with the latest software upgrade where having negative numbers leaves the form incomplete.
I completed the forms using step-by-step and in doing so I end up with negative numbers in the following locations -
Distributive or Pro Rata Income and Deductions Line 1 (example) -100
Allocation and Apportionment line 6 (example) -100
Virginia Subtractions line 14 (example) 50
Virginia Subtractions line 18 (example) 50
Section 1 Income Line 1 (example) -100 (line is Red highlighted)
Section 1 Income Line 3 (example) -100 (line is Red highlighted)
Section 1 Income Line 4 (example) 50
Section 1 Income Line 5 (example) -150 (line is Red highlighted)
Section 2 Tax Calculation Line 6 (example) -150
Section 2 Tax Calculation Line 7 (example) -9 (line is Red highlighted)
Trying to determine why this is auto-populating with numbers it does not accept
Go to the forms mode in your return and see if you edit can the red highlighted areas of the Form 502, PTET and change the negative values to 0. Chances are, this hasn't been addressed in a Turbo Tax update.
Yes, this issue has not been fully addressed in TT. You can now enter a negative amount in Line 1 Total taxable Income amounts but you have to enter 0 in Section I - Owners share of taxable income (TT does not allow a negative number)
I have all updates applied and I'm still not allowed to have a negative amount in Section II Line 7. VA Tax form instructions don't indicate that having a negative # is invalid. Please advise!
It depends on whether or not you are filing a nonresident or resident return.
Although the instructions for Virginia Form 502 PTET Section 1 Line 1 indicate that you may enter a loss (negative number), Section 2 should result in zero tax (a negative number multiplied by 5.75% tax rate for 2022). TurboTax will calculate this number for you. Please use Forms Mode to verify the calculation is correct in Section 2. Overriding any calculated number will prevent you from filing your return.
Here are suggestions for non-resident filers.
If the above does not work, delete the Form in the Tools menu, and reenter the State. See instructions below:
Here's how to Delete and Start over:
How to add a State:
Thank you for the quick response!
BTW - I'm using TT Business 2022 Desktop version.
This is not for Non-Resident. Section I.5 equals a negative # under column B. Then in Section II.6 TT has that same negative # which is then multiplied by 5.75 on II.7 which comes out to be a negative #. As you said, I can override it but then I can't file it.
I started my taxes several weeks ago and ran into this. So, I waited for TT updates hoping it would correct the error. I restarted today by removing State and starting over and I'm stuck in the same spot with this negative number.
This is a calculation error in that you pay no tax when you report a loss. Enter zero in Section I -- Income, Line 1 Owners' share of taxable income, Column B Resident Owners. This will allow you to complete and e-file your return.
Thank you! That got me past the negative number problem, but for some reason, TT still will not let me efile. I seem to be stuck in an endless loop of review. I tell it to efile, and it starts to send it, and then, comes back and says, "We need stuff that we didn't need before", and shows me screens that have no red fields on them. I see no errors, and when I right click and tell it to show the next error, it goes to the company name (which came from the Federal Return), or some other field - complete nonsense. I am at my wit's end, I have been fighting with this for months (obviously). Any suggestions would be appreciated. Thank you again for the suggestion.