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Level 3
posted Jan 25, 2023 4:07:49 PM

How doe we enter negative number (loss) in Form 502 PTET, Section I

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?

0 23 2650
23 Replies
Expert Alumni
Jan 26, 2023 5:58:06 AM

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).

Level 3
Jan 26, 2023 11:44:58 AM

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? 

 

 

Expert Alumni
Jan 26, 2023 7:56:04 PM

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. 

Level 3
Jan 26, 2023 8:10:18 PM

I entered the negative number with a minus sign and it gave me an error!

Expert Alumni
Jan 29, 2023 6:38:33 AM

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

Level 3
Jan 29, 2023 4:08:42 PM

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

 

Expert Alumni
Jan 31, 2023 11:35:32 AM

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."

 

@Differential

Level 3
Feb 1, 2023 7:23:27 AM

I did try leaving the box blank (for number of non resident owners) and that did not work!

Expert Alumni
Feb 2, 2023 3:55:45 PM

There is a known issue in TurboTax Business regarding the VA 502PTET form.  You can clear the nonresident owner information by following these steps:

 

  1. Within your tax return use the Forms icon to switch to Forms mode
  2. Scroll down in the left-hand menu and click on Form 502, PTET
  3. Scroll down to Section I - Income
  4. Use the + to the left of each highlighted red box under Column A Nonresident Owners
  5. In the pop-up window, check the box at the top Check this box to NOT print this supporting statement
  6. Repeat steps 4 & 5 for each red box
  7. Go back to Step-by-Step mode with the icon at the top of the screen and continue your review of your returns

@Differential

Level 3
Feb 2, 2023 4:22:18 PM

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

New Member
Feb 9, 2023 10:23:44 AM

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.

New Member
Feb 9, 2023 10:24:33 AM

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.

Level 3
Feb 9, 2023 4:31:38 PM

I have not heard back from TurboTax - still waiting for a solution!

Intuit Alumni
Feb 21, 2023 8:14:44 AM

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 

Level 1
Feb 24, 2023 5:14:01 PM

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

 

 

 

Expert Alumni
Feb 28, 2023 12:44:36 PM

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. 

 

@brobbinsvb 

Level 3
Mar 1, 2023 1:14:20 PM

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)

Expert Alumni
Mar 1, 2023 1:42:32 PM

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 

New Member
Apr 12, 2023 10:28:40 AM

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!

Expert Alumni
Apr 12, 2023 11:40:32 AM

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. 

 

  1. Within your tax return using the Forms icon to switch to Forms mode
  2. Scroll down in the left-hand menu and click on Form 502, PTET
  3. Scroll down to Section I - Income
  4. Use the + to the left of each highlighted red box under Column A Nonresident Owners
  5. In the pop-up window, check the box at the top Check this box to NOT print this supporting statement
  6. Repeat steps 4 & 5 for each red box
  7. Go back to Step-by-Step mode with the icon at the top of the screen and continue your review of your returns

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:

  1. Sign in to TurboTax and open or continue your return, if you haven't already.
  2. Select Tax Tools from the left menu, then delete the State.
  3. Answer Yes to confirm.

 

How to add a State:

  1. Sign in to TurboTax.
  2. Now select Add a state (this reopens your return) ...
  3. Select State from the left menu.
  4. On the Let's get your state taxes done right screen, select Continue and follow the instructions.

@jjwomack5 

 

New Member
Apr 12, 2023 4:01:09 PM

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.  

Expert Alumni
Apr 16, 2023 1:48:27 PM

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.

 

@jjwomack5 

Level 1
Sep 5, 2023 3:00:23 PM

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.