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Return includes Virginia PTET payment credit not supported for e-filling?

My federal/state returns are ready for filing, and I am receiving this message in TT premier Desktop:

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Not Eligible for Electronic Filing, Reason for e-file ineligibility:

The return includes a Pass-Through Entity Elective Tax-Payment credit. Required attachment Schedule VK-1 is not supported for electronic filing.

These rules are set by the Department of Taxation.

The good news is you can still print your Virginia return and file it by mail.

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Could you please confirm that I can not e-file and I have to print and mail my return including VK-1 form. I am wondering if e-filing in this situation is just currently not supported and TT is planning to release a new version that will allow e-filing? Or if these kind of state returns that should include VK-1 will always have to be printed and mailed?

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1 Reply
MaryK4
Expert Alumni

Return includes Virginia PTET payment credit not supported for e-filling?

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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