TurboTax Online is telling me that my individual Virginia tax return is not available for e-file due to the fact that I have a Pass Through Entity Tax (PTET) credit. The error message states, "The return includes a Pass-Through Entity Elective Tax Payment credit. Required attachment Schedule VK-1 is not supported for electronic filing." See screenshot below:
The error message appears to be correct about the fact that the VK-1 form is required to be attached to the return when claiming a PTET credit, per Virginia's Schedule CR instructions:
"Pass-Through Entity Elective Tax Payment Credit: Enclose Form 502 Schedule VK-1."
https://www.tax.virginia.gov/sites/default/files/taxforms/individual-income-tax/2023/schedule-cr-2023.pdf
However, I couldn't find any documentation on Virginia's website stating that a VK-1 form can't be attached to a return when e-filing.
Is there really no way for me to just upload my VK-1 to TurboTax and have TurboTax include it as an attachment to the e-filing? If not, can this functionality be added? I'd really like to avoid having to print out and physically mail my return in because I'm sure I'll mess something up. One of the reasons I paid for the Premium edition of TurboTax Online is to make filing convenient and somewhat idiot proof. This scenario seems like something that should be supported.
I'm surprised no one answered the question. I file VA and also MD. I learned the hard way that TurboTax does not send the K-1 attachments. For MD, I have to always file by paper and attach the K-1. Now you and I both have to do the same for VA.
Has anyone helped you with this error yet? I have used TT for over 15 years and never had a problem until this PTET VA problem.
No, I reached out to TurboTax support and they confirmed that electronic filing for the Virginia PTET tax is not currently supported because there's currently no mechanism in TurboTax Online to upload the individual's VK-1 form. I asked for them to open a feature request to implement support for electronic filing for the Virginia PTET tax credit, but I did not get any confirmation from TurboTax support about if or when this functionality will be supported.
I ended up having to file my Virginia return by mail and manually included my VK-1 in the packet. Fingers crossed that it doesn't get rejected.
I would imagine that there are hundreds, if not thousands, of other Virginia small business owners who use TurboTax and are encountering this issue with claiming the PTET credit. Hopefully TurboTax adds support for it soon.