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Level 2
posted May 10, 2021 1:37:24 AM

Turbotax suggests "You are not required to file a State Return"

I am a US citizen living abroad with bona fide status.  I am an owner of S-corp, filing K-1, 2555 and 1116 forms.

When I select "Virginia" State for filing my state return, Turbotax suggests "You are not required to file a State Return.  Lucky you - foreign state does not have a personal income tax. This means you are not required to file a state return. Select Skip State to continue to Review".  I read some articles that it is not that straightforward for my state, Virginia. 

 

Please suggest if I shall follow the recommendation of Turbotax and not file a state retrun.

 

Thank you

0 1 424
1 Best answer
Expert Alumni
May 10, 2021 7:14:12 AM

You may have to file a Virginia income tax return if you S-Corp produces income in Virginia. 

 

You must file an income tax return in Virginia if:

  • you are a resident of Virginia, part-year resident, or a nonresident, and 
  • you are required to file a federal income tax return, and
  • you have Virginia adjusted gross income equal to or greater than $11,950 is single or married filing separately or $23,900 if married filing jointly.

See: Who Must File.

 

TurboTax generates the "You are not required to file a State Return" message because it does not know where to assign some types of income for nonresidents unless you tell it. For example, K-1s, rentals or royalties.

1 Replies
Expert Alumni
May 10, 2021 7:14:12 AM

You may have to file a Virginia income tax return if you S-Corp produces income in Virginia. 

 

You must file an income tax return in Virginia if:

  • you are a resident of Virginia, part-year resident, or a nonresident, and 
  • you are required to file a federal income tax return, and
  • you have Virginia adjusted gross income equal to or greater than $11,950 is single or married filing separately or $23,900 if married filing jointly.

See: Who Must File.

 

TurboTax generates the "You are not required to file a State Return" message because it does not know where to assign some types of income for nonresidents unless you tell it. For example, K-1s, rentals or royalties.