Virginia Form 502 PTET Number and Types of owners Error!

[cholmer]

This has solved my issue as I no longer get hung up there in a loop. However, I have already filed via the VA Tax website since the corporation qualified to use the 500ez form. (https://www.business.tax.virginia.gov/tax-eforms/500ez.php#)

[ScottV1]

I sent my file Token number is 1085446.   I have updated my file but the system is still trying to force me to pay entity level tax to e-file.   I am a single member sub S resident owner.  Have already deposited state taxes at the personal level.  When will this be fixed????

[ScottV1]

The link in your post does not work.   I am still unable to file my return, TT is trying to force me to pay entity level tax ?   Any updates on the fix for this?

[BrittanyS]

The issue was listed as fixed as of 02/24/2023.  If you are still having issues you and the 502A form does not apply, follow the steps to delete the 502A form from your return.:

1. In the upper right corner of your screen, right corner Click Forms
2. Select 502A on the left-hand side
3. Click Delete (Bottom of your screen)
4. In the upper right corner of your screen, click Step-by-Step
5. Complete the return

@ScottV1 

[ScottV1]

The issue is not form 502A.   I have an error saying Form 502, PTET (Not Done)   The error says.... PTIT Election Box to file form 502 PTET, you much check this box to certify the PTE's eligibility, consent or owner, and election to pay VA income tax at the entity level for the taxable year.     I am not electing to pay tax at the entity level, i am a VA resident I have never done this.    I just sent the file token #1085504  Please let me know when this can be fixed or if there is a work around.   Thanks!

[BrittanyS]

You are receiving the warning because The General Assembly passed legislation allowing Pass-Through Entities to elect to pay their tax on a business (entity) level at a rate of 5.75 % versus on the owner's personal level for tax years 2021-2025.  The legislation provides a corresponding refundable income tax credit for tax years 2021-2025.  This allows the owner to pass the taxes back off to the business versus having to pay them on their personal return.  

However, you are not required to take the election.  Can you verify if you are receiving the warning and can continue past the election, or does it put you in a continuous loop?

@ScottV1 

[ScottV1]

I am receiving the warning or error that I have not completed the election.  I can not get the return to file without making an election to pay at the entity level.

[BrittanyS]

An update has occurred that should fix the issue you are having.  To fix you will want to do an update.  To complete the update in TurboTax Business Desktop, follow these steps:

1.  Click Online
2. Click Check for Updates
3. Run Update
4. Click File
5. Click Remove State Return
6. Start a new state return
7. Make Sure the first option is selected (see screenshot)

Continue through the return; you may receive a notification when you get to the review section:

If this is the only notification you receive, you can bypass the notification by clicking File on the top panel.  

If you have any other issues, please reply to this thread.

@ScottV1 

[Tax4Life]

We are seeing a similar issue when attempting to submit our VA 502 Partnership return.  When I attempt to efile the state return, it keeps sending me to a review screen of my VA 502 form.  I noticed on the Turbotax website that two of the forms in my return are unsupported. Virginia Partnerships Forms Availability (intuit.com)

  When will the Schedule VK-1 Consolidated and VA-8435P forms be available for e-filing ? 

[PatriciaV]

What are you asked to review on VA-502? The original post question has been resolved.

Schedule VK-1 Consolidated is available to print and file by mail but is not supported in TurboTax Business for e-filing. This form is required only if you have more than 10 owners.

Form VA-8435P is for your records only. Instructions for the form say it should NOT be sent to the Viriginia Department of Taxation or the IRS.

@Tax4Life 

[Tax4Life]

Thank you for the info. 

We are still unable to efile the VA state return. We keep getting the same message: 

"But before you e-file, we need a little more information that we didn't need earlier.  "

Then it proceeds to force us to review the VAP Viriginia Pass-Through Entity Information Worksheet.

What do we need to do to complete the efiling for the VA return?

[AliciaP1]

You need to scroll through the worksheet and find a red box or a box with red numbers in it and make a correction.  It's most likely you don't have a box checked that needs to be checked.  In that case, there will be a line or lines with empty red boxes and you need to make the correct selection for your business.

@Tax4Life 

[tmd0831]

I also experience the same issue as @Tax4Life, on the 502 (not 502 PETE), the check error keeps returning to the "VAP Virginia Pass-Through Entity Information Worksheet". There are NO red boxes, checkmarks or lines anywhere on the form, in either step-by-step view or Forms view. 

[PatriciaV]

We are unable to reproduce the experience you have seen. It would be helpful to have a TurboTax ".tax2022" file to test further. If you would be willing to send us a “diagnostic” file that has your “numbers” but not your personal information, please follow these instructions: 

Open your return and go to Online in the TurboTax header. 

1. Choose Send Tax File to Agent.
2. You will see a message explaining what the diagnostic copy is.  Click Send on this screen and wait for the Token number to appear. 
3. Reply to this thread with your Token number and tag (@) the agent requesting the token from you.  

This diagnostic copy (numbers only; no personal info) of your tax file will allow us to see the same experience you are having. If we are able to determine the cause, we'll reply here and provide you with a resolution.

@Tax4Life 

@tmd0831