500A: Multistate Corporation Allocation and Apportionment of Income (2024)
Virginia · Virginia Tax · Used for tax years 2024
Virginia Schedule 500A calculates a corporation’s allocation and apportionment of income for 2024. It reports the apportionment method and factors, income apportioned to Virginia, and dividends allocated to Virginia to determine income subject to Virginia tax on Form 500.
Who files this form
Virginia Schedule 500A is used for corporation allocation and apportionment of income. The form provides single-factor methods for specified types of businesses and a multi-factor method with double-weighted sales.
It includes checkboxes for consolidated or combined returns and certain companies using special apportionment rules. The form does not state a general filing threshold.
What you'll need
Have the following information available to complete the schedule:
- The corporation’s name as shown on Form 500 and its FEIN.
- Form 500, including Virginia taxable income from Line 7.
- Total and Virginia amounts for the applicable apportionment factors. The multi-factor method uses property, payroll, and sales.
- Total dividends, dividends allocated to Virginia, and nonapportionable investment function income or loss.
Certified companies conducting business in certain disadvantaged localities that elect modified apportionment must enclose Schedule 500AP.
Manufacturers electing the modified method must enter the beginning date of the election year and complete the annual wage and employment certification.
Questions people ask
Which businesses are listed for the single-factor computation?
Section B, Line 1 lists motor carriers, financial corporations, construction corporations, railway companies, retail companies, debt buyers, manufacturers that elected the modified method in Section A, and certain enterprise data center operations.
How does the double-weighted sales calculation work?
Multiply the sales factor on Line 2(c) by 2 and enter it on Line 2(d). Add the property factor, payroll factor, and double-weighted sales factor on Line 2(e). Divide that sum by 4, reduced by the number of factors, if any, having no denominator, to complete Line 2(f).
What must manufacturers certify each year for the modified method?
They must certify that average weekly wages of full-time employees are greater than the lower of the state or local average weekly wages for their industry. They must also certify that the average annual number of full-time employees is at least 90% of base-year employment.
Where does the final income amount go on Form 500?
Add income apportioned to Virginia on Line 3(h) and dividends allocated to Virginia on Line 3(i). Enter the result on Schedule 500A, Line 3(j), and Form 500, Line 8(a).