502 FED-2: Virginia Partnership-Level Federal Adjustments Report (2025)
Virginia · Virginia Tax · Used for tax years 2025
Virginia Form 502FED-2 is the Partnership-Level Federal Adjustments Report used for the partnership pays election. It calculates adjusted taxable income, Virginia tax, penalties, and interest when a partnership elects to pay tax on behalf of its partners instead of filing Virgini
Who files this form
Use Form 502FED-2 if the partnership elects to pay Virginia income tax due on partnership-level federal adjustments on behalf of its partners instead of filing Virginia amended returns.
The form calculates adjusted taxable income, tax, penalties, and interest for this election. Form 502FED-1 must also be completed and filed.
When it's due
For the tax year 2025 form:
- Form 502FED-1 must be completed and filed within 90 days of the final determination date for partnership-level federal adjustments.
- Form 502FED-2 is also due within 90 days of the final determination date.
What you'll need
Have these forms and details ready:
- Form 502FED-1: Use the same partnership name and enter the change in Virginia taxable income from Line 6, Column B.
- Partnership FEIN.
- Partner information: Counts and distributive shares of adjustments for resident direct partners, nonresident direct partners, corporate and tax-exempt partners, and tiered partners.
- Virginia sourcing and exclusions: Amounts attributable to Virginia, tiered partner shares sourced outside Virginia, and excluded tiered partner shares.
- Signature information: The State Partnership Representative’s signature, printed name, title, date, and phone number. The form also has fields for preparer information.
- Form 502V: Required for payment if Form 502FED-2, Section II, Line 22 shows an amount due.
How to file
Check the box consenting to pay tax at the partnership level, complete the calculations, and sign the declaration.
If Section II, Line 22 shows an amount due, make payment on Form 502V. Payments must be made electronically unless you have an approved waiver.
The supplied form does not give a mailing address or explain how to submit Form 502FED-2 itself.
Common mistakes
- Leaving the consent box unchecked. The form warns that this makes the partnership-level payment election invalid. Tax would instead be calculated and paid using the Default Push-Out Method.
- Not using Form 502V for an amount due. The payment note requires Form 502V when Section II, Line 22 shows a balance due.
- Making a nonelectronic payment without an approved waiver. Payments must be electronic unless a waiver has been approved.
Questions people ask
Does Form 502FED-2 replace Form 502FED-1?
No. Form 502FED-1 must be completed and filed. Form 502FED-2 uses the amount from Form 502FED-1, Line 6, Column B.
What tax rates does the form use?
The form applies 5.75% to resident direct partner shares, Virginia-sourced nonresident direct partner shares, and net tiered partner shares. It applies 6% to the Virginia-attributable amount in the corporate and tax-exempt partner section.
How is the total amount due calculated?
Line 19 adds the tax from Lines 4, 8, 12, and 18. Line 22 adds that tax, the penalty on Line 20, and the interest on Line 21.
Who signs the form?
The signature section calls for the State Partnership Representative’s signature. It also includes a preparer declaration and signature fields.