502 VK-1: Owner's Share of Income and Virginia Modifications and Credits (2025)
Virginia · Virginia Tax · Used for tax years 2025
Virginia’s 2025 Schedule VK-1 (Form 502) reports a pass-through entity owner’s share of income, deductions, Virginia additions and subtractions, and tax credits. It also reports income allocation and apportionment information and amounts withheld for the owner.
Who files this form
Schedule VK-1 reports a pass-through entity (PTE) owner’s share of income, Virginia modifications, and credits.
The form’s notice says you received this schedule because the PTE passed Virginia-source income through to you. You may need to file a Virginia income tax return even if you are a nonresident individual or a business based outside Virginia. The notice says to consult a tax professional to determine whether you must file.
What you'll need
The schedule calls for:
- Owner and PTE names, addresses, and tax identification numbers, plus the PTE’s taxable year-end date.
- Ownership details, including the date the owner acquired the interest, entity and participation type codes, and participation percentage.
- The amount withheld for the owner and any applicable withholding exemption code.
- The owner’s income, deductions, tax-exempt interest, Virginia additions and subtractions, and tax credits.
- Figures from the PTE’s Schedule 502A for allocation and apportionment.
Use and enclose Schedule SVK-1 if you have more additions or subtractions than Schedule VK-1 allows. Refer to the Form 502 instructions for addition and subtraction codes.
Common mistakes
- Leaving out an overflow schedule: If your additions or subtractions exceed the space on Schedule VK-1, use Schedule SVK-1, check the box on VK-1, and enclose SVK-1.
- Overlooking the code instructions: The form directs you to the Form 502 instructions for addition and subtraction codes.
- Assuming nonresidents have no Virginia filing obligation: The notice says Virginia-source income is subject to Virginia taxation regardless of residency or domicile. You may need to file a Virginia return even if you live or are based outside Virginia.
Questions people ask
Why did I receive Schedule VK-1?
The notice says the PTE earned Virginia-source income and passed a portion of that income through to you based on your ownership. It also says a copy of the schedule has been filed with the Department.
Where is withholding for the owner reported?
The amount withheld by the PTE for the owner is reported on line e under Additional Owner Information. Line f is for an applicable withholding exemption code.
What if I need more space for additions or subtractions?
Use Schedule SVK-1 if you are claiming more additions or subtractions than Schedule VK-1 allows. Check the box on VK-1 and enclose SVK-1.
Where can I find guidance about tax credits?
The form directs individual owners to the Schedule CR instructions and corporate owners to the Schedule 500CR instructions. Individual owners with taxes paid to other states should see the Schedule OSC instructions.
Where can I get Virginia tax information and forms?
Visit www.tax.virginia.gov or call the Department at (804) 367-8031 for individuals or (804) 367-8037 for businesses.