502: Pass-Through Entity Return of Income and Return of Nonresident Withholding Tax (2024)
Virginia · Virginia Tax · Used for tax years 2024
Virginia Form 502 is the 2024 Pass-Through Entity Return of Income and Return of Nonresident Withholding Tax. It reports income, deductions, Virginia adjustments, credits passed through to owners, and withholding tax for nonresident owners, including amounts due or refundable.
What you'll need
- Include a copy of your federal return with Form 502. Do not include a federal Schedule K-1 for each owner.
- Have your owner counts and Schedules VK-1 available to report nonresident withholding. If you filed Schedules VK-1 online using Web Upload, do not include copies with Form 502.
- Use Schedule 502A for the allocation and apportionment amounts referenced on the form, as applicable.
- Include Schedule 502ADJ when reporting the additions, subtractions, or credits that the form identifies as coming from that enclosed schedule.
- Have the entity’s FEIN, formation date, date operations began in Virginia, NAICS code, and business information ready.
How to file
The address printed on Form 502 is:
Virginia Department of Taxation
P.O. Box 1500
Richmond, VA 23218-1500
Complete the owner or authorized representative signature, printed name, title, date, and phone fields. The form also provides fields for a paid preparer’s information and signature.
Include a copy of your federal return. If you filed Schedules VK-1 through Web Upload, check the box indicating that and do not include paper copies of those schedules.
Do not submit Form 765 with Form 502. Mail Form 765 to the address printed on Form 765.
Common mistakes
- Leaving out the copy of the federal return that must accompany Form 502.
- Including a federal Schedule K-1 for each owner, despite the form’s warning not to do so.
- Including copies of Schedules VK-1 after filing them online through Web Upload.
- Sending Form 765 with this return instead of mailing it to the address on Form 765.
- Reporting payments other than the entity’s own payments on page 2, Section 1, Line 2. That line specifies the entity’s own payments only.
Questions people ask
Which owners count toward the total number of owners?
Count all owners who were issued a federal Schedule K-1 for the taxable year, including individuals and other entity types. Report the total number of nonresident owners separately.
What if the entity is exempt from withholding?
Enter the withholding exemption code on Line d in the “Number and Types of Owners” section.
Can a withholding overpayment be applied to the next year?
Yes. Page 2, Line 11 provides for a withholding overpayment to be credited to 2025. Line 12 provides for an amount to be refunded.
Can I authorize the Department to discuss the return with my preparer?
Yes. Check the authorization box on the form to allow the Department to discuss the return with the tax preparer who signed it.