502: Pass-Through Entity Return of Income and Return of Nonresident Withholding Tax (2025)
Virginia · Virginia Tax · Used for tax years 2025
Virginia Form 502 is the 2025 pass-through entity income and nonresident withholding tax return. It reports income, deductions, Virginia adjustments, and tax credits passed through to owners, and reconciles withholding tax due and paid for nonresident owners.
What you'll need
- Include a copy of the entity’s federal return with Form 502. Do not include a federal Schedule K-1 for each owner.
- Have the owner counts and nonresident withholding amounts ready. The form asks you to count all owners issued a federal Schedule K-1 for the taxable year and total the withholding from Line e of all Schedules VK-1.
- Use Schedule 502A for the allocation and apportionment amounts referenced on the form, if applicable.
- Enclose Schedule 502ADJ when reporting the additions, subtractions, or credits that the form takes from that schedule.
- If you filed a Schedule VK-1 for each owner through Web Upload, do not include copies with Form 502.
How to file
The mailing address printed on Form 502 is:
Virginia Department of Taxation
P.O. Box 1500
Richmond, VA 23218-1500
Complete the declaration and signature area for the owner or authorized representative. Include a copy of the federal return.
If Schedules VK-1 were filed through Web Upload, check the box on the first page. If you uploaded a Schedule VK-1 for each owner, do not include copies with Form 502.
Do not submit Form 765 with this return. Mail it separately to the address on Form 765.
Common mistakes
- Leaving out the federal return copy. The form says to include it.
- Including a federal Schedule K-1 for each owner. The form specifically says not to include these.
- Including copies of Schedules VK-1 after filing one for each owner through Web Upload. The form says not to include those copies.
- Sending Form 765 with Form 502. Mail Form 765 to the address printed on that form instead.
- Including payments other than the entity’s own payments on Page 2, Section 1, Line 2. That line is for the entity’s own withholding tax payments only.
Questions people ask
Which owners should be included in the owner count?
Count all owners who were issued a federal Schedule K-1 for the taxable year. The total includes individuals and other entity types. Report the 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” area.
Can a withholding overpayment be credited to the next year?
Yes. Page 2, Line 11 lets you enter the amount to credit to 2026. Line 12 is for the amount to be refunded.
Can the Department discuss the return with the tax preparer?
Yes. Check the authorization box on the first page to allow the Department to discuss the return with the preparer who signs it.