502A: Multistate Pass-Through Entity Allocation and Apportionment of Income (2025)
Virginia · Virginia Tax · Used for tax years 2025
Virginia Schedule 502A is used by pass-through entities to calculate the allocation and apportionment of income reported on Form 502. It records the apportionment method and percentage and calculates allocable and apportionable income.
Who files this form
Schedule 502A is for pass-through entities allocating and apportioning income for Virginia Form 502.
The schedule provides special apportionment methods for motor carriers, financial corporations, construction corporations, railway companies, retail companies, debt buyers, manufacturers electing the modified method, and certain enterprise data center operations. It also provides a multi-factor formula with double-weighted sales.
The form does not state a general filing threshold.
What you'll need
The form calls for the following information:
- The entity name as shown on Form 502 and its FEIN.
- Taxable income amounts from Form 502, Line 1.
- Total and Virginia amounts for the applicable apportionment factors.
- Whether the entity’s commercial domicile is in Virginia, and dividends received.
- Nonapportionable investment function income and loss, if the commercial domicile is outside Virginia.
- For manufacturers electing the modified method, the beginning date of the election year and wage and employment information needed for the annual certification.
Common mistakes
- Missing the annual manufacturer certification. Section A, Line 7 requires wage and employment certification each year for the manufacturer’s modified apportionment method. The checkbox certifies that average weekly wages of full-time employees exceed the lower of the state or local industry average, and that average annual full-time employment is at least 90% of base-year employment.
Questions people ask
How is the double-weighted sales percentage calculated?
Multiply the sales factor on Section B, Line 2(c) by 2. Add that result to the property and payroll percentages. Divide the sum by 4, reduced by the number of factors, if any, having no denominator.
Where do dividends go if the entity’s commercial domicile is in Virginia?
Enter dividends received on Section C, Line 2 and on Form 502, Line 4.
How is allocable income calculated for an entity commercially domiciled outside Virginia?
In Section C, add dividends received on Line 3(a) and nonapportionable investment function income on Line 3(b). Subtract nonapportionable investment function loss on Line 3(d). Enter the result on Line 3(e) and Form 502, Line 5.
Where does apportionable income go?
Enter it on Section C, Line 4 and Form 502, Line 6. If domiciled in Virginia, subtract Section C, Line 2 from Line 1. If not domiciled in Virginia, subtract Line 3(e) from Line 1.
Is there a checkbox for filing a unified nonresident return?
Yes. The top of the schedule has a checkbox for entities filing a Unified Nonresident Individual Income Tax Return, Form 765.