502W: Pass-Through Entity Withholding Tax Payment Voucher and Instructions (2025)
Virginia · Virginia Tax · Used for tax years 2025
Virginia Form 502W is a payment voucher for pass-through entity withholding tax on Virginia-source income allocated to nonresident owners. It records the entity’s identifying information, taxable year, and payment amount. The paper voucher is only for entities with an approved wa
Who files this form
A pass-through entity (PTE) must pay withholding tax if it does business in Virginia, has taxable income from Virginia sources, and must allocate any of that income to a nonresident owner.
The withholding rate is 5% of each nonresident owner's share of taxable income from Virginia sources. Eligible tax credits earned by the PTE and passed through to nonresident owners may reduce the tax.
A PTE does not have to pay this withholding tax if it is a publicly traded partnership, is a disregarded entity, or files a unified return on behalf of all nonresident owners. Certain nonresident owners also qualify for exemptions, which the PTE must document.
Returns and payments must be submitted electronically unless a waiver has been granted. Use the paper Form 502W voucher only with an approved waiver. Form 502W is used for withholding payments made before filing Form 502. For a payment made with Form 502, use Form 502V.
When it's due
For tax year 2025 calendar-year filers, the withholding payment is due April 15, 2026, even if the PTE uses the extension to file Form 502.
What you'll need
Have the following information ready to complete Form 502W:
- The PTE's federal employer identification number (FEIN), entity type, and 6-digit NAICS code.
- The PTE's name and mailing address.
- The taxable year's ending month and year.
- Taxable income information, nonresident owners' shares, and applicable tax credits needed to calculate withholding.
- The total payment amount, signature, date, and phone number.
If a nonresident owner claims an exemption, obtain documentation explaining the basis and keep it with the PTE's records. With the withholding tax return, provide a list of owners claiming exemptions, including each owner's name, taxpayer identification number, address, and basis for exemption.
How to file
Pay electronically
Visit www.tax.virginia.gov, open the eForms application, and select 502W. Complete the form and payment information online. You can schedule the payment for a future date.
You may also pay by ACH credit through your bank. Some banks charge a fee. See the Department's Electronic Payment Guide on its website for details.
Use a paper voucher only with an approved waiver
Complete the PTE's identifying information, taxable year's ending month and year, and payment amount. Enter the appropriate entity type code: SC for S corporation, PG for general partnership, PL for limited partnership, LL for limited liability company, LP for limited liability partnership, NZ for nonprofit organization, or OB for other.
Sign and date the voucher and enter your phone number. Detach the voucher. Do not send the entire page. The mailing address printed on the voucher is:
Virginia Department of Taxation
P.O. Box 1500
Richmond, VA 23218-1500
Common mistakes
- Using paper without approval: Use the paper voucher only if you have an approved waiver from electronic filing and payment.
- Using the wrong payment voucher: Use Form 502V for a payment made with Form 502. Do not use Form 502W or Form 502V for payments with the Unified Nonresident Individual Income Tax Return, Form 765.
- Treating the filing extension as extra time to pay: The withholding payment is due on the return's original due date, even if the filing extension is used.
- Entering the wrong tax period: Enter the numerical ending month and year so the payment is credited to the correct taxable year.
- Sending the entire page or leaving the voucher incomplete: Detach the voucher, enter the required entity type code, and sign, date, and provide your phone number.
- Assuming withholding passes through an intermediate PTE: A nonresident owner PTE cannot claim credit on its Form 502 for withholding paid on its behalf. The text cautions that withholding does not pass through to owners more than one ownership level away. If withholding was made in error for a nonresident owner PTE, the withholding PTE should file an amended Form 502.
Questions people ask
How do I calculate the withholding payment?
Calculate the nonresident owners' shares of taxable income from Virginia sources, multiply by 5%, and reduce the tax by their shares of allowable tax credits. Enter the total withholding for all nonresident owners as the payment amount.
Does an extension to file Form 502 extend the payment deadline?
No. The withholding payment is due on the PTE return's original due date. Interest applies to unpaid tax from the due date until payment, and penalties may also apply.
Do I need to withhold for an owner that is another PTE?
Generally, no. That owner PTE is responsible for filing its own Form 502 and withholding for its nonresident owners. However, if it tells you it will not file Form 502, you must withhold on its behalf.
Can a PTE request relief because withholding creates an undue hardship?
Yes. The PTE may write to the Tax Commissioner requesting an exemption. The letter must provide information allowing the Commissioner to compare the PTE's compliance costs with Virginia's costs of collecting income tax from nonresident owners who do not voluntarily file and pay.
Where can I get help with this form?
Call (804) 367-8037, or write to the Virginia Department of Taxation, P.O. Box 1115, Richmond, VA 23218-1115.