17985: Virginia 502PTET (Drake22)

The Virginia Form 502PTET is a new form for the 2022 tax year. 

From the 502PTET Instructions: 

"For taxable years beginning on and after January 1, 2021, but before January 1, 2026, a qualifying pass-through entity may make an annual election to pay an elective income tax at a rate of 5.75%, provided that a qualifying pass-through entity’s taxable income is adjusted to eliminate any federal deduction for state and local income taxes.

...

A qualifying PTE may make an annual election on its timely filed Form 502PTET for taxable years beginning on or after January 1, 2022, but before January 1, 2026. The election must be made on or before the due date for filing Form 502PTET, including any automatic extensions allowed. An electing PTE must file Form 502PTET instead of Form 502 to compute the PTE tax and the amount of the credit that may be claimed by owners."

1065/1120-S

To make the election, go to VA > screen 1 and check the box Eligibility and election to pay Virginia income tax at the entity level. Overrides are available on the VA > K1 screen. In View/Print mode, VAPTET generates showing the calculation. The amount due must be paid by EFT (using the PMT screen) or on the VA website at www.tax.virginia.gov/payments. The VA PTET is required to be e-filed.  

1040

To report an election and enter credit information, complete the federal K1P or K1S screen. Then, go to the VA > VAK1 screen. Select the Entity FEIN/Name in the drop list, and enter the amount of Pass-Through Entity Elective Tax Payment on line 10.