How do I prepare Virginia 502PTET with an 1120S using CCH® ProSystem fx® Tax and CCH Axcess™ Tax?

  • Article Type:
  • How To
  • Last Modified:
  • 11/28/2023

Objectives

Generate and populate VA 502PTET with an 1120S return.

Environment

  • CCH® ProSystem fx® Tax and CCH Axcess™ Tax
  • S Corporation – 1120
  • Virginia - VA
  • Pass-Through Entity Elective Income Tax - PTET

Procedure

Populate 502PTET page 1 election checkbox

  • Go to Virginia > General worksheet > expand section PTET Information > line "Check here to certify eligibility and election to pay Virginia at the entity level for the taxable year. If not checked, the election will be invalid, select the checkbox.
    • Interview Form Virginia > VA1, box 100.

Prepare 502PTET return
Only entities solely consisting of Individuals, Trusts, and Estates may file for the PTET in Virginia.

  • Go to Common State > State PTE Generation worksheet > line - Virginia (Interview PTE1, box 254), select the checkbox.

Extension

See 502PTET Instructions notes on an automatic extension. 
If input is made for a Virginia extension, the letters will note No extension required.

  • Go to Extensions > Extensions worksheet > section State / City Extension > Detail > select VA
    • Interview EXT-2, box 30.
    • If after 3/15, also select checkbox Unlock (Interview EXT-2, box 44).

Payments
502PTET, page 2, Section III, Line 8

  1. Go to Payments / Penalties / Estimates > Payments worksheet.
  2. Expand section State Quarterly Payments.
  3. Select Detail.
  4. In line 9 - Prior year overpayment applied - Based on Income column, input applicable amount.
    • Interview Form Common State > St Pay/Est > STPAY-1, box 30 with VA, and box 100 with amount.

502PTET, page 2, Section III, Line 9

  • Go to Virginia > General worksheet > section PTET Information > Line Extension and other payments made to PTET.
    • Interview Form Virginia > VA1, box 102.

502PTET, page 2, Section III, line 14

  1. Go to Federal > Payments/Penalties/Estimates worksheet > Estimates and Application of Overpayment.
  2. Expand section State Estimates and Application of Overpayment.
  3. Select state code VA > Detail.
  4. In line Amount of overpayment to apply to other taxes, input applicable amount.
    • Interview Form Common State > St Pay/Est > STEST-1 > box 30 - VA, and box 72 - input amount.

PTE Next Year Estimates
Estimates for this form are not supported, but estimate filing instructions and transmittal letters are prepared directing clients to Virginia Department of Taxation for payment information: https://www.tax.virginia.gov/payments

Electronic Filing

  • Return efile available with option to pay by direct debit. Informational diagnostics 34057 will issue to confirm bank info setup properly.
  • If no bank info entered, the letters will default to ask client to pay amount due at state webpage https://www.tax.virginia.gov/payments

Filing Instructions

  • Extension, Return, letters available.

Note

  • Interest and penalties may apply and they are the same calculation as the main 502 return.

Additional Information

N/A

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