Entities can now file the Tax Year

2021 PTET

Electing Pass-Through Entities (PTEs) can now file and pay their Tax Year 2021 Pass- Through Entity Tax (PTET) return through the electronic filing option (free fillable form) available on our online application for businesses. Tax Year 2021 returns must be filed using this option. If the PTE doesn’t already have an online business account with us, they’ll need to register for one on our website to file. Tax Year 2021 PTET returns are due September 16, 2024.

As a reminder, the PTET return (502PTET) must be filed electronically, and there is no waiver from the electronic filing requirement. Entities can also make PTET payments using the PTET-PMT eform or ACH credit. The Tax Year 2021 PTET return will not be accepted without full payment of the 2021 PTET. See the Tax Year 2021 PTET Guidelines for more information.

Tax Year 2023 PTET update 

Entities can now file the Tax Year 2023 PTET using approved tax preparation software. Our electronic filing option (free fillable form) will be available this spring.

Schedule VK-1 reminder 

If an entity is completing a Schedule VK-1, please ensure it correctly identifies the owners that will be claiming the PTET credit. For example, if a PTET credit is passed to a grantor trust and the grantor is eligible to claim the PTET credit on their individual return, specify on the Schedule VK-1 the grantor’s name, social security number, and whether the entity type is a resident or nonresident.

More information 

PTET filing and payment requirements vary depending on the tax year. Please continue to monitor the Virginia Elective Pass-Through Entity Tax page of our website for additional updates.

Contact us at 804.367.8031 for individual income tax questions and 804.367.8037 for business tax questions.