Draft 2023 Form 502 - Pass-Through Entity Return of Income and Return of Nonresident Withholding Tax-2025

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Withholding agents are required to withhold 7% on payments or distributions to nonresident payees when the total payments or distributions of CA source income exceeds $1,500 for the calendar year.
State income tax withholding follows a few different rules. First, payroll is primarily based on the rules of the state where the work is performed. If an employee lives out of state but comes to work in person, payroll withholding generally follows the rules of where your business is located.
States that have mandatory state tax withholding on distributions include Arkansas, California, Connecticut, Delaware, Iowa, Kansas, Maine, Massachusetts, Michigan, Minnesota, North Carolina, Oklahoma, Oregon, Vermont, Washington D.C.
To submit Form 502, you can file electronically via the Virginia Department of Taxations e-file platform. Alternatively, you may send your completed form by fax to (804) 254-6111 or mail it to Department of Taxation, P.O. Box 1115, Richmond, Virginia 23218-1115.
U.S. State Non-resident Withholding Tax Georgia. Maryland. Oklahoma. New Mexico. Utah. California. Oregon. Montana.

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The PTE is required to withhold 5% of the share of taxable income from Virginia sources that is allocable to each nonresident owner. The amount of withholding tax may be reduced by any tax credits that were earned by the PTE and allowable by the Code of Virginia that pass through to nonresident owners.
State-based income sources: Earning income in a state can mean you have a filing requirement, even if you dont live or work there. Examples are rental income or investments like a real estate investment trust or a partnership located in the state.
In general, an employer who pays wages to one or more employees in Virginia is required to deduct and withhold state income tax from those wages. Since Virginia law substantially conforms to federal law, if federal law requires an employer to withhold tax from any payment, we also require Virginia withholding.

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