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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 14435
Experience:  15years with H & R Block. Divisional leader, Instructor
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Good afternoon, I am a non US resident and a partner in a

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Good afternoon,
I am a non US resident and a partner in a US based partnership that does some business in Virginia. My income from that partnership is a loss in Virginia. That is my only "income" in Virginia. Do I need to file in Virginia for state tax? What would then be the nonresident allocation percentage? I assume it would be zero. Thanks for your help. Hervé Gallaire

Robin D :

Hello and thank you for using Just Answer,


Partnerships, S Corporations and limited liability companies may file, on behalf of their nonresident partners, shareholders, or members, a unified return (Form 765) thereby relieving these persons of the responsibility of filing a Virginia nonresident individual return.
As a nonresident with no other income in Virginia you are not required to file a Virginia return, but if you choose to file the Nonresident return to carry forward your losses your allocation will be zero.
Just like federal, Virginia requires that partnerships with nonresidents withhold throughout the year on income that would attributable to the nonresident partner, even if no payment is actually disbursed to the nonresident partner. In that case you would file a return to request the withholding in excess of tax liability.

Customer:

As I am the only non resident partner they will not file a form 765.


 

Customer:

Your answer appears to agree with the statements in my question to you. Is that right?


 

Robin D :

Well, if the partnership will not file then you are not required to file if your income for Virginia falls below the level to file. If all your partnership is loss then you are not required to file.

Robin D :

I agreed with the part about allocation percentage and I thanked you for a positive rating, in advance

Customer:

I said they will not file a 765 form (because I am the only non resident partner, hence they can't file that form which is a grouping of partnerss), but they filed a VK-1 on my behalf.


 

Customer:

I said they will not file a 765 form (because I am the only non resident partner, hence they can't file that form which is a grouping of partnerss), but they filed a VK-1 on my behalf.


 


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