PA-20S/PA-65 Schedule H-Corp: 2025 PA Schedule H-Corp - Corporate Partner Apportioned Business Income (Loss) (PA-20S/PA-65 H-Corp) (2025)
Pennsylvania · Pennsylvania DOR · Used for tax years 2025
Pennsylvania Schedule H-Corp is an informational schedule that partnerships provide to business-entity partners for corporate net income tax apportionment. It reports Pennsylvania and total sales figures used to calculate apportionment, with a separate section for entities that u
Who files this form
Partnerships must complete Schedule H-Corp and provide a copy to partners that are:
- Partnerships;
- Limited liability companies (LLCs);
- C corporations; or
- S corporations that are not PA S corporations.
Complete the schedule if the partnership has business income from within and outside Pennsylvania, or entirely within Pennsylvania. A partnership with no Pennsylvania activity must still complete it, showing its total sales.
The schedule is for information purposes only. Corporate partners use their share of the information to calculate their own corporate net income tax apportionment.
What you'll need
Have the following information available:
- The partnership’s complete name and nine-digit FEIN as shown on its PA-20S/PA-65 Information Return, plus the date its taxable period ended.
- Federal Form 1065 information. Any amounts that do not agree with it must be reconciled.
- Pennsylvania and everywhere gross receipts for the taxable period, net of returns and allowances.
- Amounts for the schedule’s sales categories: sales, interest, rents, royalties, gross sales prices of assets other than securities, other receipts, and the partner’s share of sales from partnerships.
Entities using special apportionment need the applicable revenue-mile, pipeline-capacity, or port-day information described in the schedule’s instructions.
How to file
Complete Schedule H-Corp and provide a copy to each partner that is a partnership, LLC, C corporation, or S corporation that is not a PA S corporation. The supplied text does not specify a mailing address or an e-file method.
To complete the regular sales-factor calculation:
- Enter the partnership’s name, FEIN, and taxable period end date.
- Enter Pennsylvania gross receipts in column A and gross receipts everywhere in column B, net of returns and allowances. Use corporate net income tax rules to determine where sales are sourced.
- Divide total sales in A by total sales in B. Calculate the result to six decimal places.
Railroad, truck, bus, airline, pipeline, natural gas, and water transportation entities use the special apportionment section instead of the single sales factor.
Common mistakes
- Using this schedule to calculate a non-corporate owner’s income. The text specifically warns not to do this.
- Using the single sales factor for a special-apportionment business. Railroad, truck, bus, airline, pipeline, natural gas, and water transportation entities must use special apportionment instead.
- Skipping the schedule because there is no Pennsylvania activity. The partnership must still complete Schedule H-Corp and show its total sales.
- Failing to provide copies to entity partners. The partnership may face a $250 penalty per schedule.
Questions people ask
Is Schedule H-Corp for information purposes only?
Yes. It supplies apportionment information to business-entity partners. A corporate partner uses its share of the partnership’s receipts in calculating its own corporate net income tax apportionment.
How does a corporate partner determine its share of gross receipts?
Multiply the partnership’s gross receipts shown on Schedule H-Corp by the corporate partner’s ownership percentage. The partner includes its share of Pennsylvania receipts in its sales-factor numerator and its share of receipts everywhere in the denominator.
Which receipts are excluded from the sales factor?
Exclude dividends, income from U.S. securities, and receipts from sales of securities from both the numerator and denominator. The exclusion for receipts from sales of securities does not apply to a securities dealer.
What if the partnership must withhold tax for a nonfiling corporate partner?
It must complete Schedule CP. The Pennsylvania apportionment figure used to calculate corporate net income tax withholding comes from Schedule H-Corp.