PA-20S/PA-65 Schedule NRK-1: 2025 PA Schedule NRK-1 - Nonresident Schedule of Shareholder/Partner/Beneficiary Pass Through Income, Loss and Credits (PA-20S/PA-65 NRK-1) (2025)
Pennsylvania · Pennsylvania DOR · Used for tax years 2025
Pennsylvania Schedule NRK-1 reports a nonresident owner’s share of income, losses and credits from a partnership, PA S corporation or LLC classified as a partnership or S corporation for federal income tax purposes. It also reports Pennsylvania nonresident tax withheld, distribut
Who files this form
Partnerships, PA S corporations and LLCs classified as partnerships or S corporations for federal income tax purposes must prepare Schedule NRK-1 for each nonresident owner with an ownership interest. This includes nonresident individual owners, estates, trusts, other PA S corporations, disregarded entities and other partnerships.
Special rules apply:
- Part-year S corporation shareholders: Prepare a separate NRK-1 for the portion of the year the shareholder was a Pennsylvania nonresident.
- Individual partners: Prepare an NRK-1 if the partner was a nonresident at year-end, at death during the year, or when the partner disposed of their entire partnership interest.
- C corporation owners: The schedule does not need to be issued to them unless a credit from PA Schedule OC has been allocated.
What you'll need
Have the following information and supporting documents available:
- The issuing entity’s and receiving owner’s full names, addresses and complete SSNs or FEINs, as applicable. Include the spouse’s SSN if the interest is jointly held.
- The shareholder’s stock ownership percentage, or the partner’s profit-sharing, loss-sharing and capital ownership percentages.
- The entity’s PA-20S/PA-65 Information Return and applicable PA Schedule D information for the owner’s income, losses and credits.
- Information about distributions, guaranteed payments, nonresident tax withheld, depreciation and partnership liabilities, as applicable.
Required statements, when applicable:
- Line 7: List the credits passed through, the entity’s name and FEIN, the tax year, and the owners’ names and tax identification numbers.
- Line 10: If guaranteed payments include more than one income class, provide a statement showing the amounts for each line.
- Line 14: Provide a breakdown of nontaxable income and nondeductible expenses, with the entity’s name, FEIN and tax year.
How to file
Submit a copy of each owner’s Schedule NRK-1 with the entity’s PA-20S/PA-65 Information Return. Give owners copies so they can prepare their Pennsylvania returns, and retain copies in the entity’s records.
The supplied text discusses paper and electronically filed returns but does not give a mailing address or electronic filing steps. It does not allow schedules submitted on CD-ROM.
To correct a schedule, use a blank schedule for the tax year being amended, fill in the Amended Schedule oval and enter the corrected information. Submit it with the amended PA-20S/PA-65 Information Return. Do not send a copy of the original schedule. For where to send the amendment, the text refers to WHERE TO FILE in the PA-20S/PA-65 Information Return instructions.
Common mistakes
- Leaving identification information incomplete: Both the receiver and issuer need complete identification numbers, full names and addresses. Missing information may cause processing issues.
- Using a disregarded entity’s TIN as the recipient’s TIN: Use the beneficial owner’s SSN or FEIN in the appropriate field. Provide the disregarded entity’s FEIN in the owner portion of Section I.
- Sending an amended NRK-1 by itself: The department will not accept it without the amended PA-20S/PA-65 Information Return.
- Submitting schedules on CD-ROM: They will not be processed, and the entity may face a $250 non-filer penalty for each missing schedule.
- Deducting Line 15 again: The Section 179 amount is supplemental information only and has already been deducted from the applicable income class.
- Failing to report schedule amounts on the appropriate Pennsylvania return: The form expressly reminds recipients to do so.
Questions people ask
Do I owe Pennsylvania tax if the income was not distributed to me?
Yes. Nonresident individual owners are subject to Pennsylvania personal income tax on their share of the entity’s Pennsylvania-source income, whether or not it was distributed.
How are part-year residents treated?
S corporation shareholders have income and losses prorated based on days of residency and nonresidency and receive both RK-1 and NRK-1. A partner generally reports based on residency at year-end and does not prorate income. Separate rules apply when a partner dies or disposes of their entire interest during the year.
Will an entity owner receive both RK-1 and NRK-1?
Yes. The text states that entity owners receive both schedules.
What does Line 6 report?
Line 6 reports Pennsylvania nonresident tax withheld and submitted to the Department of Revenue. It also includes excess withholding paid on the owner’s behalf if the owner will receive a refund or credit for that excess.