PA-20S/PA-65 Schedule NW: 2024 PA Schedule NW - Nonresident Tax Withheld by PA S Corporations and Partnerships (PA-20S/PA-65 NW) (2024)
Pennsylvania · Pennsylvania DOR · Used for tax years 2024
Pennsylvania Schedule NW reports withholding payments, extension payments, and prior-year carry-forward credits for nonresident individual, estate, and trust owners of PA S corporations and partnerships. It reconciles tax due with payments and credits and lists withholding for ea
Who files this form
Schedule NW is for PA S corporations, partnerships, and limited liability companies filing as partnerships or PA S corporations for federal income tax purposes. Use it to report withholding payments, extension payments, and prior-year carryforward credits for individual, estate, or trust owners who were not Pennsylvania residents during the taxable year.
The schedule reconciles the entity’s nonresident withholding with credits claimed by those owners on their Pennsylvania tax returns.
Do not withhold Pennsylvania personal income tax for owners that are partnerships, S corporations, or limited liability companies. The text also prohibits withholding for Pennsylvania resident individuals or resident beneficiaries of estates or trusts.
What you'll need
Have these records available to complete the schedule:
- The entity’s PA-20S/PA-65 Information Return, including its business name and nine-digit FEIN.
- PA Schedules NRK-1 for nonresident individual, estate, and trust owners. You will use owner names, SSNs or FEINs, income amounts, Line 6 withholding, and Line 7 other credits.
- Dates and amounts of nonresident withholding and extension payments, plus records of prior-year carryforward credits.
- Records of PA-40 NRC return and extension payments, including any payment submitted with REV-276.
- Information showing which owners will file PA-40, participate in PA-40 NRC, or file PA-41.
For a payment by check or money order, use the PA-20S/PA-65 V voucher available on the department’s website.
How to file
Complete the schedule
Enter the entity’s name and FEIN as shown on its PA-20S/PA-65 Information Return. Mark the amended schedule indicator if applicable.
In Section I:
- Line A: Total the applicable income from PA Schedule NRK-1, Lines 1 through 5 and Line 10, and multiply by 3.07%. Follow the printed rules for losses and guaranteed payments.
- Line B: List withholding payments, extension payments, and carryforward credits. Enter the total here and on PA-20S/PA-65, Section V, Line 14a.
- Line C: Enter PA-40 NRC return and extension payments.
- Line D: Subtract Lines B and C from Line A. If B plus C exceeds A, enter zero. Any final payment must match PA-20S/PA-65, Section V, Line 14b.
In Section II, list each nonresident individual, estate, or trust owner, the applicable tax form code, and amounts from PA Schedule NRK-1, Lines 7 and 6. Complete the page totals.
Pay any balance
Schedule NW is not a payment voucher. Pay any balance due with the PA-20S/PA-65 Information Return.
If filing electronically, the final nonresident withholding payment can be transmitted through the MeF Fed/State e-File program. Nonresident withholding payments can also be made through myPATH. See revenue.pa.gov for information.
For payment by check, whether the return is filed electronically or by mail, send the PA-20S/PA-65 V voucher and payment to:
PA DEPARTMENT OF REVENUE
BUREAU OF INDIVIDUAL TAXES
PO BOX 280502
HARRISBURG PA 17128-0502
Make the check or money order payable to PA Dept. of Revenue. Write the entity’s FEIN and “2024 PA-20S/PA-65” on it. Do not staple it to the return.
Payments of $15,000 or more must be electronic. Otherwise, a penalty of 3% of the payment applies, up to $500.
Common mistakes
- Using Schedule NW to send a payment. It is not a voucher. Use the payment methods described in the text.
- Entering 1099-MISC/NEC Pennsylvania withholding on Schedule NW. Do not enter it on any line. The text directs pass-through entities to REV-1897 for incorrectly withheld amounts.
- Including payments made by another entity on Line B. The instructions specifically prohibit this.
- Withholding on intangible income. The text says not to withhold for income such as interest, dividends, or stock sales.
- Offsetting losses incorrectly on Line A. Losses on NRK-1, Lines 1 through 5 do not offset each other. The text provides a specific exception involving Line 10 guaranteed payments for services connected with Line 1 or Line 3 income.
- Leaving withholding unallocated. All nonresident withholding must be allocated to the nonresident owners’ PA Schedules NRK-1, Line 6.
- Using multiple lines for one owner or leaving fields blank. Use one line per entry. If an SSN or FEIN is entered in Section II, Lines A through Z, every field on that line must be completed.
Questions people ask
What happens if the entity overpaid nonresident withholding?
The entity must pass the overpayment through to its nonresident owners on PA Schedule NRK-1, Line 6. Owners can then claim a credit on their individual income tax returns. The PA-20S/PA-65 Information Return is not a return on which the entity can request a refund or carryforward credit.
Which tax form code should I enter in Section II?
Use P for an individual filing PA-40 who is not included in the consolidated return, N for an individual partner or shareholder included in PA-40 NRC, and F for an estate or trust filing PA-41.
What if I need more pages for Section II?
Complete Lines 2(a) and 2(b) on the first page only. Enter the number of additional pages on Line 2(a) and the total of their Line 1 amounts on Line 2(b). Add Lines 1 and 2(b) for Line 3.
What should the entity do if it received a 1099-MISC/NEC showing Pennsylvania withholding?
Do not claim that withholding on Schedule NW. Complete REV-1897, Claim for Refund/Credit by Pass-Through Entity for Incorrect Withholding, and submit it as directed on that form. The entity should also give the payer a completed REV-1832, Nonresident Withholding Exemption Certificate, to stop the withholding.