PA-20S/PA-65 Schedule NW: 2025 PA Schedule NW - Nonresident Tax Withheld by PA S Corporations and Partnerships (PA-20S/PA-65 NW) (2025)
Pennsylvania · Pennsylvania DOR · Used for tax years 2025
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 withheld with credits claimed by those owners on their Pen
Who files this form
Schedule NW is for Pennsylvania 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.
Section II identifies nonresident owners and their withholding, including individuals who participate in a PA-40 NRC consolidated return, individuals who do not participate, and estates or trusts that will file PA-41.
What you'll need
Have these forms and records available:
- 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 withholding and extension payments made during the entity’s taxable year.
- Records of prior-year nonresident withholding carryforward credits from PA-20S/PA-65 or PA-40 NRC.
- Records of PA-40 NRC return and extension payments, including any payment submitted with REV-276.
- Each owner’s filing status: PA-40, PA-40 NRC, or PA-41.
If paying by check or money order, use the PA-20S/PA-65 V payment voucher.
How to file
Complete Schedule NW using the entity name and FEIN shown on the PA-20S/PA-65 Information Return. Mark the amended schedule indicator if applicable.
- Section I: Calculate tax on Line A using the specified PA Schedule NRK-1 income amounts and the 3.07% rate. List withholding payments, extension payments, and carryforward credits on Line B. Report PA-40 NRC return and extension payments on Line C. Calculate the remaining payment on Line D.
- Transfer totals: Enter Line B on PA-20S/PA-65, Section V, Line 14a. Enter the remaining payment from Line D on Section V, Line 14b.
- Section II: List each nonresident owner’s information, filing code, other credits, and withholding. Use code P for PA-40, N for PA-40 NRC, or F for PA-41. Total the withholding, including any additional pages.
Paying electronically: The instructions allow nonresident withholding payments through the MeF Fed/State e-File program and myPATH. Payments of $15,000 or more must be electronic.
Paying by mail: Whether filing the information return electronically or by mail, send the PA-20S/PA-65 V voucher and check or money order to:
PA DEPARTMENT OF REVENUE
PO BOX 280502
HARRISBURG PA 17128-0502
Make the payment payable to PA Dept. of Revenue. Write the entity’s FEIN and “2025 PA-20S/PA-65” on it. This is the payment mailing address provided in the text.
Schedule NW is not a payment voucher. Pay any balance due with the PA-20S/PA-65 Information Return.
Common mistakes
- Using Schedule NW as a payment voucher. The form expressly says not to do this.
- Including 1099-MISC/NEC Pennsylvania withholding. Do not enter it anywhere on Schedule NW. Also, do not include payments made by another entity on Line B.
- Withholding for excluded owners or income. Do not withhold for partnership, S corporation, or LLC owners, Pennsylvania resident individuals, or resident beneficiaries of estates or trusts. The instructions also say not to withhold for intangible income such as interest, dividends, or stock sales.
- Failing to allocate all withholding. All nonresident withholding must be allocated to nonresident owners on PA Schedule NRK-1, Line 6, including overpayments.
- Leaving owner rows incomplete. Use only one line per entry. If an SSN or FEIN is entered on a row in Section II, every field on that row must be completed.
- Completing additional-page totals on every page. Complete Lines 2(a) and 2(b) only on the first page.
- Ignoring payment reminders. Do not staple a check or money order to the return. Payments of $15,000 or more must be electronic; otherwise, the stated penalty is 3% of the payment, up to $500.
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 the credit on their individual income tax returns. The PA-20S/PA-65 Information Return does not provide a place to request a refund or carryforward credit.
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 to stop withholding.
What if Lines B and C together exceed Line A?
Enter zero on Line D and follow the instructions for passing overpaid withholding through to nonresident owners.
Can I use extra pages for Section II?
Yes. 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) to get Line 3.