PA-20S/PA-65 Schedule RK-1: 2025 PA Schedule RK-1 - Resident Schedule of Shareholder/Partner/Beneficiary Pass Through Income, Loss and Credits (PA-20S/PA-65 RK-1) (2025)
Pennsylvania · Pennsylvania DOR · Used for tax years 2025
Pennsylvania Schedule RK-1 reports a resident 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 tax purposes. It also reports distributions, guaranteed payments and other ownership-rela
Who files this form
Partnerships, PA S corporations, and LLCs classified as partnerships or S corporations for federal income tax purposes must prepare Schedule RK-1 for each Pennsylvania resident owner. It reports the owner's share of income, losses, credits and other items.
Resident owners include individuals, estates, trusts, other PA S corporations, partnerships and other pass-through entities. An entity that owns another entity receives both Schedule RK-1 and Schedule NRK-1.
The issuing entity must include copies with its PA-20S/PA-65 Information Return, give copies to owners and keep copies in its records.
Schedule RK-1 does not need to be issued to a C corporation taxpayer unless a credit from Schedule OC has been allocated.
What you'll need
Have the following information and supporting statements ready, as applicable:
- Owner and issuing entity details: Full names, addresses, complete SSNs or FEINs, owner and entity types, and ownership percentages. Include the spouse's SSN if jointly held.
- PA-20S/PA-65 Information Return: Use it to determine the owner's share of income, losses and credits.
- Distribution and basis information: Amounts for distributions, guaranteed payments, nontaxable income, nondeductible expenses, depreciation and the partner's year-end liabilities.
- Line 8 resident credit statement: Show the states involved, Pennsylvania income classes, taxes paid and resident credit claimed. Include copies of out-of-state composite returns for credits claimed.
- Line 9 other credits statement: List the credits passed through to the owner.
- Line 16 basis statement: Break down permanent nontaxable income and nondeductible expenses used to calculate the owner's basis.
- Guaranteed payment statement: If payments cover more than one income class, provide a statement showing the amounts for each line.
The Line 8 and Line 9 statements must identify the entity, its FEIN, the tax year, the owner names and their tax identification numbers. The Line 16 statement must include the entity's name, FEIN and tax year.
How to file
Submit a copy of each owner's Schedule RK-1 with the entity's PA-20S/PA-65 Information Return. Give each owner a copy to prepare their Pennsylvania return, and retain a copy in the entity's records.
The text addresses both paper and electronically filed returns. Partnerships, PA S corporations, estates, trusts and LLCs must submit Schedule RK-1 with their applicable Pennsylvania tax returns. Amounts from the schedule must be reported on the appropriate Pennsylvania tax return.
No mailing address or specific e-file procedure is provided in the supplied text. For where to file an amended return, it directs filers to the WHERE TO FILE section of the PA-20S/PA-65 Information Return instructions.
To amend a schedule, use a blank schedule for the tax year being corrected, 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.
Common mistakes
- Leaving identification incomplete: Missing names, addresses or complete SSNs/FEINs for the receiver or issuer may cause processing issues.
- Using the wrong owner tax ID: For a disregarded entity, use the beneficial owner's tax ID in the appropriate SSN or FEIN field. Provide the disregarded entity's FEIN in the designated owner field.
- Submitting an amended RK-1 alone: The department will not accept it without the amended PA-20S/PA-65 Information Return.
- Submitting schedules on CD-ROM: These will not be processed. Each missing RK-1 or NRK-1 may result in a $250 non-filer penalty.
- Putting guaranteed payments on Line 1: The instructions say not to include them there.
- Using Line 8 for an entity-level tax resident credit: The instructions specifically prohibit this.
- Deducting Line 17 again: The IRC Section 179 amount is informational and has already been deducted from the applicable income class.
- Ignoring entry reminders: Enter whole dollars only and fill in the applicable loss ovals.
Questions people ask
Do I owe Pennsylvania tax if the income was not distributed to me?
Pennsylvania resident individual owners are subject to Pennsylvania personal income tax on their share of the entity's income whether or not it was distributed, and regardless of where the income came from.
What if I was a Pennsylvania resident for only part of the year?
For a PA S corporation shareholder, the corporation prepares a separate RK-1 for the resident portion of the year. Income and losses are allocated based on residency days and stock ownership. The shareholder receives both RK-1 and NRK-1.
For a partner, income is not prorated by residency days. Residency generally depends on status at year-end, with separate rules for a partner who dies or disposes of their entire partnership interest during the year.
What if a partnership distribution exceeds my basis?
A distribution reported on Line 10 reduces the partner's basis. Any amount exceeding basis must be reported as taxable gain on the resident partner's Schedule D.
What is Line 16 used for?
Line 16 supplies permanent nontaxable income and nondeductible expense information needed to calculate the owner's basis. Do not include the difference between federal and Pennsylvania depreciation on this line.