PA-40 NRC: 2024 PA-40 NRC - Nonresident Consolidated Income Tax Return (PA-40 NRC) (2024)
Pennsylvania · Pennsylvania DOR · Used for tax years 2024
The 2024 PA-40 NRC is Pennsylvania’s Nonresident Consolidated Income Tax Return. It combines and reports income or losses, Pennsylvania tax withheld, and credits for two or more qualifying electing nonresident individual owners of a pass-through entity.
Who files this form
PA-40 NRC is an optional consolidated return for a partnership, PA S corporation, or LLC classified as a partnership or PA S corporation for federal tax purposes. It combines the Pennsylvania income, withholding, and credits of two or more qualifying nonresident individual owners who elect to participate.
Each participating owner must:
- Use a calendar tax year.
- Along with their spouse, be domiciled outside Pennsylvania for the entire calendar year and not maintain a permanent home in Pennsylvania during that year.
- Have no Pennsylvania-taxable income from Pennsylvania sources other than their share of income or loss from this entity.
- Elect to join the consolidated filing.
An entity with only one qualifying electing owner cannot use this form. That owner must file PA-40 instead. An entity with only non-qualifying owners also cannot use it. Estates, trusts, other pass-through entities, and individuals with more than one Pennsylvania income or loss source are non-qualifying owners.
A fiscal-year entity with both a short-year return and a fiscal-year return ending in the same calendar year cannot file PA-40 NRC for either period.
When it's due
- 2024 return: File by April 15, 2025.
- 2024 return with an extension: File by October 15, 2025.
Request an extension using REV-276 by the original filing deadline. An extension gives more time to file, not more time to pay. Pay the reasonably estimated nonresident withholding tax in full by the original deadline.
A federal extension does not extend the PA-40 NRC deadline. The U.S. Postal Service postmark is proof of timely filing.
What you'll need
Have these records and schedules ready:
- The entity’s name, address, nine-digit FEIN, business type, and six-digit federal NAICS code.
- PA Schedules NRK-1 for participating owners, showing Pennsylvania income or loss, guaranteed payments for services, and credits.
- PA-20S/PA-65 Schedule NW. Section II must list all nonresident individual owners, including those who do not qualify.
- Records of estimated nonresident withholding payments, any carryover credit, and the extension payment, if any.
- A statement or worksheet breaking down credits by credit type, amount, and participating owner if multiple credits appear on PA Schedule NRK-1, Line 7.
- PA-20S/PA-65 V Nonresident Withholding Payment Voucher if sending a check or money order with the return.
Keep in the entity’s files, not with the return: Each participating owner’s annual signed election statement. Also maintain the required owner information and separate lists of eligible electing owners and non-qualifying owners.
How to file
- Complete the official PA-40 NRC with the entity’s information and the participating owners’ Pennsylvania amounts. Report whole dollars. For Line 6, add only positive income amounts from Lines 1 through 5, without subtracting losses.
- Have an authorized individual sign and date the return by hand, and include their title and daytime phone number. Submit all required schedules.
- Mail the return and appropriate schedules, with or without payment, to:
PA DEPARTMENT OF REVENUE
CONSOLIDATED RETURN
PO BOX 280418
HARRISBURG PA 17128-0418
Payment: Electronic payments can be made through myPATH. Payments of $15,000 or more must be electronic. For a check or money order, make it payable to PA Dept. of Revenue, write the entity’s FEIN and 2024 Final Nonresident Withholding on it, and enclose it with the payment voucher in the return envelope. Do not staple the payment to the return.
Extension: File REV-276 electronically through myPATH or mail it with the applicable payment to:
PA DEPARTMENT OF REVENUE
BUREAU OF INDIVIDUAL TAXES
PO BOX 280504
HARRISBURG PA 17128-0504
When filing the extended return, mark the Extension Requested oval. Do not attach REV-276 to PA-40 NRC.
Common mistakes
- Filing both returns for a participating owner. Owners who elect to join PA-40 NRC should not also file an individual PA-40. The election cannot be changed after either return is filed.
- Replacing PA Schedule NRK-1 with a federal Schedule K-1. Federal Form 1065 or 1120S Schedule K-1 is not an acceptable replacement and should not be attached.
- Using an unapproved substitute form or spreadsheet return. It may be rejected and may cause penalties, interest, or refund delays.
- Including non-qualifying owners’ amounts. Do not include their allocated withholding on Line 8 or their PA Schedule NRK-1 credits on Line 10.
- Treating an extension as extra time to pay. The payment deadline does not change.
- Sending a payment of $15,000 or more by check. These payments must be electronic. Otherwise, the penalty is 3% of the payment, up to $500.
Questions people ask
Does PA-40 NRC replace the entity’s PA-20S/PA-65 filing?
No. The entity must still file PA-20S/PA-65 and issue PA Schedules RK-1 and NRK-1 to its owners.
Can a loss in one income category reduce income in another?
No. Line 6 includes only positive amounts from Lines 1 through 5. A loss in one income class cannot offset income or gain in another.
Can an amended return add another participating owner?
No. An amended PA-40 NRC may correct errors or reflect changes to PA Schedule NRK-1, but it cannot add an electing owner or reverse an election by removing a non-qualifying owner.
What if the tax due is less than $1?
Payment is not required, but the entity must still file PA-40 NRC. The department also will not refund or credit an overpayment of less than $1.