PA-40 NRC: 2025 PA-40 NRC - Nonresident Consolidated Income Tax Return (PA-40 NRC) (2025)
Pennsylvania · Pennsylvania DOR · Used for tax years 2025
The 2025 PA-40 NRC is Pennsylvania’s Nonresident Consolidated Income Tax Return for pass-through entities filing on behalf of two or more qualifying electing nonresident individual owners. It combines and reports those owners’ income or losses, Pennsylvania tax withheld, credits,
Who files this form
The PA-40 NRC is an optional consolidated return for a pass-through entity filing on behalf of two or more qualifying nonresident individual owners who elect to participate. Eligible entities include partnerships, PA S corporations, and LLCs classified as partnerships or PA S corporations for federal income tax purposes.
Each participating owner must:
- Use a calendar tax year.
- Along with their spouse, be domiciled outside Pennsylvania for the entire calendar year and have no permanent place of abode in Pennsylvania during that year.
- Have no other Pennsylvania-taxable income from Pennsylvania sources besides their distributive share from the entity.
- Elect to join the consolidated filing.
An entity with only one qualifying electing owner cannot use this form. That owner must file a PA-40 instead. Estates, trusts, other pass-through entities, and individuals with other Pennsylvania-source income do not qualify as participating owners.
A fiscal-year entity with both a short-year return and a fiscal-year return ending in the same calendar year cannot file a PA-40 NRC for either period.
When it's due
- 2025 return: File by April 15, 2026.
- 2025 return with an extension: File by October 15, 2026.
- 2025 tax payment: An extension does not extend payment time. Pay the full reasonably estimated nonresident withholding tax by April 15, 2026.
What you'll need
Have these documents and details ready:
- PA Schedules NRK-1 for participating owners. Use their amounts and submit the schedules with the return. Federal Schedule K-1 is not an acceptable substitute.
- The entity’s name, address, nine-digit FEIN, business type, and six-digit federal NAICS code.
- PA-20S/PA-65 Schedule NW information for owner counts and withholding allocations. Section II must list all nonresident individual owners, including those who do not qualify.
- Records of estimated withholding payments, extension payments, credits, and any prior-year carryover credit allocated to participating owners.
- A statement or worksheet breaking down credits by credit type, amount, and participating owner if multiple credits appear on NRK-1, Line 7.
- PA-20S/PA-65 V payment voucher if sending payment with the return.
Keep each participating owner’s annual signed election statement in the entity’s records, along with the required owner lists and allocation details. Do not send the election statements to the department.
How to file
Complete the return using participating owners’ PA Schedules NRK-1. Report whole-dollar amounts. On Line 6, add only positive income from Lines 1 through 5, without subtracting losses. Calculate Line 7 using the 3.07% tax rate.
An authorized entity official must sign and date the return by hand and include their title and daytime phone number. Submit all required schedules.
Mail the PA-40 NRC, with or without payment, to:
PA DEPARTMENT OF REVENUE
CONSOLIDATED RETURN
PO BOX 280418
HARRISBURG PA 17128-0418
For a check or money order, make it payable to PA Dept. of Revenue. Write the entity’s FEIN and 2025 PA-40 NRC on it, enclose the PA-20S/PA-65 V voucher, and place it in the same envelope. Do not staple the payment to the return.
Payments can be made electronically through myPATH. Payments of $15,000 or more must be electronic.
To request an extension: Use REV-276, or file the extension electronically through myPATH. Mail REV-276 to:
PA DEPARTMENT OF REVENUE
PO BOX 280504
HARRISBURG PA 17128-0504
When filing the extended return, mark “Extension Requested.” Do not attach REV-276 to the PA-40 NRC.
Common mistakes
- Using an unapproved substitute form. A spreadsheet return is not acceptable and may cause rejection, penalties, interest, or refund delays.
- Attaching federal Schedule K-1 instead of PA Schedule NRK-1. Use the Pennsylvania schedules.
- Subtracting losses from other income classes. Add only positive amounts on Line 6.
- Including non-qualifying owners’ withholding or credits. Do not include these amounts on Lines 8 or 10. Non-qualifying individuals must still appear on Schedule NW, Section II.
- Putting prior-year carryover credit on Line 10. The instructions place qualifying carryover credit on Line 8.
- Assuming an extension also postpones payment. It does not. A federal extension also does not extend the PA-40 NRC filing deadline.
- Failing to reconcile an overpayment. Lines 14a and 14b together must equal Line 13.
Questions people ask
Can a participating owner also file a PA-40?
No. The instructions say owners who elect to participate cannot also file an individual PA-40. They cannot switch their election after either return has been filed. The department retains the right to require an individual PA-40 upon review.
Does this 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 an amended return add another participating owner?
No. An amended PA-40 NRC can correct errors or reflect amended PA Schedules NRK-1, but it cannot add an electing owner or reverse an election by removing a non-qualifying owner.
Must the entity file if the tax due is less than $1?
Yes. Payment is not required when the amount due is less than $1, but the PA-40 NRC must still be filed. The department also will not refund or credit an overpayment of less than $1.