PA-40/PA-41 Schedule G-L: PA Schedule G-L - Resident Credit for Taxes Paid (PA-40/PA-41 G-L) (Revision)
Pennsylvania · Pennsylvania DOR · Used for tax years 2024, 2025, 2026
PA Schedule G-L calculates and reports the Pennsylvania resident credit for income taxes paid to another state on income also subject to Pennsylvania personal income tax in the same taxable year. It reports income by class, taxes paid to the other state, adjustments, and the resu
Who files this form
Pennsylvania resident and part-year resident individuals, and Pennsylvania resident estates and trusts, must complete and include Schedule G-L with an originally filed PA-40 or PA-41 when claiming a resident credit on PA-40 Line 22 or PA-41 Line 15.
The schedule calculates the credit for qualifying taxes paid to another state on income also subject to Pennsylvania personal income tax in the same taxable year. The same income cannot be taxable in more than one other state.
Prepare a separate Schedule G-L for each state. Spouses filing a joint PA-40 must also prepare separate schedules for their own income and credits.
What you'll need
Submit the supporting documents that apply to your credit with your PA-40 or PA-41:
- A separate Schedule G-L for each state where you claim a credit.
- Copies of income tax returns filed with the other states.
- Copies of Forms W-2, if available, showing compensation taxed by the other states, or a statement explaining how that compensation was determined.
- If the W-2 amount differs from compensation reported as taxable on the other state's return, that state's apportionment schedule or a supporting statement explaining the amount.
- For credits from a PA S corporation, copies of PA Schedules RK-1 and the statement showing your share of income by class, tax paid, and credit for each state.
- For credits from a partnership or limited liability company, a statement showing your share of income by class, tax paid, and resident credit for each state.
- If claiming a credit for interest or dividend income, copies of the other state's applicable commercial domicile rule, law, or regulations.
The department may later request additional proof of taxes paid or amounts due, such as checks, money orders, or entity returns.
How to file
Include Schedule G-L and the required supporting documents with your originally filed PA-40 or PA-41.
- Complete a separate schedule for each state and, for a joint PA-40, each spouse claiming a credit.
- Complete Section I to calculate the credit and Section II to identify the sources and amounts of income taxed by the other state.
- Complete Section III if a credit limitation requires an adjustment to tax paid.
- Total the allowable credits from Line 6 of all your Schedules G-L. Report the total on PA-40 Line 22 or PA-41 Line 15, as applicable.
The supplied text does not provide a mailing address or e-filing directions.
Common mistakes
- Combining states on one schedule. Each state's credit must be calculated on a separate Schedule G-L. Do not enter Pennsylvania as the other state.
- Claiming a joint credit for spouses. Even when filing jointly, each spouse must use separate schedules and report only their own income.
- Skipping the overall credit limit. With multiple schedules, compare the combined income taxed by the other states in each income class with the Pennsylvania income in that class. Adjust income and tax paid when required.
- Counting a balance due that will not be paid. Do not include that balance in Line 4b.
- Rounding Section III ratios too early. Calculate fractions or ratios to six decimal places.
- Claiming a trust's credit as a beneficiary. A beneficiary cannot claim credit for taxes paid by a trust when the other state treats the income as the trust's income rather than the beneficiary's.
Questions people ask
How much credit can I claim?
The credit on Section I, Line 6 is the lesser of adjusted tax paid to the other state on Line 4e or Line 3 multiplied by 3.07% on Line 5. The calculation starts with the lesser of tax due or assessed and tax paid, then applies required adjustments.
Can I claim credit for foreign or local taxes?
No. The instructions exclude taxes paid to foreign governments and local tax subdivisions within a state. For this credit, “state” includes U.S. states and commonwealths, the District of Columbia, Puerto Rico, and U.S. territories or possessions.
Does a W-2 count as the other state's tax return?
No. The required return is an actual tax return showing income subject to tax and the calculated income tax due. A W-2, Schedule K-1, or other withholding document does not replace it.
What if my credit comes from a pass-through entity?
Fill in the “Credit from a Pass-Through Entity” oval when the credit is reported as specified on a PA S corporation Schedule RK-1 or a partnership or limited liability company Statement of Resident Credits. You must still enter the other required information, including the entity's name in Section II.
Should I enter cents?
No. Use whole dollars. Drop amounts below $0.50 and round amounts of $0.50 or more up to the next dollar.