PA-40/PA-41 Schedule OC: 2024 PA Schedule OC - Other Credits (PA-40/PA-41 OC) (2024)
Pennsylvania · Pennsylvania DOR · Used for tax years 2024
Pennsylvania Schedule OC reports other (restricted) tax credits claimed by an individual or fiduciary for tax year 2024. It lists credits by type and totals the amounts to enter on Form PA-40 or Form PA-41.
Who files this form
Use the 2024 PA-40/PA-41 Schedule OC to claim the other restricted credits listed on the schedule as an individual or fiduciary.
Credits may be awarded directly to you, passed through to you by an entity, purchased from or assigned by another taxpayer, or carried forward from a prior year. Shareholders of PA S corporations and partners in partnerships enter their share of each credit from PA Schedule RK-1 or NRK-1.
What you'll need
The documents needed depend on how you received the credit:
- Awarded directly to you: Include a copy of the award certification letter.
- Passed through to you: Use your PA Schedule RK-1 or NRK-1. If you received more than one credit type, use the entity's breakdown statement to enter each amount on the correct line.
- Purchased or assigned: Include copies of documentation supporting the transfer of the credit to you.
- Carried forward from a prior year: Submit documentation of the original award and a statement showing amounts used in prior tax years.
- More than one credit description code applies to a line: Submit a statement describing the credits claimed.
For a pass-through credit, the entity must send copies of pages 1 and 2 of the award letter to the Bureau of Business Taxpayer Accounting, Account Maintenance Corporation Tax Division before filing its return. You may also provide that documentation with your individual, estate, or trust return to help processing.
How to file
Enter the amount of each credit you are using on its matching line, along with the applicable credit description code and Awardee Tax ID Number. For a restricted credit not listed, enter its type and amount on line 22.
Add lines 1 through 22 and enter the total on line 23. Also enter that total on Form PA-40, line 23, or Form PA-41, line 16. Include the required supporting documents.
The supplied text does not give a mailing address or e-file instructions for this schedule. It directs taxpayers to revenue.pa.gov for additional information and detailed credit instructions.
Common mistakes
- Using the wrong year's schedule: This schedule is for tax year 2024 only. For another year, refer to the department's website.
- Assuming an RK-1 or NRK-1 entry is enough to pass through a credit: Verify that the entity contacted the Bureau of Business Taxpayer Accounting, Account Maintenance Corporation Tax Division to pass through the credit. Listing it on your RK-1 or NRK-1 is not sufficient.
- Putting an out-of-state resident credit here: An out-of-state credit listed on PA Schedule RK-1, line 9, belongs on PA-40 Schedule G-L, Resident Credit for Taxes Paid to Other States.
- Leaving out an award letter: If you use a credit awarded directly to you, you must include a copy of the award certification letter.
- Sharing full Social Security numbers: If awardee documentation is provided to more than one pass-through entity owner, redact Social Security numbers to the last four digits.
Questions people ask
Can spouses claim these credits on a joint return?
Yes. For the 2024 return, spouses may file jointly when either or both claim credits listed on this schedule. Credits earned by one spouse may offset the other spouse's tax liability.
Which credit description code should I use?
Use CY for current-year credits awarded directly to you, PT for credits received from pass-through entities, PA for purchased or assigned credits, and CO for credits carried over from a prior year. If more than one code applies to a line, submit an explanatory statement.
Whose tax ID goes in the Awardee Tax ID Number column?
For an awarded business or farm reporting income on PA Schedule C or F, enter the owner's SSN. For purchased or assigned credits, enter the seller's FEIN or SSN. For pass-through credits, enter the entity's FEIN. Special rules for EITC and OSTC credits passed through multiple entities or through a QSST require the original pass-through entity's FEIN.
Should my total match my RK-1 or NRK-1 amounts?
If all credits on this schedule were passed through to you and the amounts do not include a resident credit from another state, line 23 should equal the sum of Total Other Credits from line 9 of your RK-1s or line 7 of your NRK-1s.