PA-40/PA-41 Schedule OC: 2025 PA Schedule OC - Other Credits (PA-40/PA-41 OC) (2025)
Pennsylvania · Pennsylvania DOR · Used for tax years 2025
Pennsylvania’s 2025 PA-40/PA-41 Schedule OC reports other (restricted) tax credits claimed by an individual or fiduciary. It lists each credit’s type, award details and claim amount, and totals the credits for Form PA-40 or Form PA-41.
Who files this form
Use the 2025 PA Schedule OC to claim other restricted tax credits on Form PA-40 or Form PA-41.
The schedule covers credits awarded directly to you, passed through to you, purchased from or assigned by another taxpayer, or carried over from a prior year. PA S corporation shareholders and partnership partners enter their share of each credit from PA Schedule RK-1 or PA Schedule NRK-1.
What you'll need
The supporting documents 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 type separately. The pass-through 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.
- Purchased or assigned: Include documentation supporting the transfer of the credit to you.
- Carried forward: Submit documentation of the original award and a statement showing amounts used in prior tax years.
If available, use the official approval, award, assignment or certification letter to enter the award number and award date. If more than one award source code applies to a line, submit a statement describing the credits.
The department may also request the pass-through entity’s awardee documentation. Providing it with your individual, estate or trust return may help processing.
How to file
Complete the 2025 schedule using a separate entry for each credit type. Attach additional schedules if needed.
- Enter the credit type abbreviation printed on the schedule.
- Choose the award source code: CY for current-year credits awarded directly to you, PT for pass-through credits, PA for purchased or assigned credits, or CO for carryover credits.
- Enter the awardee tax ID. The awardee ID type field is optional. Enter the award number and date if available.
- Enter the amount of each credit you are using.
- Add the claim amounts on Line 11. Enter the total on PA-40, Line 23, or PA-41, Line 16.
Include the supporting documents required for your credits. The supplied text does not provide a mailing address or e-file submission instructions for this schedule.
Common mistakes
- Using the wrong year’s schedule: This version is for tax year 2025 only. The schedule was significantly redesigned, so review it carefully.
- Combining different credit types: Enter each type separately and attach additional schedules if needed.
- Assuming an RK-1 or NRK-1 completes the pass-through: Listing a credit on that schedule is not enough. Verify that the entity contacted the Bureau of Business Taxpayer Accounting, Account Maintenance Corporation Tax Division, to pass through the credit. Multiple tiers require a separate pass-through form for each pass-through.
- Allocating credits incorrectly: Credits must be awarded to each owner according to the owner’s distributive income percentage, or the pass-through form will be rejected.
- Putting an out-of-state credit on Schedule OC: An out-of-state credit listed on PA Schedule RK-1, Line 9, belongs on PA-40 Schedule G-L.
- Sharing full Social Security numbers: If awardee documentation is provided to more than one pass-through entity owner, redact SSNs to the last four digits.
Questions people ask
Can I get a summary of my restricted credits online?
Yes. You can request a Summary of Restricted Credits through myPATH at any time. It is available the same business day as a PDF in the Letters section to print or download.
Whose tax ID should I enter for a purchased or passed-through credit?
For a purchased or assigned credit, enter the seller’s FEIN or SSN. For a passed-through credit, enter the pass-through entity’s FEIN. Special rules for EITC and OSTC credits passed through multiple entities or a Qualified Sub-chapter S Trust require the original recipient entity’s FEIN.
Should Line 11 match my RK-1 or NRK-1 totals?
If all credits on the schedule came from pass-through entities and the schedule includes no resident credit from another state, Line 11 should equal the sum of Total Other Credits from your RK-1 forms, Line 9, or NRK-1 forms, Line 7.
Why might my refund take longer when I claim pass-through credits?
The department cannot process the credit allocation until it receives the entity’s award, the pass-through allocation form, and the awardee’s tax return electing to pass through the credit. The text says taxpayers should not expect a refund before the fall and that applicable interest will be paid on the refund owed.