PA-40 Schedule A: 2024 PA Schedule A - Interest Income (PA-40 A) (2024)
Pennsylvania · Pennsylvania DOR · Used for tax years 2024
Pennsylvania PA-40 Schedule A reports interest income and adjustments used to determine PA-taxable interest income for 2024. The total is entered on Line 2 of Form PA-40.
Who files this form
For tax year 2024, Pennsylvania residents and part-year residents must include PA-40 Schedule A with their original PA-40 if they have amounts on Lines 2 through 15, excluding subtotal Lines 4 and 10.
If there are no amounts on those lines, do not include Schedule A. You must still report your interest income on Line 2 of PA-40. Nonresidents are not required to complete Schedule A.
If either spouse has amounts on the specified lines, both spouses must complete separate schedules, even if only one has those amounts. One joint schedule is allowed only when all interest income is earned jointly.
What you'll need
Depending on your income and adjustments, use:
- Your federal return, including Form 1040 Lines 2a and 2b, federal Schedule B, and Schedule 1.
- Federal Forms 1099-INT. If you are not required to file a federal return, the instructions use Box 1 amounts, along with other federally taxable interest, for Schedule A Line 3.
- Federal Forms 1099-R for applicable life insurance, annuity, or endowment distributions.
- PA Schedules RK-1 and federal Schedules K-1 for interest from PA S corporations and partnerships.
- A statement listing descriptions and amounts if you report more than one type of reduction adjustment on Line 8.
How to file
- Include the required Schedule A with your PA-40.
- Enter the taxpayer's name and Social Security number. For a joint return, use the primary taxpayer's name and Social Security number, including on a separate schedule reporting the spouse's income.
- Mark the taxpayer, spouse, or joint oval to identify whose income is reported.
- Report whole dollars: drop amounts below $0.50 and round amounts of $0.50 or more up to the next dollar.
- Transfer Line 16 to Line 2 of PA-40. If spouses file jointly with separate schedules, combine their Line 16 amounts.
If you discover an increase or decrease in Schedule A income after filing, include an amended Schedule A with Schedule PA-40 X. Explain the change in Section III on Page 2 of PA-40 X.
Common mistakes
- Assuming federal and Pennsylvania taxable interest are the same. The form cautions that the rules differ.
- Using the joint oval when either spouse has separately earned interest. Split jointly earned interest between the separate schedules and report only the appropriate person's share on each line.
- Including exempt-interest dividends on Line 2. The instructions specifically exclude these dividends and direct you to PA-40 Schedule B.
- Leaving out interest because no federal return is required. Line 3 must include Box 1 interest from all Forms 1099-INT and other federally taxable interest received.
- Reporting a negative Line 16 total. The instructions say this total cannot be negative. A negative result indicates a missing addition or excess adjustments.
Questions people ask
Do I still report interest if I do not need Schedule A?
Yes. Report your interest income on Line 2 of PA-40 even when Schedule A is not required.
Can my spouse and I use one Schedule A?
Only if all interest income is earned jointly. If some interest is earned separately and separate schedules are required, split the jointly earned interest and report each person's share on their own schedule.
Where do I report interest from direct U.S. government obligations?
Use Line 7 for interest from U.S. Treasury bonds, notes, bills, certificates, and savings bonds. Do not include on that line amounts reported on federal Schedules K-1 or Line 3 of federal Schedule B.
How do I report interest earned while I was a nonresident?
The instructions list interest earned while a nonresident as a reduction adjustment on Line 8. Provide a description, such as “Non-Residency Period Interest.”