PA-40 Schedule O: 2025 PA Schedule O - Other Deductions (PA-40 O) (2025)

Who files this form

Complete and include Schedule O with your original 2025 PA-40 if you or your spouse want to claim a deduction for contributions to:

• A Medical Savings Account.
• A Health Savings Account.
• An IRC Section 529 Qualified Tuition Program.
• An IRC Section 529A Pennsylvania ABLE Savings Program.

You must also complete Schedule O if you or your spouse claim a student loan interest deduction.

If you discover an increase or decrease in these deductions after filing, include an amended Schedule O with Schedule PA-40 X. Explain the change in Section III on page 2 of Schedule PA-40 X.

When it's due

For tax year 2025, include only 529 tuition program and Pennsylvania ABLE contributions made through December 31, 2025.

Contributions made after December 31, 2025, and before April 15, 2026, may only be included on the following tax year's return, for 2026. This is a contribution timing rule, not a stated filing deadline for Schedule O.

What you'll need

Have the following information ready:

• The taxpayer's name and Social Security number. For a joint return, use the name and Social Security number shown first on the PA-40.
• Each 529 or Pennsylvania ABLE beneficiary's name and Social Security number, with contribution amounts listed separately for the taxpayer and spouse.
• Medical Savings Account and Health Savings Account contributions allowed for federal income tax purposes.
• The student loan interest deduction allowed for federal income tax purposes.
• Income reported on PA-40 Line 9, calculated separately for the taxpayer and spouse.

Required attachments:

• If claiming Medical Savings Account or Health Savings Account deductions on Lines 5 or 6, include copies of federal Form 1040, pages 1 and 2, and federal Schedule 1 with your PA-40.
• If claiming deductions for more than 10 tuition program beneficiaries or more than three ABLE beneficiaries, include a statement listing each beneficiary's name, Social Security number, and deduction amount by contributor.

Common mistakes

• Counting contributions in the wrong year. For 529 tuition and Pennsylvania ABLE deductions, include only contributions made through December 31 of the tax year.
• Leaving out a refund contribution. Include any 529 contribution reported and made through the immediately preceding tax year's PA-40 Schedule P.
• Exceeding the tuition program limit. Do not enter more than $19,000 per beneficiary in either the taxpayer or spouse column.
• Overlooking ABLE limits. For 2025, total contributions to any one Pennsylvania ABLE account by all contributors cannot exceed $19,000. A contributor's total contributions to one or more accounts also cannot exceed $19,000.
• Exceeding the student loan interest limit. The deduction may not exceed $2,500 per taxable year.
• Reporting inconsistent income totals. The taxpayer and spouse amounts on Schedule O Line 9 must add up to PA-40 Line 9.

Questions people ask

Can I deduct student loan interest for 2025?

Yes. The text allows a student loan interest deduction of up to $2,500 per taxable year. On Line 7, enter the deduction allowed for federal income tax purposes.

Whose name goes on a joint Schedule O if only my spouse has deductions?

Use the primary taxpayer's name and Social Security number, meaning the person shown first on the PA-40, even if only the spouse has deductions.

How should I round amounts?

Use whole dollars. Drop amounts below $0.50 and round amounts of $0.50 or more up to the next dollar.

Can my deduction exceed my reported income?

Schedule O limits the deduction separately for the taxpayer and spouse. On Line 10, enter the smaller of Line 8, total deductions, or Line 9, reported income, for each person.

Where does the final deduction go on my PA-40?

Add the taxpayer and spouse amounts from Schedule O Line 10. Enter the total on Schedule O Line 11 and PA-40 Line 10.

Official sources

• https://www.pa.gov/content/dam/copapwp-pagov/en/revenue/documents/formsandpublications/formsforindividuals/pit/documents/2025/2025_pa-40o.pdf