PA-41/PA-41 OI: 2024 PA Fiduciary Income Tax Return/PA Schedule OI - Other Information (PA-41/PA-41 OI) (2024)
Pennsylvania · Pennsylvania DOR · Used for tax years 2024
The 2024 PA-41 is Pennsylvania’s fiduciary income tax return for estates and trusts. It reports income, gains, losses, deductions, tax liability, payments, and credits. PA Schedule OI collects additional information about the estate or trust, including trust type, certain income
Who files this form
The fiduciary, the person or organization responsible for the estate or trust, files PA-41. The filing rules include:
- An estate or trust that earned, received, or realized more than $33 of Pennsylvania-taxable income, or recorded a loss in any income class. This also applies to an irrevocable electing small business trust.
- A resident estate or taxable trust that received taxable income or a loss during its tax year.
- A nonresident estate or taxable trust that received Pennsylvania-source income or a loss.
- A nonresident estate or trust with a Pennsylvania resident beneficiary, even if it has no Pennsylvania-source income.
- A taxable bankruptcy estate of a Chapter 7 or 11 debtor created under Internal Revenue Code Section 1398.
- A grantor trust, including a Grantor Retained Annuity Trust or Grantor Retained Unitrust, that received taxable income, unless it is a settlor-revocable trust. Filing may be required even if no federal return is required.
- A charitable trust that received taxable income when a private individual benefits from its earnings, including a Charitable Remainder Annuity Trust or Charitable Remainder Unitrust.
- A revocable trust that became irrevocable and received taxable income.
- A qualified subchapter S trust that received S corporation income that must flow through to its income beneficiaries.
Some estates and trusts do not file PA-41. Examples include revocable trusts, funeral trusts, qualifying exclusively charitable trusts, and nonresident estates or trusts with neither Pennsylvania-source income or losses nor Pennsylvania resident beneficiaries.
What you'll need
Have the estate or trust's identifying information, the fiduciary's contact information, and the required Pennsylvania supporting schedules ready.
Depending on the return, supporting documents include:
- Completed schedules for the income or losses reported, PA Schedule DD for deductions, PA Schedule OC for other credits, and PA-40/PA-41 Schedule G-L to claim a credit for taxes paid to another state.
- PA-41 Schedules RK-1 for resident individual beneficiaries and NRK-1 for nonresident individual beneficiaries. Give each beneficiary a personalized schedule showing their share of 2024 Pennsylvania-taxable income. Entity beneficiaries receive both schedules.
- PA-20S/PA-65 schedules received from partnerships or PA S corporations. Resident estates or trusts submit Schedule RK-1; nonresident owners must submit both RK-1 and NRK-1 and a complete federal return with its supporting materials.
- For a nonresident estate or trust with a Pennsylvania resident beneficiary, federal Form 1041 and the resident state's fiduciary return. If that state has no income tax, include an affidavit certifying residency instead of the state return.
- For a taxable bankruptcy estate, a pro-forma PA-40 reporting the bankruptcy estate's income, deductions, and credits.
Schedule OI: Include a statement if the estate or trust receives income from or pays income to a foreign entity, or if the federal government made an additional income assessment in the last four years. List the FEIN, name, and address of each partnership, S corporation, LLC, estate, or trust from which income was received. Trusts must also give the grantor's name and address.
Keep the governing instrument available. It is not required with the return unless the department requests it.
Common mistakes
- Including losses in total income. Line 7 adds only positive amounts from Lines 1 through 6. Do not add losses. Fill in the loss oval when Line 3, 4, or 5 shows a loss.
- Leaving out supporting schedules. The form reminds filers to submit all required Pennsylvania supporting schedules.
- Marking more than one residency status. Fill in only one residency oval. If the estate or trust is a nonresident, enter its state.
- Ignoring the paper-form directions. Print in black ink, enter one letter or number per box, and fill in ovals completely.
- Using an amended return to change a resident trust to nonresident status. The instructions warn that the trust must instead file a Petition for Refund with the Board of Appeals for a decision and order.
- Assuming federal grantor-trust treatment makes a trust exempt. The instructions warn that federally classified grantor trusts often are not settlor-revocable trusts. Other grantor trusts are taxed under the Pennsylvania rules that apply to other trusts.
Questions people ask
What tax rate does the 2024 PA-41 use?
Multiply net Pennsylvania-taxable income on Line 9 by 3.07 percent, or 0.0307, to calculate the tax on Line 10.
Can an estate or trust pass tax credits to beneficiaries?
No. Estates and trusts cannot pass any tax credits through to their beneficiaries.
Can a loss in one income class reduce income in another?
No. An estate or trust cannot offset income in one Pennsylvania income class with a loss in another class. It also cannot carry income or losses back or forward to other tax years.
What can the estate or trust do with an overpayment?
Use Line 24 to request a refund check mailed to the estate or trust, or Line 25 to apply an amount to its 2025 estimated tax account. The total of Lines 24 and 25 must equal the overpayment on Line 23.
Does withholding eliminate a nonresident beneficiary's filing requirement?
No. A nonresident beneficiary must file a Pennsylvania tax return if they have at least $33 of Pennsylvania-source income, even if the estate or trust has already paid the tax through withholding.