PA-41 Schedule A: 2024 PA-41 Schedule A - Interest Income and Gambling and Lottery Winnings (PA-41 A) (2024)
Pennsylvania · Pennsylvania DOR · Used for tax years 2024
PA-41 Schedule A reports interest income and gambling and lottery winnings of Pennsylvania estates and trusts. It calculates the total to enter on Line 1 of the PA-41, Fiduciary Income Tax Return, including adjustments to federally reported interest income.
Who files this form
Estates and trusts use 2024 PA-41 Schedule A to report interest income and gambling and lottery winnings.
You must complete and submit Schedule A with the estate or trust’s PA-41 if there are amounts on any of Lines 2 through 14, excluding subtotal Lines 4 and 10.
You do not have to submit Schedule A if total Pennsylvania-taxable interest income equals the interest reported on federal Form 1041 and there are no amounts on those lines. You must still report the interest income on Line 1 of PA-41.
What you'll need
Have the following available, as applicable:
- PA-41: Use the same estate or trust name and nine-digit FEIN or decedent’s Social Security number.
- Federal Form 1041: Schedule A starts with the interest income reported on Line 1 of that return.
- Forms 1099-INT: For a trust not required to file a federal return, the instructions use Box 1 amounts plus other federally taxable interest for Line 3.
- PA Schedules RK-1 and federal Schedules K-1: Submit the PA-20S/PA-65 Schedules RK-1 supporting partnership and PA S corporation interest. If an RK-1 is not supplied, include the applicable federal Form 1065 or Form 1120S Schedule K-1. An estate or trust receiving only a federal Form 1120S Schedule K-1 must obtain an RK-1 from the entity; federal K-1 adjustments are permitted only in limited circumstances.
- Supporting statements: If income comes from more than one partnership or more than one PA S corporation, provide a statement listing each entity’s FEIN, name, and income amount. If Line 8 includes more than one type of adjustment, attach descriptions and amounts.
- Combined-return gambling statement: For an estate and related trust filing under an IRC Section 645 election, provide separate gross winnings, ticket and wagering costs, and net winnings or losses for the estate and trust.
How to file
When required, submit Schedule A with the estate or trust’s PA-41, Fiduciary Income Tax Return.
Enter the complete name and identification number as shown on PA-41. Complete the applicable income and adjustment lines. On Line 15, add Lines 10, 11, 12, 13, and 14, then enter the total on Line 1 of PA-41.
The supplied text does not give a mailing address or e-filing directions.
Common mistakes
- Using the wrong identification number: An estate with a FEIN should not use the decedent’s Social Security number.
- Including exempt-interest dividends on Line 2: The caution says not to include them there. See the PA-41 Schedule B instructions instead.
- Including K-1 U.S. obligation interest on Line 7: The instructions say not to include amounts from U.S. obligations reported on federal Schedules K-1 on that line.
- Deducting expenses to earn interest on Line 8: Do not include expenses incurred to realize interest income as a reduction on that line.
- Offsetting one filer’s gambling winnings with the other’s losses: For an estate and related trust filing a combined return, the estate’s losses or wagering costs cannot offset the trust’s winnings, or vice versa. If one has net winnings and the other a net loss, report only the net winnings on Line 14. If both have net losses, report zero.
Questions people ask
What if the trust does not have to file a federal return?
Enter on Line 3 the interest reported in Box 1 of all federal Forms 1099-INT, plus other federally taxable interest received by the trust, such as interest from U.S. government obligations.
Is interest from direct U.S. government obligations taxable by Pennsylvania?
The instructions say this interest is exempt for Pennsylvania purposes. Line 7 covers direct U.S. government obligations, including Treasury bonds, notes, bills, certificates, and savings bonds. Do not include amounts reported on federal Schedules K-1 on Line 7.
Which gambling and lottery winnings do resident estates and trusts report?
Report gambling winnings from sources both inside and outside Pennsylvania, and lottery winnings from all lotteries except noncash prizes from the Pennsylvania Lottery.
Which winnings do nonresident estates and trusts report?
Report gambling winnings from Pennsylvania sources and lottery winnings from sources within Pennsylvania, except noncash prizes from the Pennsylvania Lottery.
Where does the Schedule A total go?
Add Lines 10, 11, 12, 13, and 14 on Line 15. Enter that total on Line 1 of PA-41.