PA-41 Schedule B: 2024 PA-41 Schedule B - Dividend and Capital Gains Distributions Income (PA-41 B) (2024)
Pennsylvania · Pennsylvania DOR · Used for tax years 2024
PA-41 Schedule B reports dividend and capital gains distributions income of estates and trusts. It accounts for adjustments to federal dividend income and calculates the total to report on Line 2 of the Pennsylvania Fiduciary Income Tax Return, PA-41.
Who files this form
PA-41 Schedule B reports dividend and capital gains distributions income of estates and trusts.
- An estate or trust must complete and submit Schedule B with its PA-41 if it has any amounts on Lines 2 through 12, excluding subtotal Line 6.
- Schedule B is not required if total Pennsylvania-taxable dividend and capital gains distributions income equals the amount reported on federal Form 1041 and there are no amounts on those lines. The income must still be reported on Line 2 of PA-41.
What you'll need
Have these documents and details available, as applicable:
- PA-41 information: The estate or trust's complete name and nine-digit FEIN, or the decedent's Social Security number, as shown on PA-41.
- Federal income records: Form 1041, Forms 1099-DIV, federal Schedule D, and federal Schedules K-1.
- Pennsylvania Schedules RK-1: Submit all PA-20S/PA-65 Schedules RK-1 supporting partnership or PA S corporation dividend income. If an RK-1 is not supplied, include the applicable federal Form 1065 or Form 1120S Schedule K-1. For PA S corporation income, the instructions also require obtaining an RK-1 from the entity when only a federal K-1 is received.
- 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. For Line 8, include a statement with descriptions and amounts if there is more than one type of adjustment.
- Foreign income records: If applicable, the 2017 IRC Section 965 Transition Tax Statement and records of related cash payments received in prior years and the current tax year.
How to file
When required, submit PA-41 Schedule B with the estate or trust's PA-41, Fiduciary Income Tax Return. Include the supporting schedules and statements required for the income reported.
Add Lines 6, 7, 8, 9c, 10, 11, and 12. Enter the total on Schedule B, Line 13, and PA-41, Line 2.
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.
- Reducing dividend income by expenses: Do not include expenses incurred to realize dividend income as reduction adjustments on Line 4.
- Reporting capital gains distributions on the wrong schedule: Do not report them on PA-41 Schedule D. Pennsylvania treats them as dividend income, reported on Schedule B, Line 10.
- Omitting foreign repatriation cash payments because no tax form arrived: These payments must be reported as Pennsylvania dividend income even if the payer does not issue Form 1099-DIV.
- Skipping the PA-41 instructions: Read the Line 2 instructions on pages 22 and 23 of the PA-41 instructions before completing Schedule B.
Questions people ask
What amount goes on Line 1?
Enter the dividend income reported on Line 2a of the estate or trust's federal Form 1041.
What if the trust is not required to file a federal return?
The Line 8 instructions say to enter dividend income reported to the trust in Box 1 of all federal Forms 1099-DIV, plus any other taxable dividend income received by the trust.
Are all exempt-interest dividends excluded from Pennsylvania income?
Line 7 includes total exempt-interest dividends from Pennsylvania and non-Pennsylvania sources reported in Box 11 of federal Form 1099-DIV. Line 3 separately accounts for exempt-interest dividends from direct obligations of Pennsylvania, its political subdivisions, and the U.S. government, which are not taxable for Pennsylvania purposes.
How are capital gains distributions reported?
Pennsylvania taxes capital gains distributions as dividend income. Enter on Schedule B, Line 10, the capital gains distributions included as capital gains on federal Schedule D.