PA-41 Schedule B: 2025 PA-41 Schedule B - Dividend and Capital Gains Distributions Income (PA-41 B) (2025)
Pennsylvania · Pennsylvania DOR · Used for tax years 2025
PA-41 Schedule B reports dividend and capital gains distributions income of estates and trusts. It includes adjustments to federal dividend income and calculates the total to report on Line 2 of the PA-41 Fiduciary Income Tax Return.
Who files this form
Estates and trusts use 2025 PA-41 Schedule B to report dividend and capital gains distributions income.
- Submit Schedule B with the PA-41 if there are any amounts on Lines 2 through 12, excluding subtotal Line 6.
- You do not have to submit Schedule B if total Pennsylvania-taxable dividend and capital gains distributions income equals the amount reported on federal Form 1041 and there are no amounts on Lines 2 through 12, excluding Line 6. You must still report the income on Line 2 of the PA-41.
What you'll need
Have the following available, as applicable:
- PA-41: Use the estate or trust’s name and nine-digit FEIN, or the decedent’s Social Security number, as shown on that return.
- Federal Form 1041 and Schedules K-1: These provide dividend income amounts for Lines 1 and 2.
- Federal Forms 1099-DIV: These provide exempt-interest dividend amounts and, for trusts not required to file a federal return, dividend income for Line 8.
- Federal Schedule D: Use it to identify capital gains distributions for Line 10.
- PA-20S/PA-65 Schedules RK-1: Submit these to support partnership and PA S corporation dividend income. If an RK-1 is not supplied, include the applicable federal Form 1065 or Form 1120S Schedule K-1. If you receive only a federal Form 1120S Schedule K-1, you must obtain an RK-1 from the entity.
- Supporting statements: Provide descriptions and amounts if Line 8 includes more than one type of adjustment. 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.
- Foreign-income records: If applicable, use the IRC Section 965 Transition Tax Statement and records of prior-year and current-year cash payments to complete Lines 9a through 9c.
How to file
When Schedule B is required, complete it and submit it with the estate or trust’s PA-41, Fiduciary Income Tax Return.
- Enter the name and identification number shown on the PA-41.
- Complete the applicable income and adjustment lines. Read the PA-41 Line 2 instructions on pages 22 and 23 before completing this schedule.
- Add Lines 6, 7, 8, 9c, 10, 11, and 12. Enter the total on Schedule B, Line 13, and on PA-41, Line 2.
- Include the required supporting schedules and statements.
The supplied text does not give a mailing address or electronic filing directions.
Common mistakes
- Using the decedent’s Social Security number when the estate has a FEIN: An estate with a FEIN should use that number.
- Deducting expenses on Line 4: Do not include expenses incurred to realize dividend income as reduction adjustments.
- Reporting capital gains distributions on PA-41 Schedule D: Report them as dividend income on Schedule B, Line 10, instead.
- Leaving out foreign repatriation cash payments because no Form 1099-DIV arrived: These payments must still be reported as dividend income for Pennsylvania purposes.
- Skipping Schedule B when adjustments apply: Submit it if any amounts appear on Lines 2 through 12, excluding subtotal Line 6.
Questions people ask
Are capital gains distributions treated as capital gains in Pennsylvania?
No. For Pennsylvania purposes, they are taxable as dividend income. Enter them on Schedule B, Line 10, not PA-41 Schedule D.
What if the trust is not required to file a federal return?
Use Line 8 to report dividend income from Box 1 of all federal Forms 1099-DIV, plus any other taxable dividend income received by the trust.
Are all exempt-interest dividends exempt from Pennsylvania tax?
The instructions identify exempt-interest dividends associated with direct obligations of Pennsylvania, its political subdivisions, or the U.S. government as not taxable for Pennsylvania purposes. Enter those amounts on Line 3. Line 7 requires total exempt-interest dividends from both Pennsylvania and non-Pennsylvania sources from Box 11 of Form 1099-DIV.
Where does the Schedule B total go?
Enter the total on Schedule B, Line 13, and carry it to Line 2 of the PA-41.