PA-41 Schedule DD: 2025 PA-41 Schedule DD - Distribution Deductions (PA-41 DD) (2025)
Pennsylvania · Pennsylvania DOR · Used for tax years 2025
PA-41 Schedule DD reports estate or trust income distributed or available for distribution to beneficiaries. It calculates distribution deductions and the total deduction entered on Line 8 of the PA-41 Fiduciary Income Tax Return.
Who files this form
PA-41 Schedule DD reports income distributed or available for distribution to estate or trust beneficiaries.
- An estate or trust with no distributions, or that is not distributing its income, is not required to complete Schedule DD.
- Do not complete Schedule DD for a taxable bankruptcy estate. It cannot distribute income to beneficiaries.
If a resident estate or trust has only individual beneficiaries who are Pennsylvania residents, only Column A must be completed. Other beneficiary and residency situations may require Column B as well.
What you'll need
Have the following information available to complete the schedule:
- PA-41, Fiduciary Income Tax Return: The estate or trust's name, identifying number, and income reported on Line 7.
- The governing instrument: Its terms determine which amounts must be distributed, retained, or set aside.
- Income and distribution information: Taxable income, qualifying nontaxable receipts, cash distributions, and the market value of property distributed during the tax year.
- Beneficiary information: Residency and whether each beneficiary is an individual, estate, trust, partnership, limited liability company, or PA S corporation.
- PA-41 Schedule N, Part 1, when applicable: Used for the separate calculation of Pennsylvania-source taxable income. The instructions use its Line 6 amount.
- Charitable set-aside information, if applicable: Amounts required to be permanently set aside and the terms governing their use.
Common mistakes
- Using the decedent's SSN when the estate has a FEIN: An estate with a FEIN should not use the decedent's Social Security number.
- Completing trust-only lines for an estate: If filing for an estate, enter zero on Lines 8a, 9a, and 10a, then proceed to Line 11a.
- Including excluded cash payments on Line 11a: Do not include amounts properly paid out of corpus as gifts or bequests of specific sums, or amounts required to be distributed in a prior tax year but not distributed then.
- Including specific property gifts on Line 12a: Do not include property distributed in-kind as a gift or bequest of specific property.
- Claiming a charitable deduction for amounts that could benefit a taxable beneficiary: The instructions caution that an amount cannot be set aside to benefit a taxable beneficiary. For example, an amount that might make up part of a guaranteed payment to a taxable beneficiary cannot be deducted.
Questions people ask
What is the difference between Columns A and B?
Column A calculates income as if the estate or trust were a resident, including income from all sources. Column B calculates income as if it were a nonresident, including only Pennsylvania-source income.
When must Column B be completed?
Complete Column B if the estate or trust is:
- A nonresident with Pennsylvania-source income or one or more Pennsylvania resident beneficiaries;
- A resident with one or more nonresident beneficiaries; or
- A resident with one or more estate, trust, partnership, limited liability company, or PA S corporation beneficiaries.
How many decimal places should I use for the percentages?
Calculate the percentages on Lines 6a and 7b to four decimal places. The instructions give this example: 0.755555 becomes 75.5555 percent.
When is the Line 17 adjustment needed?
A nonresident estate or trust with a resident beneficiary must use the Line 17 worksheet if it has not distributed its entire income to its beneficiaries. The adjustment calculates undistributed intangible income and non-Pennsylvania-source income. Otherwise, enter zero.
Where does the total deduction go?
Add Lines 15, 16, and 17. Enter the result on Schedule DD, Line 18, and on PA-41, Line 8.