PA-41 Schedule NRK-1: 2024 PA-41 Schedule NRK-1 - Nonresident Schedule of Beneficiary Pass Through Income and Credits (PA-41 NRK-1) (2024)
Pennsylvania · Pennsylvania DOR · Used for tax years 2024
PA-41 Schedule NRK-1 reports a beneficiary’s share of an estate or trust’s Pennsylvania-source income, Pennsylvania nonresident tax withheld, and other credits. Estates and trusts provide this schedule to beneficiaries and submit copies with their PA-41 Fiduciary Income Tax Retur
Who files this form
Estates and trusts must prepare and give a 2024 PA-41 Schedule NRK-1 to every nonresident individual beneficiary. A copy for each beneficiary must accompany the estate’s or trust’s PA-41, Fiduciary Income Tax Return.
The estate or trust must provide both Schedule RK-1 and Schedule NRK-1 to each beneficiary that is:
- An individual who was a part-year Pennsylvania resident.
- An estate or trust.
- A PA S corporation.
- A partnership.
- An LLC classified as a partnership or PA S corporation for federal income tax purposes.
Both schedules for these beneficiaries must also be submitted with the PA-41.
What you'll need
Have the following information and schedules available:
- The beneficiary’s name, address, beneficiary type, and SSN for an individual or FEIN for an entity.
- The issuing estate’s or trust’s name, address, and FEIN.
- The beneficiary’s residency status and year-end distribution percentage.
- PA-41 Schedule N for an individual, estate, or trust beneficiary’s share of Pennsylvania-source income and nonresident tax withheld.
- PA-41 Schedule N, or Schedule DD if Schedule N is not required, to calculate income for other entity beneficiaries.
If a Qualified Subchapter S Trust passes through unused Educational Improvement Tax Credits or Opportunity Scholarship Tax Credits on Line 3, provide a separate statement identifying each credit type and amount.
If a foreign address does not fit in the schedule’s spaces using the required format, include a separate statement with the complete address.
How to file
Give each required beneficiary a copy of Schedule NRK-1 and submit the required copies with the estate’s or trust’s PA-41, Fiduciary Income Tax Return. Amounts from the schedule must also be reported on the beneficiary’s appropriate Pennsylvania tax return.
Enter whole dollars only. Complete the beneficiary and estate or trust information, select one beneficiary-type oval, and report Pennsylvania-source income on Line 1. Report applicable nonresident tax withheld on Line 2 and permitted credits on Line 3.
To amend: Use a blank schedule for the tax year being corrected, fill in the “Amended Schedule” oval, and enter the corrected information. Submit it to the PA Department of Revenue with the amended PA-41 and give a copy to each beneficiary. Do not send a copy of the original schedule.
The supplied text refers filers to “Where To File” in the PA-41 instructions. It does not provide a mailing address or e-filing directions.
Common mistakes
- Using federal Schedule K-1 instead. The department does not accept federal Form 1041 Schedule K-1 because it does not properly reflect Pennsylvania-taxable income amounts.
- Failing to verify residency. The fiduciary must determine each individual, estate, or trust beneficiary’s residency through reasonable means. Failure to keep an accurate beneficiary list may expose the fiduciary to a beneficiary’s tax, penalty, and interest if NRK-1 was provided when RK-1 was required.
- Forgetting to report the amounts on a tax return. The form reminds beneficiaries to report schedule amounts on the appropriate Pennsylvania tax return.
- Including excluded amounts in the distribution percentage. Do not include specific cash gifts or bequests properly paid from corpus, amounts required to be distributed in a prior tax year, or the market value of specific property distributed in kind as a gift or bequest.
- Passing through ineligible restricted credits. Only a Qualified Subchapter S Trust may pass through the unused EITC or OSTC described in the instructions. Other restricted credits and other types of trusts are not permitted.
- Ignoring foreign address standards. The instructions warn that incorrect formatting may delay refunds or correspondence.
Questions people ask
What income does Schedule NRK-1 report?
It reports Pennsylvania-source income from an estate or trust. Schedules issued to nonresident beneficiaries should show only the Pennsylvania-source income taxable to those beneficiaries.
Is Pennsylvania tax withheld for nonresident beneficiaries?
Each nonresident individual, estate, or trust must have Pennsylvania income tax withheld at 3.07% of its share of distributed or distributable Pennsylvania-source income. The estate or trust uses PA-41 Schedule N to determine the withholding.
Where does a beneficiary report the withholding?
An individual reports the withheld amount on Line 17 of PA-40. An estate or trust reports it on Line 14 of PA-41.
Should Line 2 be completed for a partnership or PA S corporation beneficiary?
No. Line 2 is not completed for an entity beneficiary other than an estate or trust. Only schedules issued to nonresident individuals and nonresident estates or trusts should show nonresident tax withheld.
When should the “Final” oval be filled in?
Fill it in if this is the final year of distributions from the estate or trust to that beneficiary.