PA-41 Schedule NRK-1: 2025 PA-41 Schedule NRK-1 - Nonresident Schedule of Beneficiary Pass Through Income and Credits (PA-41 NRK-1) (2025)
Pennsylvania · Pennsylvania DOR · Used for tax years 2025
Pennsylvania PA-41 Schedule NRK-1 reports a beneficiary’s share of Pennsylvania-source income from an estate or trust. It also reports Pennsylvania nonresident tax withheld and other credits.
Who files this form
Estates and trusts must prepare and provide a 2025 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 beneficiaries that are:
- Individuals who were part-year Pennsylvania residents;
- Estates or trusts;
- PA S corporations;
- Partnerships; or
- LLCs classified as partnerships or PA S corporations for federal income tax purposes.
Both schedules for each of these beneficiaries must also be submitted with Form PA-41. Schedule NRK-1 reports Pennsylvania-source income and, where applicable, Pennsylvania nonresident tax withheld.
What you'll need
Have the following information and supporting schedules available:
- Beneficiary information: name, address, beneficiary type, and nine-digit SSN for an individual or FEIN for an entity.
- Estate or trust information: name, address, and nine-digit FEIN.
- Distribution information: the beneficiary’s year-end distribution percentage and Pennsylvania-source income.
- PA-41 Schedule N: used to determine withholding for nonresident beneficiaries subject to withholding and to obtain the income and withholding amounts described in the line instructions.
- PA-41 Schedule DD, when applicable: used in the income calculation for entity beneficiaries other than estates or trusts when Schedule N is not required.
- A separate credit statement, if applicable: identifying the types and amounts of unused EITC or OSTC credits passed through by a Qualified Subchapter S Trust.
If a foreign address does not fit in the available spaces, include a separate statement with the return showing the complete address.
How to file
Provide the required schedule copies to beneficiaries and submit the required copies with the estate’s or trust’s PA-41, Fiduciary Income Tax Return. The supplied text does not give a mailing address or e-file procedure. It refers filers to “Where To File” in the PA-41 instructions.
Enter whole-dollar amounts only. Beneficiaries must report amounts from Schedule NRK-1 on the appropriate Pennsylvania tax return.
To amend a schedule:
- Use a blank Schedule NRK-1 for the tax year being amended.
- 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 provide a copy to each beneficiary.
Do not send a copy of the original schedule. Corrections or changes to PA-41 require an amended PA-41 and an amended NRK-1 for each beneficiary, whether or not an amended federal Form 1041 was filed.
Common mistakes
- Substituting federal Schedule K-1. The department does not accept federal Form 1041 Schedule K-1 because it does not properly reflect Pennsylvania’s classified taxable income amounts.
- Using the wrong residency status. The fiduciary must determine beneficiary residency through reasonable means. Failure to keep an accurate beneficiary list may result in liability for a beneficiary’s tax, penalty, and interest if NRK-1 was provided when RK-1 should have been provided.
- Including excluded amounts in the distribution percentage. Do not include specific monetary gifts or bequests properly paid from corpus, amounts required to have been 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 unused EITC or OSTC credits as described in the instructions. Other restricted credits and other types of trusts are not permitted.
- Ignoring foreign-address formatting. The instructions warn that failure to follow the stated postal standards may delay refunds or correspondence needed to process the return.
Questions people ask
What income does NRK-1 report for a nonresident beneficiary?
It reports the beneficiary’s share of distributed or distributable Pennsylvania-source income. NRK-1 issued to nonresident beneficiaries should reflect only Pennsylvania-source income taxable to them.
What withholding rate applies to nonresident individuals, estates, and trusts?
Pennsylvania income tax must be withheld at 3.07 percent on their shares of distributed or distributable Pennsylvania-source income. Use PA-41 Schedule N to determine the withholding amount.
Where does a beneficiary report the tax withheld on line 2?
An individual beneficiary includes it on line 17 of PA-40. An estate or trust beneficiary includes it on line 14 of PA-41. Do not complete NRK-1 line 2 for beneficiaries other than individuals, estates, or trusts.
When should the “Final” oval be filled in?
Fill it in if this is the final year of distributions to the beneficiary from the estate or trust.