PA-41 Schedule RK-1: 2024 PA-41 Schedule RK-1 - Resident Schedule of Beneficiary Pass Through Income and Credits (PA-41 RK-1) (2024)
Pennsylvania · Pennsylvania DOR · Used for tax years 2024
PA-41 Schedule RK-1 reports estate or trust income and credits passed through to resident beneficiaries and certain entity beneficiaries. Amounts shown on the schedule must be reported on the appropriate Pennsylvania tax return.
Who files this form
Estates and trusts must prepare and give a PA-41 Schedule RK-1 to every Pennsylvania resident individual beneficiary. A copy for each beneficiary must accompany the estate or trust’s PA-41 Fiduciary Income Tax Return.
The estate or trust must prepare and provide both Schedule RK-1 and Schedule NRK-1 for each beneficiary that is:
- An individual who was a part-year Pennsylvania resident;
- An estate or trust;
- A PA S corporation;
- A partnership; or
- 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 return.
What you'll need
Have the following information and supporting materials available:
- The issuing estate or trust’s name, address and nine-digit FEIN.
- The beneficiary’s name, address, beneficiary type and residency status, plus an SSN for an individual or FEIN for an entity.
- Distribution information, including cash or property distributed and amounts credited, payable or required to be currently distributed.
- PA-41 Schedule DD and the PA-41 return, which contain figures used for the income and distribution-percentage calculations.
- A separate statement identifying the types and amounts of credits reported on Line 2, if applicable.
If a foreign address does not fit in the available spaces using the required format, include a separate statement with the complete address.
How to file
Give the beneficiary a copy of Schedule RK-1 and submit the required copy with the estate or trust’s PA-41 Fiduciary Income Tax Return. Include Schedule NRK-1 as well for beneficiaries who must receive both schedules.
The supplied text does not give a mailing address or e-filing directions. It refers readers to “Where To File” in the PA-41 instructions.
To amend a schedule, 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 return and give each beneficiary a copy. Do not send a copy of the original schedule.
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 by class.
- Providing the wrong residency schedule. The fiduciary must determine beneficiaries’ 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.
- Leaving amounts off the beneficiary’s 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 restricted credits that are not allowed. Only a Qualified Subchapter S Trust may pass through unused EITC or OSTC credits under these instructions. No other restricted credit types or trust types are permitted.
- Using an incorrect foreign-address format. The instructions warn that this may delay refunds or correspondence needed to process the return.
Questions people ask
Does a resident beneficiary report income from outside Pennsylvania?
Yes. Resident beneficiaries are subject to tax on their shares of the estate or trust’s distributed or distributable income, regardless of its source.
What goes on Line 1?
Line 1 reports the beneficiary’s income from the estate or trust. The instructions calculate it by multiplying the lesser of PA-41 Schedule DD, Line 3a or Line 14a, by the beneficiary’s year-end distribution percentage. Enter whole dollars only.
What credits can go on Line 2?
A Qualified Subchapter S Trust that received Educational Improvement Tax Credits (EITC) or Opportunity Scholarship Tax Credits (OSTC) may pass unused amounts through to its beneficiary. Provide a separate statement identifying each credit type and amount.
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.
Can a Pennsylvania schedule need correction even if no federal amended return was filed?
Yes. An amended PA-41 return and an amended RK-1 for each beneficiary must be filed to correct an error or reflect a change to the original PA-41 return, whether or not an amended federal Form 1041 was filed.