REV-798: Schedule C-2 - PA Dividend Deduction/Schedule X (REV-798) (Revision)
Pennsylvania · Pennsylvania DOR · Used for tax years 2024, 2025, 2026
REV-798 includes Schedule C-2, which calculates the Pennsylvania corporate dividend deduction reported on RCT-101, and Schedule X. Schedule X reports companies in which the taxpayer owns more than 50 percent of the stock and certain intangible or interest income from affiliated e
Who files this form
- Schedule C-2: All taxpayers claiming a Corporate Dividend Deduction on RCT-101, Page 2, Section C, Line 2A must complete this schedule. S corporations subject to Pennsylvania corporate net income tax must submit a schedule reflecting the federal Schedule C, Line 24 information.
- Schedule X, Section I: Corporate taxpayers answering yes to Question 7 on RCT-101, Page 1, Section A must report all corporate entities in which they own more than 50 percent of the stock. Report each entity’s name and FEIN, if applicable.
- Schedule X, Section II: Complete this section if electing to exclude qualifying intangible or interest income received from affiliated entities that added the income back on their RCT-101.
What you'll need
Have these forms and details available, as applicable:
- The corporation’s name, FEIN, and tax year beginning and ending dates.
- Federal Schedule C, including the deductions and dividend amounts used on Schedule C-2.
- Federal Form 8993: Attach it for Schedule C-2, Line 3.
- Federal Forms 5471 and 8992: Attach both if federal Schedule C, Line 17 includes any GILTI income.
- For Schedule X, Section I, the names and FEINs, if applicable, of corporate entities in which the taxpayer owns more than 50 percent of the stock.
- For Schedule X, Section II, each affiliated payor’s name, FEIN, and the intangible and/or interest income to be excluded. Attach additional statements as needed.
Common mistakes
- Using the wrong format: Fill in the form using all capital letters. Do not use dashes or slashes in any field. Enter dates as MMDDYYYY and amounts in whole dollars only.
- Counting dividends twice: On Schedule C-2, Line 6, do not include amounts already included above.
- Missing required attachments: Attach federal Form 8993 for Line 3. If federal Schedule C, Line 17 includes GILTI income, attach federal Forms 5471 and 8992.
- Making the affiliated-income election for the first time on an amended report: This annual election is available only on an original return. The department cannot accept it if first reported for that tax year on an amended corporate tax report.
Questions people ask
Where do I report the Pennsylvania dividend deduction on RCT-101?
Report the Schedule C-2 deduction on RCT-101, Page 2, Section C, Line 2A.
What percentages apply to foreign dividends on Lines 4 and 5?
For dividends listed on federal Schedule C, Lines 14, 16b, 16c, 17, 19, and 20, Line 4 uses 50 percent for less-than-20-percent-owned foreign corporations. Line 5 uses 65 percent for foreign corporations owned 20 percent or more.
Where do I report the income excluded through Schedule X?
Report the exclusion from Schedule X, Section II, Line 7 on RCT-101, Page 2, Section C, Line 2F.
Can I first make the affiliated-income exclusion election on an amended return?
No. Although the election is annual, it must be made on an original return. It cannot be accepted if first reported for that tax year on an amended corporate tax report.