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Pennsylvania Free Printable 2020 PA Fiduciary Income Tax Return/PA Schedule OI - Other Information (PA-41/PA-41 OI) for 2021 Pennsylvania PA Fiduciary Income Tax Return

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PA Fiduciary Income Tax Return
2020 PA Fiduciary Income Tax Return/PA Schedule OI - Other Information (PA-41/PA-41 OI)

PA-41 2004110058 PA Fiduciary Income Tax Return PA-41 05-20 (FI) PA Department of Revenue START HERE 2020 OFFICIAL USE ONLY PLEASE PRINT IN BLACK INK. ENTER ONE LETTER OR NUMBER IN EACH BOX. FILL IN OVALS COMPLETELY. Fiduciary’s Daytime Telephone Number Federal Employer Identification Number Decedent’s Social Security Number ➜ PLEASE WRITE IN THE FEIN & SOCIAL SECURITY NUMBER ABOVE Extension Requested Amended PA-41 Name of Estate or Trust (See Online Detailed Instructions) Fiscal-Year Filer FY beginning __/__/__ Name and Title of Fiduciary and ending State ZIP Code Final Return MM/DD/YY F Enter Ending Date: __/__/__ Country Code Dollars DOLLARS F Submit all required Pennsylvania supporting schedules. If Line 3, 4 or 5 is a LOSS, fill in the oval next to the amount. 1. INTEREST INCOME and GAMBLING and LOTTERY WINNINGS. . . . . . . . . . . . . . . . . . . . 1. 2. DIVIDEND AND CAPITAL GAINS DISTRIBUTIONS INCOME. . . . . . . . . . . . . . . . . . . . . . . 2. 3. NET INCOME or LOSS from the Operation of a Business, Profession or Farm. .................................................................... LOSS 4. NET GAIN or LOSS from the Sale, Exchange or Disposition of Property. .................................................................... LOSS 5. NET INCOME or LOSS from Rents, Royalties, Patents or Copyrights. .................................................................... LOSS Cents CENTS 3. 4. 5. 6. ESTATE or TRUST INCOME. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6. 7. TOTAL INCOME. Add only the positive income amounts from Lines 1, 2, 3, 4, 5 and 6. Do not add losses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. 8. DEDUCTIONS from PA SCHEDULE DD. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8. 9. NET PA-TAXABLE INCOME. Subtract Line 8 from Line 7. . . . . . . . . . . . . . . . . . . . . . . . . . . 9. 10. PA TAX LIABILITY. Multiply Line 9 by the tax rate 3.07 percent (0.0307). . . . . . . . . . . . . . . . 10. 11. TAX WITHHELD FOR NONRESIDENT BENEFICIARIES. See the instructions. . . . . . . . . . 11. 12. TOTAL PA TAX LIABILITY. Add Lines 10 and 11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12. 13. 2020 ESTIMATED PAYMENTS and CREDITS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13. 14. NONRESIDENT TAX WITHHELD from PA SCHEDULE(S) NRK-1. . . . . . . . . . . . . . . . . . . . 14. 15. TOTAL CREDIT for TAXES PAID by PA RESIDENT ESTATES or TRUSTS to OTHER STATES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15. 16. TOTAL OTHER CREDITS from PA SCHEDULE OC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16. 17. PA INCOME TAX WITHHELD. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17. 18. TOTAL PAYMENTS and CREDITS. Add Lines 13, 14, 15, 16 and 17. . . . . . . . . . . . . . . . . . 18. 19. USE TAX. See the instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19. FC EC 2004110058 Reset Entire Form MM/DD/YY Residency Status. Fill in only one oval. R Pennsylvania Resident N Nonresident If “N”, Name of State Address of Fiduciary (Street Number and Name, etc.) City or Post Office __/__/__ MM/DD TOP OF PAGE NEXT PAGE PRINT PA-41 2004210056 PA Fiduciary Income Tax Return PA-41 05-20 (FI) PA Department of Revenue START Name as shown on PA-41 HERE ➜ 2020 Federal EIN or Decedent’s Social Security Number 20. TAX DUE. If the total of Line 12 and Line 19 is more than Line 18, enter the difference here. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20. 21. PENALTIES AND INTEREST. See the instructions for additional information. If including REV-1630F, fill in oval. . . . . . . . . . . . . . . . . . 21. 22. TOTAL PAYMENT – Add Lines 20 and 21. Make check or money order payable to PA DEPT. OF REVENUE. See the instructions on HOW TO PAY.. . . . . . . . . . . . . . . . . . . . . 22. 23. OVERPAYMENT. If Line 18 is more than the total of Lines 12, 19 and 21, enter the difference here. The total of Lines 24 and 25 must equal Line 23 . . . . . . . . . . . . . . . . . . . 23. 24. REFUND – Amount of Line 23 you want as a check mailed to the estate or trust. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . REFUND 24. 25. CREDIT – Amount of Line 23 you want as a credit to the 2020 estimated tax account of the estate or trust. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25. Signature(s). Under penalties of perjury, I have examined this return, including all accompanying schedules and statements, and to the best of my belief, it is true, correct and complete. Signature of Fiduciary Date Please remember to sign your PA-41 after printing. Name of preparer or his or her company name, based on all information on this return of which the preparer has any knowledge. Firm FEIN Preparer’s Name and Telephone Number PA SCHEDULE OI - Other Information PA-41 OI 05-20 (FI) MM/DD/YY Preparer’s PTIN 2020 YES NO 1. Is this a revocable trust? 2. Is this an irrevocable trust? 3. Does the estate/trust receive income from or pay income to a foreign entity? If “Yes,” include a statement with this return. See the PA-41 Schedule OI instructions for what to include with that statement. 4. Has the federal government made an additional assessment on the income of this estate/trust in the last four years? If “Yes,” include a statement with this return explaining such adjustments. See the PA-41 Schedule OI instructions. 5. Did this estate/trust receive income from a partnership, S corporation, LLC, or another estate/trust? If “Yes,” list below all such partnerships, S corporations, LLCs, estates/trusts, showing the FEIN, name and address of each. If additional space is necessary, include a supplemental statement (in the same format) with this return. FEIN Name Address a. b. c. d. e. f. 6. If this return is for a trust, state the name and address of the grantor below. Name of Grantor: 2004210056 Reset Entire Form PREVIOUS PAGE Address of Grantor: 2004210056 NEXT PAGE PRINT 2020 Instructions for Form PA-41 Pennsylvania Fiduciary Income Tax Return PA-41 IN 05-20 WHAT’S NEW PRIVACY NOTIFICATION Act 13 of 2019 changed the requirement of estates and trusts filing an election under IRC Section 645 to file separate PA-41, Fiduciary Income Tax Returns, for Pennsylvania personal income tax purposes. For tax years beginning after Dec. 31, 2019, estates and trusts may file a joint return for Pennsylvania personal income tax purposes. See the Income Tax Returns of Estates and Trusts Electing to File One Return Based Upon an Election Filed Under IRC Section 645 on Page 13 for additional information. Also see the instructions for Lines 1, 3, 4 and 5 on Pages 22, 23, 24 and 25, respectively. By law (42 U.S.C. §405(c)(2)(C)(i); 61 Pa. Code §117.16), the department has the authority to use the Social Security number (SSN) to administer the Pennsylvania personal income tax and other Commonwealth of Pennsylvania tax laws. In addition, as a result of the insertion of the Country Code field on the PA-41, Fiduciary Income Tax Return, the Foreign Address instructions beginning on Page 19 have been revised. Furthermore, the instructions on Page 20 for the Federal Employer Identification Number and Decedent's Social Security Number fields have been updated. GENERAL INFORMATION PURPOSE OF FORM The fiduciary of a resident estate or trust uses the PA-41, Fiduciary Income Tax Return, to report: • The income, deductions, gains, losses, etc., of the estate or trust; • The income that is either accumulated or held for future distribution or distributed currently to the beneficiaries; and • Any income tax liability of the estate or trust. The fiduciary of a nonresident estate or trust uses the PA41 Fiduciary Income Tax Return to report: • Pennsylvania-source income when there are no resident beneficiaries; • Worldwide income when the estate or trust has Pennsylvania-source income and resident beneficiaries; or • Any income tax liability of the estate or trust. TAX CREDITS Estates and trusts cannot pass through any tax credits to its beneficiaries. www.revenue.pa.gov The department uses the SSN to identify individual taxpayers and verify their incomes. The department also uses the SSN to administer a number of tax-offset and child-support programs that federal and Pennsylvania laws require. The commonwealth may also use the SSN in exchange-oftax information agreements with governmental authorities. Except for official purposes, Pennsylvania law prohibits the commonwealth from disclosing information that individuals provide on income tax returns, including the SSN(s). WHO MUST FILE An estate or trust must file the PA-41, Fiduciary Income Tax Return, if any of the following apply: • The fiduciary of an irrevocable electing small business trust received or realized more than $33 of Pennsylvania-taxable income or records a loss in any class of income; • An estate or trust earned, received or realized more than $33 of Pennsylvania-taxable income or records a loss in any class of income; • The estate is a taxable bankruptcy estate of a Chapter 7 or 11 bankruptcy debtor created under Section 1398 of the Internal Revenue Code of 1986; • The fiduciary of a resident estate or taxable trust received taxable income/loss during its taxable year; • The fiduciary of a nonresident estate or trust received taxable income and the estate or trust has a Pennsylvania resident beneficiary; • The fiduciary of a grantor trust including a Grantor Retained Annuity Trust (GRAT) or Grantor Retained Unitrust (GRUT) received taxable income during its taxable year regardless of whether it is required to file a federal income tax return or not, unless the grantor trust is a settlor-revocable trust; • The fiduciary of a charitable trust including a Charitable Remainder Annuity Trust (CRAT) and Charitable Remainder Unitrust (CRUT) received taxable income during its taxable year, regardless of whether it is required to file a federal income tax return or not, when PA-41 1 any private individual benefits from the earnings of the trust; • The fiduciary of a nonresident estate or taxable trust received Pennsylvania-source income/loss during its taxable year; • The fiduciary of a nonresident taxable trust including grantor trusts, GRATs, GRUTs, CRATs and CRUTs received Pennsylvania-source income/loss; • The fiduciary of a revocable trust that becomes an irrevocable trust (settlor of a revocable trust dies or the terms of trust are altered to make the trust irrevocable) received taxable income; or • The fiduciary of a qualified sub-chapter S trust (QSST) received income from an S corporation that must flow through to resident or nonresident income beneficiaries. WHO DOES NOT FILE A PA-41 FIDUCIARY INCOME TAX RETURN An estate or trust does not file the PA-41, Fiduciary Income Tax Return, if it is one of the following: • A charitable trust exclusively for religious, charitable, scientific, literary or educational purposes; • A revocable trust-any revocable trust (grantor or settlorrevocable); • A nonresident estate or trust with no Pennsylvaniasource income/loss AND no Pennsylvania resident beneficiaries; • A funeral trust; • A resulting or constructive trust created by operation of law; • A trust created exclusively for the benefit of creditors except a taxable bankruptcy estate of a Chapter 7 or 11 bankruptcy debtor created under Section 1398 of the Internal Revenue Code of 1986; • A principal and agent relationship; • A business trust or real estate investment trust; • A trust created exclusively for the benefit of employees, their families, or appointees under an employee-benefit plan; • A pension trust or profit-sharing trust; • A trust that is a common trust fund for federal income tax purposes; or • A trust created by an entity or enterprise other than a Pennsylvania personal income tax taxpayer: ◦ For which no part of the income or corpus may possibly benefit any beneficiary who is a Pennsylvania personal income tax taxpayer; and ◦ For which no part of the property consists of property transferred to it (or another trust) by any Pennsylvania personal income tax taxpayer. NOTE: For purposes of the last item above, a Pennsylvania personal income tax taxpayer means 2 PA-41 any individual, estate, trust, partnership, PA S corporation or entity formed as a limited liability company that is classified as a partnership or PA S corporation for federal income tax purposes. SPECIAL RULES Before preparation of the PA-41, Fiduciary Income Tax Return, determine all of the following under the terms of the governing instrument and the laws applicable to the administration of estates or trusts: • Whether an item of receipt or expense is allocable to corpus or income; • What part, if any, of the undistributed net income of a trust (for administrative purposes) is required to be added to corpus; • Whether property distributed in kind is distributed as a gift or bequest of specific property; • Whether an amount is properly paid out of corpus as a gift or bequest of a specific amount of money; • Whether payment of a distribution is directed without reference to the existence or absence of income; and • Whether the estate or trust must distribute an amount, and whether it pays such amount out of income or corpus, or it may pay such amount out of either income or corpus. When the governing instrument specifically provides the source from which amounts are to be permanently set aside or used, the provisions of the governing instrument control the distribution and calculation of income. The governing instrument determines when amounts, including particular items of income received by the estate or trust, are set aside or when those amounts are used for specific purposes. In the absence of specific provisions in the governing instrument, the amount shall be deemed to consist of the same proportion of each class of the items of income of the estate or trust as the total of each class bears to the total of all classes. In determining whether income derived from a partnership, PA S corporation, estate or trust is required to be distributed currently, or is distributed or credited to a beneficiary, the excess of the Pennsylvania-taxable income derived through such partnership, PA S corporation, estate or trust over the amount of distributions or withdrawals therefrom shall be considered to be income that is required to be retained, accumulated or set aside. Amounts disbursed to pay taxes measured by the income for another taxable period may not be treated as set aside from current income. Generally, amounts disbursed to pay nondeductible trustee commissions, legal and accounting expenses and other current expenses that do not reduce the amount of taxable or nontaxable income or gain of the trust for the taxable year www.revenue.pa.gov shall be treated as nontaxable income or gain which is required to be accumulated, retained or set aside. organization for which a donor may receive a charitable contribution deduction for federal income tax purposes. This is true as long as total distributions for the year do not equal or exceed the excess of total taxable and nontaxable income received by the estate or trust for the taxable year over total taxable and nontaxable income received by the estate or trust for the taxable year, which is required to be accumulated, retained or set aside for future distribution. IMPORTANT: CRATs, charitable remainder trusts, CRUTs and pooled income fund trusts of public charities are ordinary trusts that are not exempt from PA-41, Fiduciary Income Tax Return, filing requirements or taxation. These types of charitable trusts must file a Pennsylvania trust tax return, pay tax on any undistributed income, and report the income to the beneficiary on the same basis as any other ordinary trust. However, if total distributions for the year do equal or exceed the excess of total taxable and nontaxable income received by the estate or trust for the taxable year over total taxable and nontaxable income received by the estate or trust for the taxable year, which is required to be accumulated, retained or set aside for future distribution, the amounts shall be treated as distributions by the estate or trust and beneficiaries. If a trust consists in part of intangible investment property, such as stock or securities, or tangible investment property, such as real estate located outside Pennsylvania transferred to it by a person who at the time of the transfer was a nonresident, the income or gains realized from such property shall be excludable from tax by the trust. DEFINITIONS CHARITABLE TRUST A charitable trust is one operated exclusively for religious, charitable, scientific, literary or educational purposes. A trust is a charitable trust only if all of the net earnings for the taxable year and remaining life of the trust are for distribution for such purposes. No part of the earnings of a charitable trust may benefit any private individual. Trusts for the general care, maintenance or improvement of public or church cemeteries are charitable trusts. However, trusts for the care, maintenance, or improvement of the burial lots of the settlor, testator or his/her family are not charitable trusts. CHARITABLE REMAINDER ANNUITY TRUSTS (CRATS) AND CHARITABLE REMAINDER UNITRUSTS (CRUTS) Charitable Remainder Annuity Trusts (CRATs) and Charitable Remainder Unitrusts (CRUTs) are trusts consisting of assets that are designated for a charitable purpose and are paid over to the trusts after the expiration of a life estate or intermediate estate. CORPUS The corpus is principal or property of an estate or trust as opposed to the income it earns, receives or realizes from its corpus. ESTATE For Pennsylvania personal income tax purposes, an estate is the estate of a deceased individual. An estate also includes a taxable bankruptcy estate of a Chapter 7 or 11 bankruptcy debtor created under Section 1398 of the Internal Revenue Code of 1986. The Commonwealth is authorized to tax such estates under Title 11, Section 346(a) of the U.S. Bankruptcy Code. An estate does not include the estate of a minor or incompetent. The guardian of a minor or incompetent is required to file income tax returns for such individuals on Form PA-40. FIDUCIARY A fiduciary is an individual, corporation or association holding assets in trust for another party, often with the legal authority and duty to make decisions regarding financial matters on behalf of the other party. FUNERAL TRUST A funeral trust is a trust that arises from a contract with a person engaged in the business of providing funeral or burial services or property for these services, with the trust assets designated to pay the funeral expenses of the individual for whom the trust is established. The trust assets cannot be distributed until the death of that individual. Funeral trusts are revocable trusts and are not required to file a PA-41, Fiduciary Income Tax Return. However, income on the trust assets is taxed to the taxpayer who contributed the assets to the trust. See the PA Personal Income Tax Guide – Estate, Trusts and Decedents section for more information. • Any part of the trust’s undistributed income may benefit any private individual in subsequent years; or GOVERNING INSTRUMENT The governing or trust instrument is a written document that defines and describes the nature of and provides instructions for the administration and settlement of an estate or trust. • Any part of the trust's current income is required under the governing instrument or any applicable state law to be distributed currently or is actually distributed or credited to a beneficiary that is not a charitable The document can be a deed of trust, will, written trust agreement, an instrument creating or exercising a power of appointment or a dispositive, appointive or nominative instrument of a similar type. Federally qualified CRATs and CRUTs are not charitable trusts if during the current taxable year: www.revenue.pa.gov PA-41 3 The department does not require a copy of the governing instrument with the PA-41, Fiduciary Income Tax Return, but the estate or trust must submit it upon request. GRANTOR RETAINED ANNUITY TRUSTS (GRATS) AND GRANTOR RETAINED UNITRUSTS (GRUTS) GRATs and GRUTs are types of grantor trusts where the grantor retains an interest in receiving income assets of the trust. IMPORTANT: GRATs and GRUTs are ordinary trusts that are not exempt from PA-41, Fiduciary Income Tax Return, filing requirements or taxation. These types of trusts must file a Pennsylvania trust tax return, pay tax on any retained earnings, and report the income to the beneficiary on the same basis as any other ordinary trust. ELECTING SMALL BUSINESS TRUST An electing small business trust is any trust that can hold stock of an S corporation. The term means any trust if: • It does not have as a beneficiary any person other than an individual, estate or an organization described in IRC §170(c)(2) and 170(c)(5); • No interest in such trust was acquired by purchase; and • An election is made by the trustee applicable to the trust. GRANTOR TRUST A grantor trust is a trust in which some or all of the assets are considered to be owned by the grantor for federal income tax purposes. However, Pennsylvania law varies from federal law regarding grantor trusts and federal rules do not apply for Pennsylvania fiduciary income tax purposes. Pennsylvania law imposes the fiduciary income tax on grantor trusts according to the same Pennsylvania personal income tax rules that apply to irrevocable trusts, unless the grantor trust is a revocable trust. See Revocable Trust. The beneficiaries of the trust are taxed on income required to be distributed currently or actually distributed or credited to them. The grantor trust is taxable on the remainder. IRREVOCABLE TRUST An irrevocable trust is a trust that cannot be modified, amended, changed or terminated by the grantor. NONRESIDENT BENEFICIARY A nonresident beneficiary is a person who is not a resident beneficiary. See Resident Beneficiary. NONRESIDENT ESTATE A nonresident estate is any estate that is not a Pennsylvania resident estate. NONRESIDENT TRUST A nonresident trust is any irrevocable trust that is not a Pennsylvania resident trust. An inter vivos trust or a testamentary trust created by a resident can become a nonresident trust if the settlor is no longer a resident or is deceased, and the trust lacks sufficient contact with 4 PA-41 Pennsylvania to establish nexus. Any one of the following conditions provides sufficient contact for a resident trust to remain a resident trust or to requalify as a resident trust: • The trust has a resident trustee; • Any trust administration occurs in Pennsylvania; • Trust assets include: ◦ Real or tangible personal property located within Pennsylvania, or ◦ Stock, securities or intangible personal property, evidenced by the documents, certificates or other instruments that are physically located, or have a business situs within Pennsylvania; or • The situs of the trust is Pennsylvania as provided in 20 PA. C.S. §7708. PASS-THROUGH ENTITY A pass-through entity for PA personal income tax purposes is: • A partnership. A partnership is any unincorporated entity, including a domestic or foreign general partnership, joint venture, limited partnership, limited liability partnership, business trust or investment club that for federal income tax purposes is classified as a partnership. • A Pennsylvania S corporation. A Pennsylvania S corporation is any corporation that has a valid election in effect under Subchapter S of Chapter 1 of the Internal Revenue Code of 1986, as amended to January 1, 2005 and has not elected to not be treated as an S corporation for Pennsylvania tax purposes. A qualified subchapter S subsidiary owned by a Pennsylvania S corporation shall be treated as a Pennsylvania S corporation without regard to whether an election to not be treated as an S corporation has been made with respect to the subsidiary. • A limited liability company classified as a partnership or S corporation for federal income tax purposes. IMPORTANT: A pass-through entity does not include an estate or trust for Pennsylvania personal income tax purposes PENNSYLVANIA-SOURCE INCOME Pennsylvania-source income is income derived by the estate or trust from sources within Pennsylvania. For estates and trusts, that income is generally derived from: • Operation of a business or ownership in a partnership, S corporation or limited liability company that has operations wholly or partially within Pennsylvania; • Ownership of rental property or a partnership, S corporation or limited liability company that owns rental property located in Pennsylvania; • Sales of tangible property located in Pennsylvania; • Gambling and lottery winnings from a wager placed in Pennsylvania; and/or • Estate or trust income from another estate or trust that has income from any of the above sources. www.revenue.pa.gov For additional information on Pennsylvania-source income and what types of income nonresidents should report, see the PA Personal Income Tax Guide – Brief Overview and Filing Requirements for Pennsylvania Income Tax Returns section. PERSON A person is an individual, estate, trust, association, partnership or corporation, resident or nonresident, and the plural as well as the singular number. PRO-FORMA PA-40 PERSONAL INCOME TAX RETURN A pro-forma PA-40 Personal Income Tax Return is a return completed on behalf of the bankruptcy debtor that includes the income (loss), deductions and credits of the bankruptcy estate. The pro-forma PA-40 is required to be included with the PA-41 of the bankruptcy estate. It does not include any income (loss), deductions or credits that must remain with the taxpayer who completes a PA-40 to report that income. QUALIFIED SUBCHAPTER S TRUST (QSST) A QSST is a type of trust for federal income tax purposes that is permitted to become a shareholder of an S corporation if the current individual income beneficiary of the trust elects to be treated as the owner of the trust for purposes of the Internal Revenue Code. For PA personal income tax purposes, the S corporation income will pass through the S corporation to the trust and will be distributed from the trust to the trust income beneficiary. RESIDENT BENEFICIARY A resident beneficiary is a person who is domiciled in Pennsylvania unless the person maintains no permanent place of abode in Pennsylvania and does maintain a permanent place of abode elsewhere and spends no more than 30 days of the taxable year in Pennsylvania; or is a person who is not domiciled in Pennsylvania but maintains a permanent place of abode in Pennsylvania and spends more than 183 aggregate days of the taxable year in Pennsylvania. The fiduciary of an estate or trust must maintain an accurate list of beneficiaries. RESIDENT ESTATE OR TRUST A resident estate is the estate created by an individual who at the time of his or her death was a Pennsylvania resident. A resident estate also includes a taxable bankruptcy estate where the debtor is a Pennsylvania resident on the date of the filing of the bankruptcy petition. A resident trust is any of the following: • A trust created by the will of a decedent who, at the time of death, was a Pennsylvania resident individual; • A trust consisting of property transferred to it or another trust by a settlor or other individual, estate or trust that at the time of such transfer, was a Pennsylvania resident; or • A trust of a person who, at the time of such creation, was a Pennsylvania resident. www.revenue.pa.gov IMPORTANT: A resident trust that believes that it should be a nonresident trust cannot file an amended return to declare itself to be a nonresident trust. The trust must file a Petition for Refund with the Board of Appeals to have a decision and order issued for changing the residency status. See When to Amend the PA-41, Fiduciary Income Tax Return, for additional information. REVOCABLE TRUST A revocable trust is one that can be created by anyone, and at a later date, be dissolved by the person who originally created it. Upon dissolution, the assets, if any, that were placed into the trust revert back to the ownership status they held before they were assigned to the trust. See SettlorRevocable Trust. SETTLOR A settlor is a party who transfers property to a trust. SETTLOR-REVOCABLE TRUST A trust is a settlor-revocable trust if it is a totten trust or an express trust where the trust agreement reserves in the settlor: • The power to revoke the trust as an entirety without the declaration of new uses or the consent of any other party; and • The concurrent power to revest in himself or herself legal title to the corpus of the trust, without the consent of any other party. A revocable trust is not a taxable entity for Pennsylvania purposes. However, the settlor of the revocable trust, if a nonresident, is required to pay Pennsylvania personal income tax on the Pennsylvania-source income of the revocable trust. As a resident, the settlor of a revocable trust is required to pay Pennsylvania personal income tax on world-wide income of the revocable trust. IMPORTANT: Trusts that are classified as grantor trusts for federal tax purposes often do not constitute settlor-revocable trusts. Grantor trusts other than settlor-revocable trusts are taxable according to the same Pennsylvania personal income tax rules that apply to other trusts. See Grantor Retained Annuity Trust and Grantor Retained UniTrust. TAXABLE BANKRUPTCY ESTATE A taxable bankruptcy estate is an estate of a Chapter 7 or 11 bankruptcy debtor created under Section 1398 of the Internal Revenue Code of 1986. The PA taxable income of the bankruptcy debtor that is attributable to the bankruptcy estate must be reported by the bankruptcy estate as the estate’s income. The income of the taxable bankruptcy estate is subject to PA personal income tax. TAXABLE TRUST For Pennsylvania personal income tax purposes, a trust includes a taxable trust created by a will and any taxable express trust taking effect during the lifetime or after the death of the settlor. PA-41 5 TOTTEN TRUST A type of revocable trust formed under New York law whereby the grantor deposits his or her own funds in a bank account in his or her own name as trustee for a beneficiary. The grantor retains control over the assets until death or unequivocal action of the gifting of the property. Any income of such a trust is the income of the grantor. PENNSYLVANIA INCOME TAXATION OF ESTATES AND TRUSTS TAXABLE INCOME Estates or Trusts must report taxable income (loss) realized from the following classes: • Interest income; • Dividend income; • Net income (loss) from the operation of a business, profession or farm; • Net gain (loss) from the sale, exchange or disposition of property; • Net income (loss) from rents, royalties, patents or copyrights; • Estate or trust income; and • Gambling and lottery winnings. Compensation from a deceased individual’s final W-2 cannot be reported on a PA-41, Fiduciary Income Tax Return. This income should be reported on the individual’s final PA-40, Individual Income Tax Return. If any of the compensation is paid after an individual’s death, a letter of explanation must accompany the individual’s final return advising that the income was income in respect of a decedent and, therefore, is not subject to Pennsylvania personal income tax. However, any Pennsylvania income tax withheld should be included on the PA-41, Fiduciary Income Tax Return, Line 17. See Line 17 in these instructions. Any compensation paid after the individual’s death, plus any tax refund, must be included as assets of the decedent’s estate, and as such, are subject to inheritance tax. COSTS AND EXPENSES A fiduciary may not deduct: • Expenses and fees related to administering the estate or trust; • Costs and expenses attributable to earning or receiving interest and dividend income or managing securities holdings of the estate or trust; • Costs and expenses attributable to receiving income from other estates or trusts; • Inheritance, succession, estate, gift taxes, or taxes based on income; • Funeral expenses; 6 PA-41 • Expenses for preservation or maintenance of nonincome producing property; • Expenses related to exempt income; or • Satisfaction of personal debts of the decedent. A fiduciary may deduct only the ordinary, necessary and reasonable costs and expenses directly incurred in realizing income (loss) from: • The operation of a business or farm; • The sale, exchange, or other disposition of property; and • The receipt of rental or royalty income. GAINS OR LOSSES Estates or trusts cannot offset income in one Pennsylvania income class with a loss in any other Pennsylvania income class. Estates or trusts cannot carry income or losses back or forward to other tax years. Include the appropriate completed schedule for the income, gain (loss) reported. If the estate or trust realized a net loss in an income class, enter the amount of the loss on the appropriate line of the PA-41, Fiduciary Income Tax Return. If a negative amount, fill in the “loss” oval. TAXABLE INCOME OF BANKRUPTCY ESTATES The income of a taxable bankruptcy estate includes income (loss) realized from all the classes of income for filing a PA40 including compensation, as well as permitting the deductions for health and medical savings accounts and IRC Section 529 qualified tuition program contributions and all credits except Tax Forgiveness. All income, gain, (loss), deductions and credits allocated to a taxable bankruptcy estate will be reported on a pro-forma PA-40 Personal Income Tax Return and must be included with the PA-41 of the bankruptcy estate. TAX WITHHELD FOR NONRESIDENT BENEFICIARIES Under Act 52 of 2013, an estate or trust that receives Pennsylvania-source income and has beneficiaries who are nonresident individuals, nonresident estates or nonresident trusts must withhold and remit Pennsylvania personal income tax on each beneficiary’s share of Pennsylvaniasource taxable income that is distributed (or required to be distributed under the governing instrument) or credited to the beneficiary. The nonresident beneficiary withholding will be remitted with the estate or trust’s PA-41 return or with REV-276, Application for Extension of Time to File, by the due date of the original return without regard to extension. The estate or trust is required to withhold on all Pennsylvania-source income that is distributed (or required to be distributed under the governing instrument) or credited to a nonresident beneficiary beginning with distributions made for tax years beginning after Dec. 31, 2013. The withholding rate is 3.07 percent (0.0307). The nonresident beneficiary withholding will be due by the original due date of the PA-41 return. Nonresident beneficiary withholding will www.revenue.pa.gov not be subject to estimated underpayment penalties but will be subject to late payment and late filing penalties as well as interest on any unpaid amounts. Individuals who are nonresidents and nonresident estates and trusts are subject to the tax withholding for nonresident beneficiaries. An estate or trust does not have to withhold on the following individual and entity beneficiaries: • Pennsylvania residents; • Corporations with a permanent place of business in Pennsylvania; • Tax-exempt organizations under either Pennsylvania or federal law; • IRAs or qualified pension/profit sharing plans; • Estates where the decedent was a Pennsylvania resident at the time of death; or • Trusts that are revocable trusts. Withholding is required whether the distribution is made up of cash and/or an “in-kind” distribution of property of Pennsylvania-source income. If an in-kind distribution of property is made to a nonresident beneficiary and the fair market value of the distributed property is in excess of the beneficiary’s taxable PA-source income, the nonresident withholding tax attributable to the nonresident beneficiary must equal the amount of the taxable PA-source income for the nonresident beneficiary times 3.07 percent (0.0307) even if no cash is received by the nonresident beneficiary. If the in-kind distribution is made to a nonresident beneficiary and the fair market value of the distributed property is less than beneficiary’s taxable PAsource income, the nonresident withholding for the nonresident beneficiary must equal the amount of the taxable PA-source income for the nonresident beneficiary times 3.07 percent (0.0307). Withholding tax for a nonresident beneficiary does not exempt the nonresident beneficiary from the requirements for filing a return. A nonresident beneficiary must file a Pennsylvania tax return if they have at least $33 of income from Pennsylvania sources regardless of whether or not the tax that is due on their Pennsylvania-source income has been paid in by the estate or trust via the withholding. INCOME REQUIRED TO BE DISTRIBUTED CURRENTLY Income required to be distributed currently is income for the taxable year that the fiduciary is under a duty to distribute. The determination of whether trust income is required to be distributed currently depends upon the terms of the trust instrument and the applicable local law. Income required to be distributed currently is taxable as such even if, as a matter of practical necessity, it is not actually distributed until after the close of the trust’s taxable year. www.revenue.pa.gov It is immaterial, for purposes of determining whether income is required to be distributed currently, that the amount of income allocated to a particular beneficiary is not specified in the instrument. For example, if the fiduciary is required to distribute all the income currently, but has discretion to sprinkle or spray the income among a class of beneficiaries, or among named beneficiaries, in such amount as he/she may see fit, all the income is required to be distributed currently, even though the amount distributable to a particular beneficiary is unknown until the fiduciary has exercised his/her discretion. ESTATES, TRUSTS AND BENEFICIARIES The taxable income of an estate or taxable trust is the current income that it retains for future distribution or disbursement or currently applies to discharge, satisfy or reduce any person’s or its own obligations. Each estate or taxable trust must classify and report all income, gains and losses realized in the appropriate Pennsylvania income classes. The estate or trust must also submit PA-41 Schedules RK1 for resident individual beneficiaries and PA-41 Schedules NRK-1 for nonresident individual beneficiaries with the estate or trust’s PA-41, Fiduciary Income Tax Return. If the beneficiary is an entity such as a partnership, PA S corporation, estate or trust, the estate or trust completing the PA-41, Fiduciary Income Tax Return, must provide the entity with both a PA-41 Schedule RK-1 and NRK-1 showing the entity beneficiary’s share of taxable income. The PA-41 Schedules RK-1 and NRK-1 show all of the distributions to each of its beneficiaries. The estate or trust must provide each beneficiary with a personalized PA-41 Schedule RK-1 and/or NRK-1, showing that beneficiary’s share of its 2020 Pennsylvania-taxable income. A taxable trust (and its beneficiaries) and an estate (and its beneficiaries) are not subject to tax on income that is set aside exclusively for charitable purposes. See Charitable Trust. TAXABLE BANKRUPTCY ESTATES A taxable bankruptcy estate does not distribute estate income to a beneficiary. Consequently, a taxable bankruptcy estate cannot claim a distribution deduction. All the income of the bankruptcy estate is the taxable income of the bankruptcy estate for Pennsylvania personal income tax purposes. OWNERS OF PARTNERSHIPS AND PA S CORPORATIONS If the estate or trust is an owner of a partnership or a PA S corporation, the estate or trust must report its share of the income (loss), whether distributed or not, in the same class in which the partnership or PA S corporation reported the income. Each resident estate or trust must submit the PA-20S/PA65 Schedule RK-1 and each nonresident estate or trust PA-41 7 must submit the PA-20S/PA-65 Schedule NRK-1 received from the partnership or PA S corporation. CREDIT FOR TAXES PAID BY PENNSYLVANIA RESIDENT ESTATES OR TRUSTS TO OTHER STATES Pennsylvania taxes the income of a resident estate or trust from sources both inside and outside Pennsylvania. A resident estate or trust may claim a resident credit if it is subject to and pays income tax to another state on income that is also taxable to Pennsylvania during the same taxable year. This credit is nonrefundable, cannot exceed the amount of the total Pennsylvania tax liability of the estate or trust and may not be passed through to a beneficiary. To claim a resident credit, the estate or trust must submit a completed PA-40 Schedule G-L. See Line 15 for additional information. RESIDENT BENEFICIARY The taxable income of a resident beneficiary from a resident or nonresident estate or trust is the taxable income, regardless of source, received by the estate or trust for the taxable year that: • Is required to be distributed currently to the beneficiary, or • Is credited or distributed to the beneficiary. NONRESIDENT BENEFICIARY The taxable income of a nonresident beneficiary from a resident or nonresident estate or taxable trust is the taxable income from Pennsylvania sources received by the estate or trust for its taxable year that the estate or trust distributed, was required to distribute currently or was credited to the beneficiary. Withholding at the rate of 3.07 percent (0.0307) is required on the taxable income of a nonresident beneficiary individual or estate or trust. QSSTs For Pennsylvania personal income tax purposes, all the income reported to an irrevocable QSST is required to be distributed to the income beneficiaries. The income is reported to the trust in the various classes of income as reported on PA Schedules RK-1 or NRK-1. However, the income is distributed to the income beneficiaries as trust income. If the income beneficiary is a nonresident beneficiary, withholding at the rate of 3.07 percent (0.0307) is required on the taxable income. The trust withholding must be paid via tax withheld by the S corporation or by separate payment on behalf of the trust by the fiduciary or income beneficiary when the PA-41, Fiduciary Income Tax Return, is filed for the QSST. WHAT TO FILE See the PA-41, Fiduciary Income Tax Return, individual schedules and instructions to determine what to include with the PA-41, Fiduciary Income Tax Return. Also refer to Assembling the PA-41, Fiduciary Income Tax Return. 8 PA-41 INCOME TAX RETURNS OF ESTATES OR TRUSTS An executor or administrator must file a PA-41, Fiduciary Income Tax Return, if he or she is a fiduciary of: • A resident estate or trust that received taxable income during its taxable year; • A nonresident estate or trust that received taxable income allocable to Pennsylvania during its taxable year; or • A nonresident estate or trust that has a resident beneficiary. If the department requests, the fiduciary of an estate or trust must file a copy of the will or trust instrument (including amendments), a written declaration under the penalties of perjury that the instrument is a true and complete copy, and a statement indicating which provisions, in the fiduciary’s opinion, determine the extent of taxable income to the estate or trust or the beneficiaries. INCOME TAX RETURNS OF RESIDENT ESTATES OR TRUSTS AS OWNERS IN PARTNERSHIPS Pennsylvania taxes the income of a resident estate or trust from sources both inside and outside of Pennsylvania. If the estate or trust distributes the income to its beneficiaries, it is taxable to the beneficiaries and not the estate or trust. Any income not distributed by the estate or trust is subject to tax on the PA-41, Fiduciary Income Tax Return of the estate or trust. If the resident estate or trust is an owner in a partnership, or entity formed as a limited liability company that is classified as a partnership for federal income tax purposes, the estate or trust should receive a PA-20S/PA-65 Schedule RK-1 and a PA-20S/PA-65 Schedule NRK-1 from the partnership. Although a resident estate or trust receives both the PA20S/PA-65 Schedules RK-1 and Schedules NRK-1 from the partnership, a resident estate or trust must only submit a copy of the PA-20S/PA-65 Schedule RK-1 from each partnership and report its share of income whether distributed or not as shown on their PA-20S/PA-65 Schedules RK-1 from the partnership. A PA-20S/PA-65 Schedule NRK-1 is also required to report Pennsylvania-source income necessary to calculate the amounts for PA-41 Schedule DD for nonresident beneficiaries. See the PA-41 Schedule DD instructions on the department’s website. The copy of the PA-20S/PA-65 Schedule NRK-1 is not required to be included with a resident estate or trust tax return. However, the PA-20S/PA-65 Schedule NRK-1 is required to be included with a nonresident estate or trust tax return. See Nonresident Estates or Trusts as Owners in Partnerships. If the partnership or limited liability company does not provide PA-20S/PA-65 Schedules RK-1 or NRK-1 to the estate or trust, the estate or trust still must report and www.revenue.pa.gov classify the income (loss) from federal Form 1065 Schedule K-1 according to the instructions for each Pennsylvania income class. The estate or trust must then submit a copy of federal Form 1065 Schedule K-1 and related supporting schedules where applicable that provide information as to the classification of the income from the federal Form 1065 Schedule K-1. INCOME TAX RETURNS OF RESIDENT ESTATES OR TRUSTS AS OWNERS IN PA S CORPORATIONS Pennsylvania taxes the income of a resident estate or trust from sources both inside and outside of Pennsylvania. If the estate or trust distributes the income to its beneficiaries, it is taxable to the beneficiaries and not the estate or trust. Any income not distributed by the estate or trust is subject to tax on the PA-41, Fiduciary Income Tax Return of the estate or trust. If the resident estate or trust is an owner in a PA S corporation or entity formed as a limited liability company that is classified as a PA S corporation for federal income tax purposes, the estate or trust should receive a PA20S/PA-65 Schedule RK-1 and a PA-20S/PA-65 Schedule NRK-1 from each PA S corporation. Although a resident estate or trust receives both the PA20S/PA-65 Schedules RK-1 and Schedules NRK-1 from the PA S corporation, a resident estate or trust must only submit a copy of the PA-20S/PA-65 Schedule RK-1 from each PA S corporation and report its share of income whether distributed or not as shown on their PA-20S/PA-65 Schedules RK-1 from the PA S corporation. A PA-20S/PA-65 Schedule NRK-1 is also required to report Pennsylvania-source income necessary to calculate the amounts for PA-41 Schedule DD for nonresident beneficiaries. See the PA-41 Schedule DD instructions on the department’s website. The copy of the PA-20S/PA-65 Schedule NRK-1 is not required to be included with a resident estate or trust tax return. However, the PA-20S/PA-65 Schedule NRK-1 is required to be included with a nonresident estate or trust tax return. See Nonresident Estates or Trusts as Owners in PA S Corporations. If the estate or trust receives only a federal Form 1120S Schedule K-1, the estate or trust must obtain a PA-20S/ PA65 Schedule RK-1 from the entity. The department will only permit the estate or trust to adjust and reclassify the income from the federal Form 1120S Schedule K-1 according to Pennsylvania rules in limited circumstances. See the PA Personal Income Tax Guide – Pass Through Entities section for additional information on the adjustments required and the proper classification of income. INCOME TAX RETURNS OF NONRESIDENT ESTATES OR TRUSTS AS OWNERS IN PARTNERSHIPS Pennsylvania law imposes fiduciary income tax on the income of a nonresident estate or trust from Pennsylvania sources. A nonresident estate or trust must ignore items of www.revenue.pa.gov income (loss), cost, expense and liability that are not directly related to Pennsylvania when calculating its Pennsylvaniataxable income. If the nonresident estate or trust is an owner in a partnership, the partnership must provide the nonresident estate or trust a PA-20S/PA-65 Schedule RK-1 and a PA20S/PA-65 Schedule NRK-1 showing the nonresident estate or trust’s share of Pennsylvania-taxable income (loss) whether distributed or not. The federal Form 1065 Schedule K-1 is not an acceptable substitute. When the nonresident estate or trust, as an owner in a partnership, receives a PA-20S/PA-65 Schedule RK-1 and NRK-1 from another entity, it has the classified income (loss) amount to complete the PA-41, Fiduciary Income Tax Return. The nonresident estate or trust, as an owner in a partnership, is required to file both the PA-20S/PA-65 Schedule RK-1 and NRK-1 with their PA-41, Fiduciary Income Tax Return. Example. When a nonresident estate or trust receives income from a partnership, the nonresident estate or trust must file a copy of the PA Schedule RK-1 and NRK-1 it received from the partnership along with the PA-41, Fiduciary Income Tax Return. Each nonresident estate or trust, as an owner in a partnership, must submit with the PA-41, Fiduciary Income Tax Return: • A complete copy of its federal income tax return including all schedules, statements, federal schedules K-1; • A copy of PA-20S/PA-65 Schedules RK-1 that it provides to its resident beneficiaries; • A copy of PA-20S/PA-65 Schedules NRK-1 that it provides to its nonresident beneficiaries; • The PA-20S/PA-65 Schedules RK-1 and NRK-1 that the nonresident estate or trust received from other entities, whether the income was distributed or not. If the partnership or entity formed as a limited liability company that is classified as a partnership for federal income tax purposes has Pennsylvania-source income but does not provide to the nonresident estate or trust a PA20S/PA-65 Schedule RK-1 and NRK-1, the nonresident estate or trust still must report and classify the income (loss) from federal Form 1065 Schedule K-1 according to the instructions for each Pennsylvania income class. The nonresident estate or trust, as an owner in a partnership, must then submit a copy of its federal Form 1065 Schedule K-1 and related supporting schedules where applicable that provide information as to the classification of the income from the federal Form 1065 Schedule K-1. If the income (loss) is being reported to Pennsylvania from a federal Form 1065 Schedule K-1 and the income (loss) is not 100 percent of the amount from the federal Form 1065 Schedule K-1, a schedule or written explanation must be submitted along with the federal Form 1065 Schedule K-1 explaining how the amount reported was determined. PA-41 9 If a nonresident estate or trust does not have resident beneficiaries, the nonresident estate or trust reports Pennsylvania-source income in the appropriate classes on the PA-41, Fiduciary Income Tax Return. If a nonresident estate or trust has resident beneficiaries, the nonresident estate or trust reports worldwide income in the appropriate classes on the PA-41, Fiduciary Income Tax Return. INCOME TAX RETURNS OF NONRESIDENT ESTATES OR TRUSTS AS OWNERS IN PA S CORPORATIONS Pennsylvania law imposes fiduciary income tax on the income of a nonresident estate or trust from Pennsylvania sources. A nonresident estate or trust must ignore items of income (loss), cost, expense and liability that are not directly related to Pennsylvania when calculating its Pennsylvaniataxable income. If the nonresident estate or trust is an owner in a PA S corporation, the PA S corporation must provide the nonresident estate or trust a PA-20S/PA-65 Schedule RK-1 and NRK-1 showing the nonresident estate or trust’s share of Pennsylvania-taxable income (loss) whether distributed or not. The federal Form 1120S Schedule K-1 is not an acceptable substitute. When the nonresident estate or trust, as an owner in a PA S corporation, receives a PA-20S/PA-65 Schedule RK-1 and NRK-1 from another entity, it has the classified income (loss) amount to complete the PA-41, Fiduciary Income Tax Return. The nonresident estate or trust, as an owner in a PA S corporation, is required to file both the PA-20S/PA-65 Schedule RK-1 and NRK-1 with their PA-41, Fiduciary Income Tax Return. Example. When a nonresident estate or trust receives income from a PA S corporation, the nonresident estate or trust must file a copy of the PA Schedules RK-1 and NRK-1 it received from the PA S corporation along with the PA-41, Fiduciary Income Tax Return. Each nonresident estate or trust, as an owner in a PA S corporation, must submit with the PA-41, Fiduciary Income Tax Return: • A complete copy of its federal income tax return including all schedules, statements, federal schedules K-1; • A copy of PA-20S/PA-65 Schedules RK-1 that it provides to its resident beneficiaries; • A copy of PA-20S/PA-65 Schedules NRK-1 that it provides to its nonresident beneficiaries; and • The PA-20S/PA-65 Schedules RK-1 and NRK-1 that the nonresident estate or trust received from other entities, whether the income was distributed or not. If the PA S corporation or entity formed as a limited liability company that is classified as a PA S corporation for federal income tax purposes has Pennsylvania-source 10 PA-41 income but does not provide to the nonresident estate or trust a PA-20S/ PA-65 Schedule RK-1 and NRK-1, the nonresident estate or trust still must report and classify the income (loss) from federal Form 1120S Schedule K-1 according to the instructions for each Pennsylvania income class. If the nonresident estate or trust receives only a federal Form 1120S Schedule K-1, the nonresident estate or trust must obtain a PA-20S/PA-65 Schedule RK-1 from the entity. The department will only permit the nonresident estate or trust to adjust and reclassify the income from the federal Form 1120S Schedule K-1 according to Pennsylvania rules in limited circumstances. See the PA Personal Income Tax Guide – Pass Through Entities section, for additional information on the adjustments required and the proper classification of income. If a nonresident estate or trust does not have resident beneficiaries, the nonresident estate or trust reports Pennsylvania-source income in the appropriate classes on the PA-41, Fiduciary Income Tax Return. If a nonresident estate or trust has resident beneficiaries, the nonresident estate or trust reports worldwide income in the appropriate classes on the PA-41, Fiduciary Income Tax Return. INCOME TAX RETURNS OF NONRESIDENT ESTATES OR TRUSTS WITH RESIDENT BENEFICIARIES Pennsylvania law requires a nonresident estate or trust with resident beneficiaries to file a PA-41, Fiduciary Income Tax Return, regardless of whether there is Pennsylvania-source income or not. The nonresident estate or trust must report the worldwide income in the appropriate classes on the PA-41, Fiduciary Income Tax Return. The nonresident estate or trust must also report its worldwide income and calculate the amounts for PA41 Schedule DD. See the PA-41 Schedule DD instructions on the department’s website. A nonresident estate or trust must provide each resident beneficiary with a PA-41 Schedule RK-1 showing the resident beneficiary’s share of the distributed/distributable income. A nonresident estate or trust with a Pennsylvania resident beneficiary must include a copy of the resident state’s fiduciary income tax return or a copy of an affidavit certifying the state of residency of the estate or trust if the estate or trust’s state of residency does not have an income tax. In addition, the nonresident estate or trust must include a copy of federal Form 1041 with the PA-41, Fiduciary Income Tax Return. Further, when a nonresident estate or trust with resident beneficiaries is an owner in a PA S corporation, partnership or entity formed as a limited liability company that is classified as a partnership or PA S corporation for federal income tax purposes, the estate or trust must submit a copy of each of the PA-20S/PA65 Schedules RK-1 and PA20S/PA-65 Schedules NRK-1 that it receives from each entity. The nonresident estate or trust must also report its www.revenue.pa.gov worldwide income and calculate the amounts for PA-41 Schedule DD. See the PA-41 Schedule DD instructions on the department’s website. INCOME TAX RETURNS OF NONRESIDENT ESTATES OR TRUSTS WITH NONRESIDENT BENEFICIARIES A nonresident estate or trust with no resident beneficiaries that is an owner in a PA S corporation, partnership or entity formed as a limited liability company that is classified as a partnership or PA S corporation for federal income tax purposes must only submit a copy of the PA-20S/PA-65 Schedules NRK-1 that it receives from each entity with its PA-41, Fiduciary Income Tax Return. If a nonresident estate or trust does not have resident beneficiaries, the nonresident estate or trust must only report Pennsylvaniasource income in the appropriate classes on the PA-41, Fiduciary Income Tax Return. The nonresident estate or trust must report its Pennsylvania-source income and calculate the amounts for PA-41 Schedule DD, Column B. The nonresident estate or trust must calculate and include its worldwide income and calculate the amounts for PA-41 Schedule DD, Column A. See the PA-41 Schedule DD instructions on the department’s website. INCOME TAX RETURNS OF PENNSYLVANIA RESIDENT ESTATES OR TRUSTS AS BENEFICIARIES OF PENNSYLVANIA ESTATES OR TRUSTS If the estate or trust is a beneficiary of a Pennsylvania estate or trust, the estate or trust beneficiary should receive a PA41 Schedule RK-1 and PA-41 Schedule NRK-1 from the Pennsylvania estate or trust entity. A PA-41 Schedule RK-1 reports worldwide income necessary to calculate the amounts for PA-41 Schedule DD. See the PA-41 Schedule DD instructions on the department’s website. As a resident beneficiary of a resident estate or trust, the resident estate or trust reports the income from the Pennsylvania estate or trust reports the income from the PA41 Schedule RK-1, Line 6 on PA-41 Schedule J and on the PA-41, Fiduciary Income Tax Return, Line 6. A PA-41 Schedule NRK-1 reports the Pennsylvania-source income to calculate amounts for Column b on PA-41 Schedule DD when there are nonresident beneficiaries. See the PA-41 Schedule DD instructions on the department’s website. If there are no nonresident beneficiaries, the PA41 Schedule NRK-1 is not used by estates or trusts. IMPORTANT: An estate or trust as a beneficiary should receive PA-41 Schedules RK-1 and NRK-1, if it has income from a resident estate or trust. It is important to remember that the PA-41 Schedules RK-1 and NRK-1 submitted to the resident beneficiary should reflect the taxable income to Pennsylvania residents even if the estate or trust is a nonresident. If the nonresident estate or trust does not provide to the Pennsylvania estate or trust a PA-41 Schedule RK-1 and NRK-1, the Pennsylvania estate or trust still must include www.revenue.pa.gov and report the income from federal Form 1041 Schedule K1 as a single class of income; estate or trust income. The income from the federal Form 1041 Schedule K-1 should be added together to arrive at the estate or trust income to be reported for PA purposes. However, if any losses are reported on the federal Form 1041 Schedule K-1, only losses within the same PA class of income (usually gain or loss on the sale, exchange or disposition of property) may be netted with other gains in the same PA class of income. Losses from different PA classes of income may not be netted against income from another PA class of income when calculating the income from a federal Form 1041 Schedule K-1. A copy of the federal Form 1041 Schedule K1 is required to be included with the PA-41, Fiduciary Income Tax Return. If the estate or trust beneficiary receives a PA-41 Schedule RK-1 or NRK-1, a copy of that document is not required to be submitted with the PA-41, Fiduciary Income Tax Return. A PA-41 Schedule RK-1 reports worldwide income necessary to calculate the amounts for PA-41 Schedule DD. See the PA-41 Schedule DD instructions on the department’s website. As a resident beneficiary of a resident estate or trust, the resident estate or trust reports the income from the PA-41 Schedule RK-1, Line 6 on PA-41 Schedule J and on the PA41, Fiduciary Income Tax Return, Line 6. A PA-41 Schedule NRK-1 reports the Pennsylvania-source income to calculate amounts for Column b on PA-41 Schedule DD when there are nonresident beneficiaries. See the PA-41 Schedule DD instructions on the department’s website. If there are no nonresident beneficiaries, the PA41 Schedule NRK-1 is not used by estates or trusts. INCOME TAX RETURNS OF PENNSYLVANIA RESIDENT ESTATES OR TRUSTS AS BENEFICIARIES OF NONRESIDENT ESTATES OR TRUSTS If the Pennsylvania estate or trust is a beneficiary of a nonresident estate or trust, the nonresident estate or trust may provide the Pennsylvania estate or trust beneficiary with a PA-41 Schedule RK-1 and NRK-1 showing the estate or trust’s share of Pennsylvania-taxable income (loss) whether distributed or not if the estate or trust is required to file the PA-41, Fiduciary Income Tax Return. See Who Must File and Who Does Not File. If the nonresident estate or trust does not provide to the Pennsylvania estate or trust a PA-41 Schedule RK-1 and NRK-1, the Pennsylvania estate or trust still must include and report the income from federal Form 1041 Schedule K-1 as a single class of income; estate or trust income. The income from the federal Form 1041 Schedule K-1 should be added together to arrive at the estate or trust income to be reported for PA purposes. However, if any losses are reported on the federal Form 1041 Schedule K-1, only losses within the same PA class of income (usually gain or loss on the sale, exchange or disposition of property) may be netted with other gains in the same PA class of income. Losses from different PA-41 11 PA classes of income may not be netted against income from another PA class of income when calculating the income from a federal Form 1041 Schedule K-1. A copy of the federal Form 1041 Schedule K-1 is required to be included with the PA-41, Fiduciary Income Tax Return. If the estate or trust beneficiary receives a PA-41 Schedule RK-1 or NRK-1, a copy of that document is not required to be submitted with the PA-41, Fiduciary Income Tax Return. A PA-41 Schedule RK-1 reports worldwide income necessary to calculate the amounts for PA-41 Schedule DD. See the PA-41 Schedule DD instructions on the department’s website. As a resident beneficiary of a nonresident estate or trust, the resident estate or trust reports the income from the PA41 Schedule RK-1, Line 6 on PA-41 Schedule J and on the PA-41, Fiduciary Income Tax Return, Line 6. A PA-41 Schedule NRK-1 reports the Pennsylvania-source income to calculate amounts for Column b on PA-41 Schedule DD when there are nonresident beneficiaries. See the PA-41 Schedule DD instructions on the department’s website. If there are no nonresident beneficiaries, the PA41 Schedule NRK-1 is not used by estates or trusts. INCOME TAX RETURNS OF RESIDENT TAXABLE BANKRUPTCY ESTATES If the bankruptcy debtor is a resident of Pennsylvania, the bankruptcy estate must file a PA-41 including only the portion of the bankruptcy debtor’s income allocated to the bankruptcy estate. The income to be reported is included on a pro-forma PA-40 prepared as if it were the income of the resident bankruptcy debtor. The Adjusted PA Taxable Income from Line 11 of the pro-forma PA-40 will be reported on PA-41 Schedule J and on Line 6 of the PA-41. Taxes withheld, estimated tax payment and credits (except the Tax Forgiveness Credit) from Lines 13, 14, 15, 17, 22 and 23 of the pro-forma PA-40 will also be reported as payments and credits for the bankruptcy estate. The pro-forma return is prepared including only the bankruptcy estate’s allocated world-wide income using the requirements and attachment of schedules for a PA-40. The pro-forma PA-40 must be included with the PA-41 of the bankruptcy estate as supporting documentation for the PA41 Schedule J. To clearly distinguish the pro-forma PA-40 of the bankr
Extracted from PDF file 2020-pennsylvania-form-pa-41.pdf, last modified November 2018

More about the Pennsylvania Form PA-41 Corporate Income Tax Tax Return TY 2020

We last updated the PA Fiduciary Income Tax Return in January 2021, so this is the latest version of Form PA-41, fully updated for tax year 2020. You can download or print current or past-year PDFs of Form PA-41 directly from TaxFormFinder. You can print other Pennsylvania tax forms here.

Related Pennsylvania Corporate Income Tax Forms:

TaxFormFinder has an additional 174 Pennsylvania income tax forms that you may need, plus all federal income tax forms. These related forms may also be needed with the Pennsylvania Form PA-41.

Form Code Form Name
Form PA-41 PA-V PA-41 Payment Voucher
Form PA-41 RK-1 PA-41 Schedule RK-1 - Resident Schedule of Shareholder/Partner/Beneficiary Pass Through Income, Loss and Credits
Form PA-41DD PA-41 Schedule DD - Distribution Deductions
Form PA-41 NRK-1 PA-41 Schedule NRK-1 - Nonresident Schedule of Shareholder/Partner/Beneficiary Pass Through Income, Loss, and Credits
Form PA-41D PA-41 Schedule D - Sale, Exchange or Dispostion of Property
Form PA-41N PA-41 Schedule N - PA-Source Income and Nonresident Tax Withheld
Form PA-41B PA-41 Schedule B - Dividend and Capital Gains Distributions Income
Form PA-41X Schedule PA-41X - Amended PA Fiduciary Income Tax Schedule
Form PA-41A PA-41 Schedule A - Interest Income and Gambling and Lottery Winnings
Form PA-41J PA-41 Schedule J - Income from Estates or Trusts

Download all PA tax forms View all 175 Pennsylvania Income Tax Forms


Form Sources:

Pennsylvania usually releases forms for the current tax year between January and April. We last updated Pennsylvania Form PA-41 from the Department of Revenue in January 2021.

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Form PA-41 is a Pennsylvania Corporate Income Tax form. Like the Federal Form 1040, states each provide a core tax return form on which most high-level income and tax calculations are performed. While some taxpayers with simple returns can complete their entire tax return on this single form, in most cases various other additional schedules and forms must be completed, depending on the taxpayer's individual situation, to create a complete income tax return package.

About the Corporate Income Tax

The IRS and most states require corporations to file an income tax return, with the exact filing requirements depending on the type of company.

Sole proprietorships or disregarded entities like LLCs are filed on Schedule C (or the state equivalent) of the owner's personal income tax return, flow-through entities like S Corporations or Partnerships are generally required to file an informational return equivilent to the IRS Form 1120S or Form 1065, and full corporations must file the equivalent of federal Form 1120 (and, unlike flow-through corporations, are often subject to a corporate tax liability).

Additional forms are available for a wide variety of specific entities and transactions including fiduciaries, nonprofits, and companies involved in other specific types of business.

Historical Past-Year Versions of Pennsylvania Form PA-41

We have a total of ten past-year versions of Form PA-41 in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:


2020 Form PA-41

2020 PA Fiduciary Income Tax Return/PA Schedule OI - Other Information (PA-41/PA-41 OI)

2019 Form PA-41

2019 PA Fiduciary Income Tax Return (PA-41)

2018 Form PA-41

2018 PA Fiduciary Income Tax Return (PA-41)

2017 Form PA-41

2017 PA Fiduciary Income Tax Return (PA-41)

2016 Form PA-41

2016 PA Fiduciary Income Tax Return (PA-41)

Forms/Publications 2015 Form PA-41

2015 PA Fiduciary Income Tax Return

Forms/Publications 2014 Form PA-41

2014 PA Fiduciary Income Tax Return (PA-41)

2013 PA Fiduciary Income Tax Return (PA-41) 2013 Form PA-41

2013 PA Fiduciary Income Tax Return (PA-41)

2012 PA Fiduciary Income Tax Return (PA-41) 2012 Form PA-41

2012 PA Fiduciary Income Tax Return (PA-41)

2011 PA Fiduciary Income Tax Return (PA-41) 2011 Form PA-41

2011 PA Fiduciary Income Tax Return (PA-41)


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