Pennsylvania Fiduciary Income Tax Return · nia-source income. • Several new or revised filing...

With the passage of Act 52 of 2013,several revisions have been made tothe 2014 PA-41, Fiduciary Income TaxReturn, forms and instructions. Thechanges are effective for tax yearsbeginning after Dec. 31, 2013.

• PA withholding is now required onPA-source income distributed/distrib-utable to nonresident beneficiaries.

• A new line has been added to thePA-41, Fiduciary Income Tax Return,to permit payment of the tax withheldfor nonresident beneficiaries by anestate or trust.

• Additional instructions have beenincluded for new Line 11, Tax With-held for Nonresident Beneficiaries,on Pennsylvania-source income.

• New definitions were added fornonresident beneficiary, residentbeneficiary, person and Pennsylva-nia-source income.

• Several new or revised filing require-ments were also added as follows:

◦ A nonresident estate or trust witha resident beneficiary is requiredto file a PA-41, Fiduciary IncomeTax Return.

◦ A copy of federal Form 1041including all schedules and attach-ments must now be included withthe PA-41, Fiduciary Income TaxReturn.

◦ The estate or trust’s fiduciary ortrustee is required to keep anaccurate list of beneficiaries.

◦ If an estate or trust is required tofile a PA-41, Fiduciary Income TaxReturn, as outlined in Who MustFile, and the estate or trust fails tofile the return, the estate or trust issubject to a $250 penalty for failingto file the return, plus a $250penalty for each of the PA-41Schedules RK-1 or NRK-1 for thebeneficiaries of the estate or trust.

• The Estate or Trust IdentificationChange oval on of the PA-41form as well as the instructions forthe oval were removed.

• A new schedule, PA-41 Schedule N,and corresponding instructions havebeen created. Changes to theinstructions were made for PA-41Schedules DD, NRK-1 and RK-1to reflect the addition of PA-41Schedule N.

• Schedules A and B have beenrevised. The schedules now requireestates or trusts to begin with federalinterest and dividend income report-ing amounts and make adjustmentsto that income based upon the differ-ences in Pennsylvania and federaltax laws. The schedules are nowonly required if there are amountson any line other than Line 1 of theschedules.

• Additional instructions were addedfor amended returns with respect tochanging residency status of anexisting trust.

• The resident credit for taxes paid toother states or countries is now onlyavailable as a credit for taxes paid toother states where state is definedas a state of the United States,the District of Columbia, the Com-monwealth of Puerto Rico and anyterritory or possession of the UnitedStates. The credit for taxes paidto foreign countries is no longerpermitted as a credit against apersonal income tax liability.

PURPOSE OF FORMThe fiduciary of a resident estate or trustuses the PA-41, Fiduciary Income TaxReturn, to report:

• The income, deductions, gains,losses, etc. of the estate or trust;

• The income that is either accumu-lated or held for future distribution ordistributed currently to the benefici-aries; and

• Any income tax liability of the estateor trust

The fiduciary of a nonresident estate ortrust uses the PA-41 Fiduciary IncomeTax Return to report:

• Pennsylvania-source income whenthere are no resident beneficiaries;

• Worldwide income when the estateor trust has Pennsylvania-sourceincome and resident beneficiaries; or

• Any income tax liability of the estateor trust.

TAX CREDITSEstates and trusts cannot pass throughany tax credits to its beneficiaries.

By law (42 U.S.C. §405(c)(2)(C)(i); 61Pa. Code §117.16), the department hasthe authority to use the Social Securitynumber (SSN) to administer the Penn-sylvania personal income tax and otherCommonwealth of Pennsylvania tax laws.

The department uses the SSN to identifyindividual taxpayers and verify theirincomes. The department also uses theSSN to administer a number of tax-offsetand child-support programs that federaland Pennsylvania laws require.

The commonwealth may also use theSSN in exchange-of-tax informationagreements with governmental authori-ties. Except for official purposes, Penn-sylvania law prohibits the commonwealthfrom disclosing information that individualsprovide on income tax returns, includingthe SSN(s).

An estate or trust must file the PA-41,Fiduciary Income Tax Return, if any ofthe following apply:

• The fiduciary is for a trust of an irrev-ocable electing small business trust;

• An estate or trust earned, receivedor realized more than $33 of Penn-sylvania-taxable income; or recordsa loss in any class of income.

• The fiduciary of a resident estateor taxable trust received taxableincome/loss during its taxable year;

• The fiduciary of a nonresident estateor trust received taxable income andthe estate or trust has a Pennsylvaniaresident beneficiary;

WHAT’S NEW

GENERAL INFORMATION

PRIVACY NOTIFICATION

WHO MUST FILE

PA-41 1www.revenue.state.pa.us

Pennsylvania Department of Revenue 2014Instructions for Form PA-41

Pennsylvania Fiduciary Income Tax Return

2 PA-41 www.revenue.state.pa.us

• The fiduciary of a grantor trustincluding a Grantor Retained AnnuityTrust (GRAT) or Grantor RetainedUnitrust (GRUT) received taxableincome during its taxable yearregardless of whether it is requiredto file a federal income tax return ornot, unless the grantor trust is asettlor-revocable trust;

• The fiduciary of a charitable trustincluding a Charitable RemainderAnnuity Trust (CRAT) and CharitableRemainder Unitrust (CRUT) receivedtaxable income during its taxableyear, regardless of whether it isrequired to file a federal incometax return or not, when any privateindividual benefits from the earningsof the trust;

• The fiduciary of a nonresident estateor taxable trust received Pennsylva-nia-source income/loss during itstaxable year;

• The fiduciary of a nonresidenttaxable trust including grantor trusts,GRATS, GRUTS, CRATS andCRUTS received Pennsylvania-source income/loss; or

• The fiduciary of a revocable trustthat becomes an irrevocable trust(settlor of a revocable trust dies orthe terms of trust are altered tomake the trust irrevocable) receivedtaxable income.

An estate or trust does not file the PA-41,Fiduciary Income Tax Return, if it is oneof the following:

• A charitable trust exclusively forreligious, charitable, scientific, literaryor educational purposes;

• A revocable trust-any revocabletrust (grantor or settlor-revocable);

• A nonresident estate or trust withno Pennsylvania-source income/loss AND no Pennsylvania residentbeneficiaries;

• A funeral trust;

• A resulting or constructive trustcreated by operation of law;

• A trust created exclusively for thebenefit of creditors;

• A principal and agent relationship;

• A business trust or real estateinvestment trust;

• A trust created exclusively for thebenefit 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 fundfor federal income tax purposes; or

• A trust created by an entity or en-terprise other than a Pennsylvaniapersonal income tax taxpayer:

◦ For which no part of the income orcorpus may possibly benefit anybeneficiary who is a Pennsylvaniapersonal income tax taxpayer; and

◦ For which no part of the propertyconsists of property transferred toit (or another trust) by any Penn-sylvania personal income taxtaxpayer; and

◦ Created by an entity or enterpriseother than a Pennsylvania personalincome tax taxpayer.

NOTE: For purposes of the lastthree bullets above, a Pennsylva-

nia personal income tax taxpayermeans any individual, estate, trust,partnership, PA S corporation or en-tity formed as a limited liability com-pany that is classified as apartnership or PA S corporation forfederal income tax purposes.

Before preparation of the PA-41, Fiduci-ary Income Tax Return, determine allof the following under the terms of thegoverning instrument and the lawsapplicable to the administration of estatesor trusts:

• Whether an item of receipt orexpense is allocable to corpus orincome;

• What part, if any, of the undistributednet income of a trust (for administra-tive purposes) is required to beadded to corpus;

• Whether property distributed in kindis distributed as a gift or bequest ofspecific property;

• Whether an amount is properly paidout of corpus as a gift or bequest ofa specific amount of money;

• Whether payment of a distributionis directed without reference to theexistence or absence of income; and

• Whether the estate or trust mustdistribute an amount, and whether itpays such amount out of income orcorpus, or it may pay such amountout of either income or corpus.

When the governing instrument specifi-cally provides the source from which

amounts are to be permanently set asideor used, the provisions of the governinginstrument control the distribution andcalculation of income.

The governing instrument determineswhen amounts, including particularitems of income received by the estateor trust, are set aside or when thoseamounts are used for specific purposes.In the absence of specific provisions inthe governing instrument, the amountshall be deemed to consist of the sameproportion of each class of the items ofincome of the estate or trust as the totalof each class bears to the total of allclasses.

In determining whether income derivedfrom a partnership, PA S corporation,estate or trust is required to be distrib-uted currently, or is distributed or cred-ited to a beneficiary, the excess of thePennsylvania-taxable income derivedthrough such partnership, PA S corpora-tion, estate or trust over the amount ofdistributions or withdrawals therefromshall be considered to be income that isrequired to be retained, accumulated orset aside.

Amounts disbursed to pay taxes meas-ured by the income for another taxableperiod may not be treated as set asidefrom current income.

Generally, amounts disbursed to paynondeductible trustee commissions, legaland accounting expenses and othercurrent expenses that do not reduce theamount of taxable or nontaxable incomeor gain of the trust for the taxable yearshall be treated as nontaxable income orgain which is required to be accumulated,retained or set aside.

This is true as long as total distributionsfor the year do not equal or exceed theexcess of total taxable and nontaxableincome received by the estate or trustfor the taxable year over total taxableand nontaxable income received by theestate or trust for the taxable year, whichis required to be accumulated, retainedor set aside for future distribution.

However, if total distributions for the yeardo equal or exceed the excess of totaltaxable and nontaxable income receivedby the estate or trust for the taxable yearover total taxable and nontaxableincome received by the estate or trustfor the taxable year, which is required tobe accumulated, retained or set asidefor future distribution, the amounts shallbe treated as distributions by the estateor trust and beneficiaries.

SPECIAL RULES

WHO DOES NOT FILE A PA-41 FIDUCIARY INCOME

TAX RETURN


If a trust consists in part of intangibleinvestment property, such as stock orsecurities, or tangible investment prop-erty, such as real estate located outsidePennsylvania transferred to it by a personwho at the time of the transfer was anonresident, the income or gains realizedfrom such property shall be excludablefrom tax by the trust.

Charitable TrustA charitable trust is one operated exclu-sively for religious, charitable, scientific,literary or educational purposes. A trustis a charitable trust only if all of the netearnings for the taxable year andremaining life of the trust are for distribu-tion for such purposes. No part of theearnings of a charitable trust may benefitany private individual.

Trusts for the general care, maintenanceor improvement of public or churchcemeteries are charitable trusts. How-ever, trusts for the care, maintenance, orimprovement of the burial lots of thesettlor, testator or his/her family are notcharitable trusts.

Charitable Remainder AnnuityTrusts (CRAT) and Charitable Remainder Unitrusts (CRUT)Charitable Remainder Annuity Trusts(CRATS) and Charitable RemainderUnitrusts (CRUT) are trusts consisting ofassets that are designated for a charita-ble purpose and are paid over to thetrusts after the expiration of a life estateor intermediate estate.

Federally qualified CRATs and CRUTsare not charitable trusts if during thecurrent taxable year:

• Any part of the trust’s retained earn-ings may benefit any private individ-ual in subsequent years; or

• Any part of the trust's current incomeis required under the governinginstrument or any applicable statelaw to be distributed currently or isactually distributed or credited to abeneficiary that is not a charitableorganization for which a donor mayreceive a charitable contributiondeduction for federal income taxpurposes.

IMPORTANT: CRATs, charitableremainder trusts, CRUTs and

pooled income fund trusts of publiccharities are ordinary trusts that are notexempt from PA-41, Fiduciary IncomeTax Return, filing requirements or taxation.

These types of charitable trusts must filea Pennsylvania trust tax return, pay taxon any retained earnings, and report theincome to the beneficiary on the samebasis as any other ordinary trust.

CorpusThe corpus is principal or property of anestate or trust as opposed to the income itearns, receives or realizes from its corpus.

EstateFor Pennsylvania personal income taxpurposes, an estate is the estate of adeceased individual.

An estate for Pennsylvania personal income tax purposes does not includethe estates of incompetents, bankrupts or insolvents.

FiduciaryA fiduciary is an individual, corporationor association holding assets in trust foranother party, often with the legalauthority and duty to make decisionsregarding financial matters on behalf ofthe other party.

Funeral TrustA funeral trust is a trust that arises froma contract with a person engaged in thebusiness of providing funeral or burialservices or property for these services,with the trust assets designated to paythe funeral expenses of the individual forwhom the trust is established. The trustassets cannot be distributed until thedeath of that individual. Funeral trustsare revocable trusts and are not requiredReturn. However, income on the trustassets is taxed to the taxpayer who con-tributed the assets to the trust. See PAPersonal Income Tax Guide, Chapter 14.

Governing InstrumentThe governing or trust instrument isa written document that defines anddescribes the nature of and providesinstructions for the administration andsettlement of an estate or trust.

The document can be a deed of trust,will, written trust agreement, an instru-ment creating or exercising a power ofappointment or a dispositive, appointiveor nominative instrument of a similar type.

The department does not require a copyof the governing instrument with thePA-41, Fiduciary Income Tax Return, butthe estate or trust must submit it uponrequest.

Grantor Retained Annuity Trust(GRAT) and Grantor RetainedUnitrust (GRUT)GRATs and GRUTs are types of grantortrusts where the grantor retains an interestin receiving income assets of the trust.

IMPORTANT: GRATs and GRUTsare ordinary trusts that are not

exempt from PA-41, Fiduciary Income TaxReturn, filing requirements or taxation.These types of trusts must file a Penn-sylvania trust tax return, pay tax on anyretained earnings, and report the incometo the beneficiary on the same basis asany other ordinary trust.

Electing Small Business TrustAn electing small business trust is anytrust that can hold stock of an S corpo-ration. The term means any trust if:

• It does not have as a beneficiaryany person other than an individual,estate or an organization describedin IRC §170(c)(2) and 170(c)(5);

• No interest in such trust wasacquired by purchase; and

• An election is made by the trusteeapplicable to the trust.

Grantor TrustA grantor trust is a trust in which someor all of the assets are considered to beowned by the grantor for federal incometax purposes.

However, Pennsylvania law varies fromfederal law regarding grantor trusts andfederal rules do not apply for Pennsyl-vania fiduciary income tax purposes.Pennsylvania law imposes the fiduciaryincome tax on grantor trusts accordingto the same Pennsylvania personalincome tax rules that apply to irrevocabletrusts, unless the grantor trust is a revo-cable trust. See Revocable Trust.

The beneficiaries of the trust are taxedon income required to be distributed cur-rently or actually distributed or creditedto them. The grantor trust is taxable onthe remainder.

Irrevocable TrustAn irrevocable trust is a trust that cannotbe modified, amended, changed orterminated by the grantor.

Nonresident BeneficiaryA nonresident beneficiary is a personwho is not a resident beneficiary. SeeResident Beneficiary.

Nonresident EstateA nonresident estate is any estate thatis not a Pennsylvania resident estate.

Nonresident TrustA nonresident trust is any irrevocabletrust that is not a Pennsylvania residenttrust. An inter vivos trust or a testamen-tary trust created by a resident can

DEFINITIONS


become a nonresident trust if the settloris no longer a resident or is deceased,and the trust lacks sufficient contact withPennsylvania to establish nexus. Anyone of the following conditions providessufficient contact for a resident trust toremain a resident trust or to requalify asa resident trust:

• The trust has a resident trustee;

• Any trust administration occurs inPennsylvania;

• Trust assets include:

◦ Real or tangible personal propertylocated within Pennsylvania, or

◦ Stock, securities or intangiblepersonal property, evidenced bythe documents, certificates or otherinstruments that are physicallylocated, or have a business situswithin Pennsylvania; or

• The situs of the trust is Pennsylvaniaas provided in 20 PA. C.S. §7708.

Pennsylvania-Source IncomePennsylvania-source income is incomederived by the estate or trust fromsources within Pennsylvania. For estatesand trusts, that income is generallyderived from:

• Operation of a business or owner-ship in a partnership, S corporationor limited liability company that hasoperations wholly or partially withinPennsylvania;

• Ownership of rental property or apartnership, S corporation or limitedliability company that owns rentalproperty located in Pennsylvania;

• Sales of tangible property located inPennsylvania;

• Gambling and lottery winnings froma wager placed in Pennsylvania;and/or

• Estate or trust income from anotherestate or trust that has income fromany of the above sources.

For additional information on Pennsyl-vania-source income and what types ofincome nonresidents should report, seePersonal Income Tax Guide – Chapter 4.

PersonA person is an individual, estate, trust,association, partnership or corporation,resident or nonresident, and the pluralas well as the singular number.

Resident BeneficiaryA resident beneficiary is a person who isdomiciled in Pennsylvania unless theperson maintains no permanent place of

abode in Pennsylvania and does maintaina permanent place of abode elsewhereand spends no more than 30 days of thetaxable year in Pennsylvania; or is aperson who is not domiciled in Pennsyl-vania but maintains a permanent placeof abode in Pennsylvania and spendsmore than 183 aggregate days of thetaxable year in Pennsylvania. The Fidu-ciary of an estate or trust must maintainan accurate list of beneficiaries.

Resident Estate or TrustA resident estate is the estate created byan individual who at the time of his orher death was a Pennsylvania resident.

A resident trust is any of the following:

• A trust created by the will of a dece-dent who, at the time of death, wasa Pennsylvania resident individual;

• A trust consisting of property trans-ferred to it or another trust by a set-tlor or other individual, estate ortrust that at the time of such transfer,was a Pennsylvania resident; or

• A trust of a person who, at the timeof such creation, was a Pennsylvaniaresident.

Revocable TrustA revocable trust is one that can becreated by anyone, and at a later date,be dissolved by the person who origi-nally created it. Upon dissolution, theassets, if any, that were placed into thetrust revert back to the ownership statusthey held before they were assigned tothe trust. See Settlor-Revocable Trust.

SettlorA settlor is a party who transfers propertyto a trust.

Settlor-Revocable TrustA trust is a settlor-revocable trust if it isa totten trust or an express trust where thetrust agreement reserves in the settlor:

• The power to revoke the trust as anentirety without the declaration ofnew uses or the consent of anyother party; and

• The concurrent power to revest inhimself or herself legal title to thecorpus of the trust, without theconsent of any other party.

A revocable trust is not a taxable entityfor Pennsylvania purposes. However, thesettlor of the revocable trust, if a nonres-ident, is required to pay Pennsylvaniapersonal income tax on the Pennsylva-nia-source income of the revocable trust.

As a resident, the settlor of a revocabletrust is required to pay Pennsylvaniapersonal income tax on world-wideincome of the revocable trust.

IMPORTANT: Trusts that areclassified as grantor trusts for fed-

eral tax purposes often do not constitutesettlor-revocable trusts.

Grantor trusts other than settlor-revocabletrusts are taxable according to the samePennsylvania personal income tax rulesthat apply to other trusts. See GrantorRetained Annuity Trust and GrantorRetained UniTrust.

Taxable Trust For Pennsylvania personal income taxpurposes, a trust includes a taxable trustcreated by a will and any taxable expresstrust taking effect during the lifetime orafter the death of the settlor.

Totten Trust A type of revocable trust formed underNew York law whereby the grantordeposits his or her own funds in a bankaccount in his or her own name as trusteefor a beneficiary. The grantor retainscontrol over the assets until death orunequivocal action of the gifting of theproperty. Any income of such a trust isthe income of the grantor.

Taxable IncomeEstates or Trusts must report taxableincome (loss) realized from the followingclasses:

• Interest income;

• Dividend income;

• Net income (loss) from the operationof a business, profession or farm;

• Net gain (loss) from the sale,exchange or disposition of property;

• Net income (loss) from rents, royal-ties, patents or copyrights;

• Estate or trust income; and

• Gambling and lottery winnings.

TIP: Compensation from adeceased individual’s final W-2

cannot be reported on a PA-41, FiduciaryIncome Tax Return. This income shouldbe reported on the individual’s final PA-40,Individual Income Tax Return.

If any of the compensation is paid after anindividual’s death, a letter of explanationmust accompany the individual’s final

PENNSYLVANIA INCOMETAXATION OF ESTATES

AND TRUSTS


return advising that the income wasincome in respect of a decedent and,therefore, is not subject to Pennsylvaniapersonal income tax. However, anyPennsylvania income tax withheld shouldbe included on the PA-41, FiduciaryIncome Tax Return, Line 17. See Line 17in these instructions.

Any compensation paid after the individ-ual’s death, plus any tax refund, must beincluded as assets of the decedent’sestate, and as such, are subject toinheritance tax.

Costs and ExpensesA fiduciary may not deduct:

• Expenses and fees related to admin-istering the estate or trust;

• Costs and expenses attributable toearning or receiving interest anddividend income or managing secu-rities holdings of the estate or trust;

• Costs and expenses attributable toreceiving income from other estatesor trusts;

• Inheritance, succession, estate, gifttaxes, or taxes based on income;

• Funeral expenses;

• Expenses for preservation or main-tenance of non-income producingproperty;

• Expenses related to exempt income;or

• Satisfaction of personal debts of thedecedent.

A fiduciary may deduct only the ordinary,necessary and reasonable costs andexpenses directly incurred in realizingincome (loss) from:

• The operation of a business or farm;

• The sale, exchange, or other dispo-sition of property; and

• The receipt of rental or royaltyincome.

Gains or LossesEstates or trusts cannot offset income inone Pennsylvania income class with aloss in any other Pennsylvania incomeclass.

Estates or trusts cannot carry income orlosses back or forward to other taxyears. Include the appropriate completedschedule for the income, gain (loss)reported.

TIP: If the estate or trust realizeda net loss in an income class,

enter the amount of the loss on theappropriate line of the PA-41, FiduciaryIncome Tax Return. If a negative amount,fill in the “loss” oval.

Tax Withheld for NonresidentBeneficiariesUnder Act 52 of 2013, an estate or trustthat receives Pennsylvania-sourceincome and that has beneficiaries whoare nonresident individuals, nonresidentestates or nonresident trusts must with-hold and remit Pennsylvania personalincome tax on each beneficiary’s shareof Pennsylvania-source taxable incomethat is distributed (or required to be dis-tributed under the governing instrument)or credited to the beneficiary. The non-resident beneficiary withholding will beremitted with the estate or trust’s PA-41return or with REV-276, Application forExtension of Time to File, by the duedate of the original return without regardto extension.

The estate or trust is required to withholdon all Pennsylvania-source income thatis distributed (or required to be distrib-uted under the governing instrument) orcredited to a nonresident beneficiarybeginning with distributions made for taxyears beginning after Dec. 31, 2013.The withholding rate is 3.07 percent(0.0307). The nonresident beneficiarywithholding will be due by the original duedate of the PA-41 return. Nonresidentbeneficiary withholding will not be subjectto estimated underpayment penaltiesbut will be subject to late payment andlate filing penalties as well as interest onany unpaid amounts.

Individuals who are nonresidents andnonresident estates and trusts are sub-ject to the tax withholding for nonresidentbeneficiaries. An estate or trust does nothave to withhold on the following individ-ual and entity beneficiaries:

• Pennsylvania residents;

• Corporations with a permanentplace of business in Pennsylvania;

• Tax-exempt organizations undereither Pennsylvania or federal law;

• IRAs or qualified pension/profitsharing plans;

• Estates where the decedent was aPennsylvania resident at the time ofdeath; or

• Trusts that are revocable trusts.

Withholding is required whether thedistribution is made up of cash and/oran “in-kind” distribution of property ofPennsylvania-source income.

If an in-kind distribution of property ismade to a nonresident beneficiary andthe fair market value of the distributedproperty is in excess of the beneficiary’staxable PA-source income, the nonresi-

dent withholding tax attributable to thenonresident beneficiary must equal theamount of the taxable PA-source incomefor the nonresident beneficiary times3.07 percent (0.0307) even if no cash isreceived by the nonresident beneficiary.If the in-kind distribution is made to anonresident beneficiary and the fairmarket value of the distributed propertyis less than beneficiary’s taxable PA-source income, the nonresident with-holding for the nonresident beneficiarymust equal the amount of the taxablePA-source income for the nonresidentbeneficiary times 3.07 percent (0.0307).

Withholding tax for a nonresident bene-ficiary does not exempt the nonresidentbeneficiary from the requirements forfiling a return. A nonresident beneficiarymust file a Pennsylvania tax return if theyhave at least $33 of income from Penn-sylvania sources regardless of whetheror not the tax that is due on their Penn-sylvania-source income has been paid inby the estate or trust via the withholding.

Income required to be distributed cur-rently is income for the taxable year thatthe fiduciary is under a duty to distribute.The determination of whether trustincome is required to be distributedcurrently depends upon the terms of thetrust instrument and the applicable locallaw. Income required to be distributedcurrently is taxable as such even if, as amatter of practical necessity, it is notactually distributed until after the closeof the trust’s taxable year.

It is immaterial, for purposes of deter-mining whether income is required to bedistributed currently, that the amount ofincome allocated to a particular benefi-ciary is not specified in the instrument.For example, if the fiduciary is requiredto distribute all the income currently, buthas discretion to sprinkle or spray theincome among a class of beneficiaries,or among named beneficiaries, in suchamount as he/she may see fit, all theincome is required to be distributedcurrently, even though the amountdistributable to a particular beneficiaryis unknown until the fiduciary has exer-cised his/her discretion.

Estates, Trusts and BeneficiariesThe taxable income of an estate ortaxable trust is the current income that itretains for future distribution or disburse-ment or currently applies to discharge,

INCOME REQUIRED TO BEDISTRIBUTED CURRENTLY


satisfy or reduce any person’s or its ownobligations. Each estate or taxable trustmust classify and report all income,gains and losses realized in the appro-priate Pennsylvania income classes.

The estate or trust must also submitPA-41 Schedules RK-1 for resident indi-vidual beneficiaries and PA-41 SchedulesNRK-1 for nonresident individual bene-ficiaries with the estate or trust’s PA-41,Fiduciary Income Tax Return.

If the beneficiary is an entity such as apartnership, PA S corporation, estate ortrust, the estate or trust completing thePA-41, Fiduciary Income Tax Return,must provide the entity with both a PA-41Schedule RK-1 and NRK-1 showing theentity beneficiary’s share of taxableincome.

The PA-41 Schedules RK-1 and NRK-1show all of the distributions to each of itsbeneficiaries. The estate or trust mustprovide each beneficiary with a person-alized PA-41 Schedule RK-1 and/orNRK-1, showing that beneficiary’s shareof its 2014 Pennsylvania-taxable income.

A taxable trust (and its beneficiaries)and an estate (and its beneficiaries) arenot subject to tax on income that is setaside exclusively for charitable purposes.See Charitable Trust.

Owners of Partnerships and PA S CorporationsIf the estate or trust is an owner of apartnership or a PA S corporation, theestate or trust must report its share ofthe income (loss), whether distributed ornot, in the same class in which the part-nership or PA S corporation reported theincome.

Each resident estate or trust must submitthe PA-20S/PA-65 Schedule RK-1 andeach nonresident estate or trust mustsubmit the PA-20S/PA-65 ScheduleNRK-1 received from the partnership orPA S corporation.

Credit for Taxes Paid by Pennsylvania Resident Estatesor Trusts to Other StatesPennsylvania taxes the income of aresident estate or trust from sourcesboth inside and outside Pennsylvania.

A resident estate or trust may claim aresident credit if it is subject to and paysincome tax to another state on incomethat is also taxable to Pennsylvaniaduring the same taxable year. Thiscredit is nonrefundable, cannot exceedthe amount of the total Pennsylvania taxliability of the estate or trust and may notbe passed through to a beneficiary.

To claim a resident credit, the estate ortrust must submit a completed PA-40Schedule G-S or G-L. See Line 15 foradditional information.

TIP: Do not complete PA-40Schedule G-R to summarize the

resident credits claimed on the PA-41,Fiduciary Income Tax Return.

Resident BeneficiaryThe taxable income of a resident bene-ficiary from a resident or nonresidentestate or trust is the taxable income,regardless of source, received by theestate or trust for the taxable year that:

• Is required to be distributed currentlyto the beneficiary, or

• Is credited or distributed to thebeneficiary.

Nonresident BeneficiaryThe taxable income of a nonresidentbeneficiary from a resident or nonresi-dent estate or taxable trust is the taxableincome from Pennsylvania sourcesreceived by the estate or trust for itstaxable year that the estate or trustdistributed, was required to distributecurrently or was credited to the bene-ficiary. Withholding at the rate of 3.07percent (0.0307) is required on the tax-able income of a nonresident beneficiaryindividual or estate or trust.

See the PA-41, Fiduciary Income TaxReturn, individual schedules andinstructions to determine what to includewith the PA-41, Fiduciary Income TaxReturn. Also refer to Assembling thePA-41, Fiduciary Income Tax Return.

Income Tax Returns of Estates or TrustsAn executor or administrator must file aPA-41, Fiduciary Income Tax Return, ifhe or she is a fiduciary of:

• A resident estate or trust thatreceived taxable income during itstaxable year; or

• A nonresident estate or trust thatreceived taxable income allocableto Pennsylvania during its taxableyear.

• A nonresident estate or trust thathas a resident beneficiary.

If the department requests, the fiduciaryof an estate or trust must file a copy ofthe will or trust instrument (includingamendments), a written declarationunder the penalties of perjury that the

instrument is a true and complete copy,and a statement indicating which provi-sions, in the fiduciary’s opinion, determinethe extent of taxable income to theestate or trust or the beneficiaries.

Income Tax Returns of Resident Estates or Trusts as Owners in PartnershipsPennsylvania taxes the income of aresident estate or trust from sourcesboth inside and outside of Pennsylvaniaincluding income not distributed to thebeneficiaries. If the estate or trust distrib-utes the income to its beneficiaries, it istaxable to the beneficiaries and not theestate or trust.

If the resident estate or trust is an ownerin a partnership, or entity formed as alimited liability company that is classifiedas a partnership for federal income taxpurposes, the estate or trust shouldreceive a PA-20S/PA-65 Schedule RK-1and a PA-20S/PA-65 Schedule NRK-1from the partnership.

Although a resident estate or trustreceives both the PA-20S/PA-65 Sched-ules RK-1 and Schedules NRK-1 fromthe partnership, a resident estate ortrust must only submit a copy of thePA-20S/PA-65 Schedule RK-1 fromeach partnership and report its share ofincome whether distributed or not asshown on their PA-20S/PA-65 Sched-ules RK-1 from the partnership.

A PA-20S/PA-65 Schedule NRK-1 is alsorequired to report Pennsylvania-sourceincome necessary to calculate theamounts for PA-41 Schedule DD fornonresident beneficiaries. See thePA-41 Schedule DD instructions on thedepartment’s website.

The copy of the PA-20S/PA-65 Sched-ule NRK-1 is not required to be includedwith a resident estate or trust tax return.However, the PA-20S/PA-65 ScheduleNRK-1 is required to be included with anonresident estate or trust tax return.See Nonresident Estates or Trusts asOwners in Partnerships.

If the partnership or limited liabilitycompany does not provide PA-20S/PA-65Schedules RK-1 or NRK-1 to the estateor trust, the estate or trust still mustreport and classify the income (loss)from federal Form 1065 Schedule K-1according to the instructions for eachPennsylvania income class. The estate ortrust must then submit a copy of federalForm 1065 Schedule K-1 and relatedsupporting schedules where applicable

WHAT TO FILE


that provide information as to the classi-fication of the income from the federalForm 1065 Schedule K-1.

Income Tax Returns of Resident Estates or Trusts as Owners in PA S CorporationsPennsylvania taxes the income of aresident estate or trust from sourcesboth inside and outside of Pennsylvaniaincluding income not distributed to thebeneficiaries. If the estate or trust distrib-utes the income to its beneficiaries, it istaxable to the beneficiaries and not theestate or trust.

If the resident estate or trust is an ownerin a PA S corporation or entity formed asa limited liability company that is classifiedas a PA S corporation for federal incometax purposes, the estate or trust shouldreceive a PA-20S/PA-65 Schedule RK-1and a PA-20S/PA-65 Schedule NRK-1from each PA S corporation.

Although a resident estate or trustreceives both the PA-20S/PA-65 Sched-ules RK-1 and Schedules NRK-1 fromthe PA S corporation, a resident estateor trust must only submit a copy of thePA-20S/PA-65 Schedule RK-1 from eachPA S corporation and report its share ofincome whether distributed or not asshown on their PA-20S/PA-65 SchedulesRK-1 from the PA S corporation.

A PA-20S/PA-65 Schedule NRK-1 is alsorequired to report Pennsylvania-sourceincome necessary to calculate theamounts for PA-41 Schedule DD fornonresident beneficiaries. See the PA-41Schedule DD instructions on the depart-ment’s website.

The copy of the PA-20S/PA-65 ScheduleNRK-1 is not required to be includedwith a resident estate or trust tax return.However, the PA-20S/PA-65 ScheduleNRK-1 is required to be included with anonresident estate or trust tax return.See Nonresident Estates or Trusts asOwners in PA S Corporations.

If the estate or trust receives only afederal Form 1120S Schedule K-1, theestate or trust must obtain a PA-20S/PA-65 Schedule RK-1 from the entity.The department will only permit the estateor trust to adjust and reclassify the incomefrom the federal Form 1120S ScheduleK-1 according to Pennsylvania rules inlimited circumstances. See the PA PITGuide, Chapter 16, Pass ThroughEntities, for additional information on theadjustments required and the properclassification of income.

Income Tax Returns of Nonresident Estates or Trusts asOwners in PartnershipsPennsylvania law imposes fiduciaryincome tax on the income of a nonresi-dent estate or trust from Pennsylvaniasources. A nonresident estate or trustmust ignore items of income (loss), cost,expense and liability that are not directlyrelated to Pennsylvania when calculatingits Pennsylvania-taxable income.

If the nonresident estate or trust is anowner in a partnership, the partnershipmust provide the nonresident estate ortrust a PA-20S/PA-65 Schedule RK-1and a PA-20S/PA-65 Schedule NRK-1showing the nonresident estate or trust’sshare of Pennsylvania-taxable income(loss) whether distributed or not. Thefederal Form 1065 Schedule K-1 is notan acceptable substitute.

When the nonresident estate or trust,as an owner in a partnership, receivesa PA-20S/PA-65 Schedule RK-1 andNRK-1 from another entity, it has theclassified income (loss) amount tocomplete the PA-41, Fiduciary IncomeTax Return. The nonresident estate ortrust, as an owner in a partnership, isrequired to file both the PA-20S/PA-65Schedule RK-1 and NRK-1 with theirPA-41, Fiduciary Income Tax Return.

Example. When a nonresident estate ortrust receives income from a partnership,the nonresident estate or trust must filea copy of the PA Schedule RK-1 andNRK-1 it received from the partnershipalong with the PA-41, Fiduciary IncomeTax Return.

Each nonresident estate or trust, as anowner in a partnership, must submit withthe PA-41, Fiduciary Income Tax Return:

• A complete copy of its federal incometax return including all schedules,statements, federal schedules K-1;

• A copy of PA-20S/PA-65 SchedulesRK-1 that it provides to its residentbeneficiaries;

• A copy of PA-20S/PA-65 SchedulesNRK-1 that it provides to its nonres-ident beneficiaries;

• The PA-20S/PA-65 Schedules RK-1and NRK-1 that the nonresidentestate or trust received from otherentities, whether the income wasdistributed or not.

If the partnership or entity formed as alimited liability company that is classifiedas a partnership for federal income taxpurposes has Pennsylvania-sourceincome but does not provide to the non-

resident estate or trust a PA-20S/PA-65Schedule RK-1 and NRK-1, the nonres-ident estate or trust still must report andclassify the income (loss) from federalForm 1065 Schedule K-1 according tothe instructions for each Pennsylvaniaincome class.

The nonresident estate or trust, as anowner in a partnership, must then submita copy of its federal Form 1065 ScheduleK-1 and related supporting scheduleswhere applicable that provide informationas to the classification of the income fromthe federal Form 1065 Schedule K-1. Ifthe income (loss) is being reported toPennsylvania from a federal Form 1065Schedule K-1 and the income (loss) isnot 100 percent of the amount from thefederal Form 1065 Schedule K-1, aschedule or written explanation must besubmitted along with the federal Form1065 Schedule K-1 explaining how theamount reported was determined.

If a nonresident estate or trust does nothave resident beneficiaries, the nonres-ident estate or trust reports Pennsylva-nia-source income in the appropriateclasses on the PA-41, Fiduciary IncomeTax Return.

If a nonresident estate or trust hasresident beneficiaries, the nonresidentestate or trust reports worldwide incomein the appropriate classes on the PA-41,Fiduciary Income Tax Return.

Income Tax Returns ofNonresident Estates or Trusts asOwners in PA S CorporationsPennsylvania law imposes fiduciaryincome tax on the income of a nonresi-dent estate or trust from Pennsylvaniasources. A nonresident estate or trustmust ignore items of income (loss), cost,expense and liability that are not directlyrelated to Pennsylvania when calculatingits Pennsylvania-taxable income.

If the nonresident estate or trust is anowner in a PA S corporation, the PA Scorporation must provide the nonresidentestate or trust a PA-20S/PA-65 ScheduleRK-1 and NRK-1 showing the nonresidentestate or trust’s share of Pennsylvania-taxable income (loss) whether distributedor not. The federal Form 1120S ScheduleK-1 is not an acceptable substitute.

When the nonresident estate or trust, asan owner in a PA S corporation, receivesa PA-20S/PA-65 Schedule RK-1 andNRK-1 from another entity, it has theclassified income (loss) amount tocomplete the PA-41, Fiduciary IncomeTax Return.


The nonresident estate or trust, as anowner in a PA S corporation, is requiredto file both the PA-20S/PA-65 ScheduleRK-1 and NRK-1 with their PA-41, Fidu-ciary Income Tax Return.

Example. When a nonresident estate ortrust receives income from a PA S cor-poration, the nonresident estate or trustmust file a copy of the PA SchedulesRK-1 and NRK-1 it received from thePA S corporation along with the PA-41,Fiduciary Income Tax Return.

Each nonresident estate or trust, as anowner in a PA S corporation, must submitwith the PA-41, Fiduciary Income TaxReturn:

• A complete copy of its federal incometax return including all schedules,statements, federal schedules K-1;

• A copy of PA-20S/PA-65 SchedulesRK-1 that it provides to its residentbeneficiaries;

• A copy of PA-20S/PA-65 SchedulesNRK-1 that it provides to its nonres-ident beneficiaries; and

• The PA-20S/PA-65 Schedules RK-1and NRK-1 that the nonresidentestate or trust received from otherentities, whether the income wasdistributed or not.

If the PA S corporation or entity formedas a limited liability company that isclassified as a PA S corporation for federalincome tax purposes has Pennsylvania-source income but does not provide tothe nonresident estate or trust a PA-20S/PA-65 Schedule RK-1 and NRK-1, thenonresident estate or trust still mustreport and classify the income (loss)from federal Form 1120S Schedule K-1according to the instructions for eachPennsylvania income class.

If the nonresident estate or trust receivesonly a federal Form 1120S Schedule K-1,the nonresident estate or trust mustobtain a PA-20S/PA-65 Schedule RK-1from the entity. The department will onlypermit the nonresident estate or trust toadjust and reclassify the income fromthe federal Form 1120S Schedule K-1according to Pennsylvania rules in limitedcircumstances. See the PA PIT Guide,Chapter 16, Pass Through Entities, foradditional information on the adjustmentsrequired and the proper classification ofincome.

If a nonresident estate or trust does nothave resident beneficiaries, the nonres-ident estate or trust reports Pennsylva-nia-source income in the appropriateclasses on the PA-41, Fiduciary IncomeTax Return.

If a nonresident estate or trust has resi-dent beneficiaries, the nonresident estateor trust reports worldwide income inthe appropriate classes on the PA-41,Fiduciary Income Tax Return.

Income Tax Returns of Nonresident Estates or Trustswith Resident BeneficiariesPennsylvania law requires a nonresidentestate or trust with resident beneficiariesto file a PA-41, Fiduciary Income TaxReturn, regardless of whether there isPennsylvania-source income or not. Thenonresident estate or trust must reportthe worldwide income in the appropriateclasses on the PA-41, Fiduciary IncomeTax Return. The nonresident estate ortrust must also report its worldwideincome and calculate the amounts forPA-41 Schedule DD. See the PA-41Schedule DD instructions on the depart-ment’s website. A nonresident estate ortrust must provide each resident benefici-ary with a PA-41 Schedule RK-1 showingthe resident beneficiary’s share of thedistributed/distributable income.

A nonresident estate or trust with aPennsylvania resident beneficiary mustinclude a copy of the resident state’sfiduciary income tax return or a copy of anaffidavit certifying the state of residencyof the estate or trust if the estate ortrust’s state of residency does not havean income tax. In addition, the nonresi-dent estate or trust must include a copyof federal Form 1041 with the PA-41,Fiduciary Income Tax Return.

Further, when a nonresident estate ortrust with resident beneficiaries is anowner in a PA S corporation, partnershipor entity formed as a limited liabilitycompany that is classified as a partner-ship or PA S corporation for federalincome tax purposes, the estate ortrust must submit a copy of each ofthe PA-20S/PA65 Schedules RK-1 andPA-20S/PA-65 Schedules NRK-1 that itreceives from each entity. The nonresi-dent estate or trust must also report itsworldwide income and calculate theamounts for PA-41 Schedule DD. Seethe PA-41 Schedule DD instructions onthe department’s website.

Income Tax Returns of Nonresident Estates or Trustswith Nonresident BeneficiariesA nonresident estate or trust with noresident beneficiaries that is an owner ina PA S corporation, partnership or entityformed as a limited liability company thatis classified as a partnership or PA Scorporation for federal income tax

purposes must only submit a copy of thePA-20S/PA-65 Schedules NRK-1 that itreceives from each entity. If a nonresidentestate or trust does not have residentbeneficiaries, the nonresident estate ortrust must only report Pennsylvania-source income in the appropriate classeson the PA-41, Fiduciary Income TaxReturn. The nonresident estate or trustmust report its Pennsylvania-sourceincome and calculate the amounts forPA-41 Schedule DD, Column B. Thenonresident estate or trust must reportits worldwide income and calculate theamounts for PA-41 Schedule DD. Seethe PA-41 Schedule DD instructions onthe department’s website.

Income Tax Returns of Pennsylvania Resident Estatesor Trusts as Beneficiaries ofPennsylvania Estates or TrustsIf the estate or trust is a beneficiary of aPennsylvania estate or trust, the estateor trust beneficiary should receive aPA-41 Schedule RK-1 and PA-41Schedule NRK-1 from the Pennsylvaniaestate or trust entity.

A PA-41 Schedule RK-1 reports world-wide income necessary to calculate theamounts for PA-41 Schedule DD. Seethe PA-41 Schedule DD instructions onthe department’s website.

As a resident beneficiary of a residentestate or trust, the resident estate or trustreports the income from the Pennsylvaniaestate or trust reports the income fromthe PA-41 Schedule RK-1, Line 6 onPA-41 Schedule J and on the PA-41,Fiduciary Income Tax Return, Line 6.

A PA-41 Schedule NRK-1 reports thePennsylvania-source income to calculateamounts for Column b on PA-41 ScheduleDD when there are nonresident benefi-ciaries. See the PA-41 Schedule DDinstructions on the department’s website.If there are no nonresident beneficiaries,the PA-41 Schedule NRK-1 is not usedby estates or trusts.

IMPORTANT: An estate or trustas a beneficiary should receive

PA-41 Schedules RK-1 and NRK-1, if ithas income from a resident estate ortrust. It is important to remember thatthe PA-41 Schedules RK-1 and NRK-1submitted to the resident beneficiaryshould reflect the taxable income toPennsylvania residents even if theestate or trust is a nonresident.

If the nonresident estate or trust doesnot provide to the Pennsylvania estate


or trust a PA-41 Schedule RK-1 andNRK-1, the Pennsylvania estate or truststill must include and report the incomefrom federal Form 1041 Schedule K-1as a single class of income; estate ortrust income. The income from thefederal Form 1041 Schedule K-1 shouldbe added together to arrive at the estateor trust income to be reported for PApurposes. However, if any losses arereported on the federal Form 1041Schedule K-1, only losses within thesame PA class of income (usually gainor loss on the sale, exchange or dispo-sition of property) may be netted withother gains in the same PA class ofincome. Losses from different PA classesof income may not be netted againstincome from another PA class of incomewhen calculating the income from afederal Form 1041 Schedule K-1. A copyof the federal Form 1041 Schedule K-1is required to be included with the PA-41,Fiduciary Income Tax Return.

If the estate or trust beneficiary receivesa PA-41 Schedule RK-1 or NRK-1, acopy of that document is not required tobe submitted with the PA-41, FiduciaryIncome Tax Return.


As a resident beneficiary of a residentestate or trust, the resident estate ortrust reports the income from the PA-41Schedule RK-1, Line 6 on PA-41Schedule J and on the PA-41, FiduciaryIncome Tax Return, Line 6.


Income Tax Returns of Pennsylvania Resident Estatesor Trusts as Beneficiaries ofNonresident Estates or TrustsIf the Pennsylvania estate or trust is abeneficiary of a nonresident estate ortrust, the nonresident estate or trust mayprovide the Pennsylvania estate or trustbeneficiary with a PA-41 Schedule RK-1and NRK-1 showing the estate or trust’sshare of Pennsylvania-taxable income

(loss) whether distributed or not if theestate or trust is required to file the PA-41,Fiduciary Income Tax Return. See WhoMust File and Who Does Not File.

If the nonresident estate or trust doesnot provide to the Pennsylvania estateor trust a PA-41 Schedule RK-1 andNRK-1, the Pennsylvania estate or truststill must include and report the incomefrom federal Form 1041 Schedule K-1as a single class of income; estate ortrust income. The income from thefederal Form 1041 Schedule K-1 shouldbe added together to arrive at the estateor trust income to be reported for PApurposes. However, if any losses arereported on the federal Form 1041Schedule K-1, only losses within thesame PA class of income (usually gainor loss on the sale, exchange or dispo-sition of property) may be netted withother gains in the same PA class ofincome. Losses from different PA classesof income may not be netted againstincome from another PA class of incomewhen calculating the income from afederal Form 1041 Schedule K-1. A copyof the federal Form 1041 Schedule K-1 isrequired to be included with the PA-41,Fiduciary Income Tax Return.

If the estate or trust beneficiary receivesa PA-41 Schedule RK-1 or NRK-1, a copyof that document is not required to besubmitted with the PA-41, FiduciaryIncome Tax Return.


As a resident beneficiary of a nonresidentestate or trust, the resident estate ortrust reports the income from the PA-41Schedule RK-1, Line 6 on PA-41 Sched-ule J and on the PA-41, Fiduciary IncomeTax Return, Line 6.


PA-20S/PA-65 Schedules RK-1 and NRK-1These schedules show the share ofincome (loss) for each Pennsylvaniaincome class from PA S corporations,

partnerships and entities formed as limitedliability companies that are classified aspartnerships or PA S corporations forfederal income tax purposes.

If the estate or trust received anyguaranteed payments from a partner-ship or limited liability company, addthose payments to the estate or trust’sshare of income (loss) as shown on thePennsylvania schedules.

The PA S corporation, partnership orlimited liability company deducts allallowable expenses and other allowableadjustments.

An estate or trust may not deduct addi-tional expenses incurred on behalf of thePA S corporation, partnership or limitedliability company that it may be able todeduct for federal purposes.

Assemble the PA-41, Fiduciary IncomeTax Return, forms and schedules in thefollowing order:

• Signed original PA-41, FiduciaryIncome Tax Return, (Pages 1 and 2).Do not mail a photocopy;

• A copy of the federal extension orstatement showing the electronicallyfiled extension confirmation numberif REV-276 is not required to be filed;

• Copies of federal Forms 1099, W-2,or other documents showing Penn-sylvania tax withheld;

• Copies of any completed Pennsylva-nia schedules in alphabetical order,if not otherwise listed below;

• Copies of all statements providinglistings for or additional explanationsof the income (loss) on the PA-41,Fiduciary Income Tax Return, or itsschedules in the order of presenta-tion on the PA-41, Fiduciary IncomeTax Return, or in relation to theappropriate schedule;

• Copies of all PA-41 and PA-20S/PA-65 Schedules RK-1, PA-41 andPA-20S/PA-65 Schedules NRK-1,and federal Form 1065 SchedulesK-1, federal Form 1120S SchedulesK-1 or federal Form 1041 SchedulesK-1 for income (loss) reported frompartnerships, S corporations; or otherestates or trusts when PA SchedulesRK-1 and NRK-1 are not received;

• Complete copy of federal Form 1041for the estate or trust including allschedules and attachments;

ASSEMBLING THE PA-41,FIDUCIARY INCOME

TAX RETURN


• Copies of any PA-40 Schedule G-Sand G-L completed on behalf of theestate or trust; and

• Copies of the PA-41 Schedules RK-1and NRK-1 for each beneficiary ofthe estate or trust.

TIP: Assemble documents in theorder above.

• Do not staple documents.

• On any additional statements youinclude with your return, pleaseinclude the estate or trust’s name,FEIN, tax year, and a brief line ref-erence to PA-41, Fiduciary IncomeTax Return, or PA-41 schedules.

IMPORTANT: Do not create asubstitute PA-41, Fiduciary Income

Tax Return, that has not been approvedby the department. A spreadsheet is anunapproved and unacceptable tax form.Unapproved tax forms filed with thedepartment may be rejected and returnedto the taxpayer or tax return preparer.This may result in an assessment ofinterest and penalty.

If you are filing any tax form other than anofficial tax form, please read Miscella-neous Tax Bulletin 2008-02 available onthe department’s website.

The estimated tax rules apply to:

• Resident estates or trusts;

• Nonresident estates or trusts thatexpect to have taxable income fromsources within Pennsylvania; and

• A decedent’s estate or trust createdby the decedent to receive theresidue of the decedent’s estate ortrust beginning in the third year afterthe decedent’s death.

If the estate or trust expects more than$8,000 of Pennsylvania-taxable incomein 2014, the fiduciary must file a PA-40ESR F/C, Declaration of Estimated Taxand make installment payments.

Estates and trusts follow federal annual-ization of income rules to determine theamount of quarterly estimated paymentsdue.

Use the following forms to determine theamount of quarterly estimated paymentdue:

• REV-413(F), Instructions for Esti-mating PA Fiduciary Income Tax(Estates and Trusts);

• REV-414(F), Estimated Tax Work-sheet (Estates and Trusts);and

• REV-1630F, Underpayment of Esti-mated Tax by Fiduciaries.

These forms are available on the depart-ment’s website for downloading. See theForms and Publications tab in the centerof the department’s website.

Forms and schedules can also be ob-tained through one of the Forms OrderingServices. See Forms and Publications inthe left navigation menu on the depart-ment’s website or refer to TaxpayerServices at the end of these instructions.

The department will bill you for anypenalty and interest that you owe.

Calculate penalty and interest by visitingthe Revenue e-Services Center on thedepartment’s website.

Estimated Underpayment PenaltyThe estate or trust is subject to thispenalty if:

• It owes more than $246 on its return(3.07 percent on $8,000 of Pennsyl-vania-taxable income); and

• The estate or trust made estimatedpayments, but did not meet one ofthe exceptions described below.

The department will not impose thispenalty on an estate or trust when:

• Its total timely estimated paymentsand credits are at least 90 percentof the tax due as shown on its 2014PA-41, Fiduciary Income Tax Return;

• Its total timely estimated paymentsand credits are at least equal to anamount calculated using the currentyear's tax rate and the income on itsprior year's PA-41, Fiduciary IncomeTax Return;

• For each installment period, itstimely estimated payment is at least90 percent of the actual tax due onthe income earned or received foreach installment period; or

• This is the first or second year theestate or trust receiving the residue ofa probate estate is required to file aPA-41, Fiduciary Income Tax Return.

The fiduciary should calculate theestimated underpayment penalty onREV-1630-F, Underpayment of EstimatedTax by Fiduciaries, and include it withthe PA-41, Fiduciary Income Tax Return.Fiduciaries should also include theREV-1630 when either of the exceptions

to the interest penalty are met asindicated on that form.

The department will send a notice to theestate or trust if it owes this penalty. Afiduciary who disagrees with the depart-ment's notice should submit REV-1630Fto support the calculations for the estateor trust or to claim an exception.

Interest for Nonpayment or Late Payment of TaxIf the estate or trust does not pay itstax by the due date, the departmentimposes interest from the due date tothe date of payment. The annual interestrate is the rate established by the U.S.Secretary of the Treasury that is in effecton Jan. 1 of each calendar year.

Penalties for Not Filing or Filing a Late ReturnIf the estate or trust does not file itsPA-41, Fiduciary Income Tax Returntimely, Pennsylvania law imposes apenalty, unless the estate or trust canshow reasonable cause for late filing.

The penalty is 5 percent of the tax duefor each month or fraction of a monththat the PA-41, Fiduciary Income TaxReturn, is late. The maximum penalty is25 percent.

The minimum penalty is $5. Any estateor trust that attempts to evade or defeattheir Pennsylvania fiduciary income taxresponsibility is subject to prosecution.

Penalty for Uncollectible FundsPennsylvania tax law imposes an addi-tional penalty on funds submitted viacheck and not paid on presentment (badchecks). The penalty is 10 percent of theface amount of the check. The penaltyimposed cannot exceed $1,000 nor beless than $25.

Other Penalties • A 5 percent underpayment penalty

if the estate or trust does not paythe full amount of its tax due by theoriginal due date; and

• An additional penalty of 25 percentof the tax due on the unreportedincome, if the estate or trust does notreport an amount of taxable incomethat is more than 25 percent of thetaxable income that it reported on itsPA-41, Fiduciary Income Tax Return.

IMPORTANT: The departmentmay assess both late filing and

underpayment penalties if the fiduciaryfiles the PA-41, Fiduciary Income TaxReturn, after the due date, or extendeddue date, and does not pay the tax dueby the original due date.

ESTIMATED FIDUCIARY INCOME TAX PAYMENTS

PENALTY AND INTEREST


Pennsylvania law also may impose:

• An additional 50 percent penalty onthe underpayment of the tax due ifany part of the underpayment is dueto fraud;

• A $500 penalty if the estate or trust:

◦ Files a return that contains infor-mation that indicates the liability issignificantly incorrect.

◦ Files a return frivolously, or in amanner to delay or impede theadministration of the tax law.

• A penalty of $250 for each instancewhen any person required to furnishan information return either furnishesa false or fraudulent return, or failsto furnish an information return.

Abatement of PenaltiesPenalties may be abated only if theestate or trust can show reasonablecause for abatement in its petition forreassessment of the penalty. To betimely, the petition must be filed with thedepartment’s Board of Appeals within90 days of the mailing date of theassessment of the penalty.

NOTE: The nonresident withhold-ing tax is not required to be prepaid

as part of the estimated income tax ofan estate or trust and is not subject tothe estimated underpayment penalty.However, any nonresident withholdingtax not paid by the original due date ofthe PA-41, Fiduciary Income Tax Return,is subject to the late payment penalty aswell as interest. In addition, any nonres-ident withholding tax not paid by theoriginal due date of the PA-41, FiduciaryIncome Tax Return, is subject to the latefiling penalty as well as interest if thefiduciary files the return after the originaldue date of the return (if no extensionwas requested) or if the fiduciary filesthe return after the extended due date(of a return on extension).

Additional Tax, Penalties andInterestFiduciaries of estates and trusts that failto keep an accurate list of beneficiarieswill be subject to the tax, penalties andinterest on behalf of any nonresidentbeneficiaries who are determined by thedepartment to be resident beneficiaries.

If the due date falls on a Saturday, Sundayor business holiday, the estate or trustmust file the PA-41, Fiduciary IncomeTax Return, no later than midnight on thefirst business day following the Saturday,

Sunday or business holiday. The U.SPostal Service postmark date on theenvelope is proof of timely filing. Penn-sylvania follows the same tax year asfederal rules.

For a calendar-year filer, file the 2014PA-41, Fiduciary Income Tax Return, onor before April 15, 2015, including anextension date of Sept. 15, 2015.

For a fiscal-year filer, file the 2014 PA-41,Fiduciary Income Tax Return, on orbefore the 15th day of the fourth monthfollowing the close of the fiscal yearincluding an extension of five monthsafter the 15th day of the fourth monthfollowing the close of the fiscal year.

If the estate or trust cannot file by theoriginal due date, request an extension oftime to file. See Extension of Time To File.

If the estate or trust does not file its returnby the original due date or extended duedate and does not pay the tax due bythe original due date, the departmentimposes late filing and underpaymentpenalties.

Calendar-Year Estate or TrustAn estate or trust that files on a calendaryear basis, reports all taxable incomerecognized between Jan. 1 and Dec. 31.See When To File.

An estate or trust reports all gross taxableincome (loss) allocable or apportionableto Pennsylvania, regardless of the amountof its income (loss) and/or whether ornot the income was distributed.

Fiscal-Year Estate or TrustA fiscal year is a period of 12 consecu-tive months without regard to the calen-dar year. The fiscal year is designatedby the calendar year in which it begins.

A fiscal-year estate or trust reports alltaxable income recognized during thefiscal year. An estate or trust reports allgross taxable income (loss) allocable orapportionable to Pennsylvania, regard-less of the amount of its income (loss)and/or whether or not the income wasdistributed.

IMPORTANT: An estate or trustthat elects to file on a fiscal-year

basis must use tax-year forms in whichthe tax year begins.

Changing From a Fiscal-Year Estate or Trust to a Calendar-Year Estate or TrustTo change from a fiscal-year filer to acalendar-year filer, the entity files ashort-year return. See How To File A

Short-Year Return. The entity then filesthe next calendar year on or before April15, unless an extension of time to filehas been granted.

The entity is also required to submit acopy of its federal election Form 1128,Application to Adopt, Change or Retaina Tax Year, with both the short-yearreturn and the calendar-year return.

Short-Year ReturnA short year is an accounting periodshorter than one year and not a 52-53week taxable year.

A short-year return is required for thefollowing reasons:

• Changes in the annual accountingperiod, for example, the entitychanges from a fiscal-year filer to acalendar-year filer; or

• An entity is in existence during onlypart of the tax year. For example, ifthe year is the initial. See How ToFile A Short-Year Return.

How to File a Short-Year ReturnIf an estate or trust is required to file ashort-year return, the entity must use themost recent PA-41, Fiduciary IncomeTax Return, schedules and forms on thedepartment’s website. If the tax year onthe forms is not the current tax yearand/or the tax year for which the entityis filing, then the entity must cross outand write the correct tax year for whichit is filing a short-year return.

A short-year return is not a fiscal-yearreturn. Do not fill in the fiscal-year oval onthe PA-41, Fiduciary Income Tax Return.

Short-Year Period of a Fiscal-Year Filer for an Initial Year Return (Beginning and EndingDate in Same Calendar Year)If an estate or trust is a fiscal-year filerand the initial return is for a short-yearperiod, where the beginning date of theshort-year return is in the same calendaryear as the end date of the short-yearreturn, the estate or trust must use theprior calendar-year tax forms. Do not usethe calendar-year forms related to thebeginning date of the short-year return.This will delay processing of your return.

Fill in the fiscal-year filer oval on thePA-41, Fiduciary Income Tax Return,and the fiscal-year oval on the PA-41Schedules RK-1 and/or NRK-1.

Example. Estate of Taxpayer A, who dieson Jan. 21, 2015, elects to have a fiscal-year end of April 30. Therefore, Estate ofTaxpayer A must file a short-year return

WHEN TO FILE


for the period Jan. 22, 2015, to April 30,2015, using the 2014 tax year form to filethe short-year return.

Short-Year Period of a Fiscal-Year Filer for an Initial-Year Return (Beginning and EndingDate in Different Calendar Years)If an estate or trust is a fiscal-year filerand the short-year period begins in thecalendar year prior to the calendar yearin which the short-year period begins,the estate or trust should use the calen-dar-year forms for the year in which theshort-year period begins.


Example. Estate of Taxpayer B, who diedon Nov. 25, 2014, elects a fiscal-yearend of May 31. The Estate of TaxpayerB must file a short-period return for theperiod Nov. 25, 2014 to May 31, 2015,using the 2014 tax year form.

Short-Year Period of a Fiscal-Year Filer for a Final-Year ReturnIf an estate or trust is a fiscal-year filerand the final return is for a short-yearperiod, the estate or trust should use thetax-year forms for the year in which theshort-year period begins. If the tax formsare not available when the return is due,use the prior tax-year forms and crossout and write the correct tax year on theforms.


Example A. Trust A has a fiscal year ofApril 1 to March 31. The trust is dissolveddue to the assets in the trust becomingworthless during Oct. 2015, of its mostcurrent fiscal year. The trust should waituntil Jan. 2016 to use 2015 tax-yearforms.

Example B. Using the same facts asExample A except the trust dissolved inJuly 2015, the trust should use 2014 tax-year forms and cross out “2014” on theforms and write in 2015 on the forms.

Short-Year Period Begins andEnds in the Same Year for aFinal-Year ReturnIf the estate or trust is filing a short-yearperiod that begins and ends in the sameyear and the return is a final-year return,the estate or trust must use the prioryear calendar tax forms if the calendar-year tax forms are not available at the

time the return is required to be filed.Otherwise, use the calendar-year taxforms for that calendar year. If priorcalendar year tax forms must be used,cross out and write the correct tax yearfor which the estate or trust is filing ashort-year period return. If either situationapplies, fill in the short-year oval on thePA-41 Schedules RK-1 and/or NRK-1.

Example. Estate of Taxpayer C dies onJan. 20, 2015, and is resolved by June30, 2015, with all assets dispersed to theheirs. The Estate of Taxpayer C must filea short-year return for the period Jan.20, 2015 to June 30, 2015, using the2014 tax year form. Cross out 2014 onthe forms and write 2015 on the formswhen filing the short-year return.

Example. Using the same facts as theexample above except the estate com-pleted its transaction by Nov. 30, 2015,the estate should wait until Jan. 2016 tofile and use 2015 tax forms to file theshort-year return.

Short-Year Period for an InitialYear ReturnIf the estate or trust is filing a short- yearreturn for an initial tax year, the estate ortrust must use prior calendar year taxforms and cross out and write the correcttax year for which the estate or trust isfling a short-year return.

Fill in the short-year oval on the PA-41Schedules RK-1 and/or NRK-1.

Short-Year Period for a Calendar-Year ReturnIf the estate or trust is a calendar-yearfiler and files a short-year period returnuse the tax-year forms for the tax yearin which the short period begins.

Do not fill in the fiscal-year oval on thePA-41, Fiduciary Income Tax Return. Fillin the short-year oval on the PA-41Schedules RK-1 and/or NRK-1.

If the estate or trust cannot file the PA-41,Fiduciary Income Tax Return, on or beforethe original return due date, the estateor trust can use REV-276, Application forExtension of Time to File, to file for afive-month extension.

The department will not grant an exten-sion of more than five months, except forestates and trusts outside the U.S.

An extension of time to file does notextend the full payment of the tax. Pay infull the amount reasonably estimated as

the estate’s or trust’s Pennsylvania taxdue on or before the original return duedate.

Follow one of these procedures whenapplying for an extension of time to file:

1. If the estate or trust owes incometax or nonresident withholding taxwith the PA-41, Fiduciary Income TaxReturn, the estate or trust must payby check with a timely filed REV-276,Application for Extension of Time toFile, on or before the original returndue date. The original return duedate is usually April 15 for calendar-year filers and the 15th day of thefourth month following the close ofthe fiscal year for fiscal-year filers.The department will not send a lettergranting the extension, but it will writeif there is a question concerning therequest.

2. If the estate or trust has an extensionof time to file federal Form 1041 anddoes not owe Pennsylvania incometax or nonresident withholding tax onthe 2014, PA-41, Fiduciary IncomeTax Return, the department willautomatically grant the estate or trusta five-month extension to file thereturn. The estate or trust is notrequired to submit REV-276 or fed-eral Form 7004 before the originalreturn due date. However, federalForm 7004 must be submitted withthe filing of the PA-41, FiduciaryIncome Tax Return.

3. If the estate or trust does not havean extension to file federal Form1041, request an extension onREV-276, and file it on or before thedue date of the return.

Mail REV-276, with or without apayment, to:

PA DEPARTMENT OF REVENUEBUREAU OF INDIVIDUAL TAXESPO BOX 280504HARRISBURG PA 17128-0504

File a Paper REV-276A REV-276 can only be filed in paperform when requesting an extension forthe PA-41, Fiduciary Income Tax Return.It cannot be filed electronically.

How To File the PA-41, Fiduciary Income Tax Returnwith an ExtensionWhen filing your PA-41, FiduciaryIncome Tax Return, with an extension:

• Fill in the extension request ovalat the top of your PA-41, FiduciaryIncome Tax Return.

EXTENSION OF TIME TO FILE


• If you did not file REV-276, submit acopy of federal Form 7004 with yourPA-41, Fiduciary Income Tax Return.

• If you electronically filed your federalextension, submit a statement withan explanation and the confirmationnumber you received.

• If you submitted REV-276, you do nothave to submit the extension paper-work with your PA-41, FiduciaryIncome Tax Return.

IMPORTANT: An extension oftime to file the PA-41, Fiduciary

Income Tax Return, does not extendthe fiduciary income tax or nonresidentwithholding tax payment deadline.

The department will assess an under-payment penalty if:

• The estate or trust does not pay atleast 90 percent of the 2014 tax dueby April 15, 2015;

• Any estate or trust which uses a fiscalfiling year does not pay at least 90percent of the 2014 tax due by the15th day of the fourth month followingthe close of the fiscal year; SeeEstimated Underpayment Penalty; or

• The estate or trust does not pay theremaining tax with a timely filedPA-41, Fiduciary Income Tax Return.

The department will charge interest onthe amount not paid by the due date ofthe return.

NOTE: Do not submit REV-276,Application for Extension of Time

To File, with the PA-41, Fiduciary IncomeTax Return.

Extension Due DatesSee When To File.

If there is tax due on Line 20 of thePA-41, Fiduciary Income Tax Return, mailthe return, check and PA-V voucher to:

PA DEPARTMENT OF REVENUEBUREAU OF IMAGING ANDDOCUMENT MANAGEMENTPO BOX 280413HARRISBURG PA 17128-0413

If there is an overpayment on Line 23 ofthe PA-41, Fiduciary Income Tax Return,mail the return to:


If there is no tax due or overpayment,mail the PA-41, Fiduciary Income TaxReturn, to:


Use the 2014 PA-41 Payment Voucher(PA-V) with your payment if you owe taxwith your 2014 PA-41, Fiduciary IncomeTax Return. Do not use this voucher forany other purpose.

When filing the PA-41, Fiduciary IncomeTax Return, print the correct informationon the PA-41, Fiduciary Income TaxReturn, and submit a check or moneyorder along with the PA-V made payableto the PA Dept. of Revenue in the sameenvelope with the PA-41, FiduciaryIncome Tax Return.

Do not staple check or money order toyour return or the PA-V. Place your PA-Vand check or money order in the envelopewith your PA-41, Fiduciary Income TaxReturn. Do not send cash. See Whereto File.

The estate or trust must pay the balanceof tax due shown on the PA-41, FiduciaryIncome Tax Return, by April 15, 2015.

Fiscal-year filers must pay by the 15thday of the fourth month following the closeof the tax year. Make the check or moneyorder payable to PA Dept. of Revenue.

The estate or trust must file a PA-41,Fiduciary Income Tax Return, even if nopayment is due.

Payment with a Fill-in PA-V FormComplete a fill-in PA-V form for paymentincluded with the fill-ins of a return. Thefill-in PA-V form and instructions areavailable on the department’s website atwww.revenue.state.pa.us under Formsand Publications, Personal Income Tax.

Using the fill-in PA-V form will enable thedepartment to more accurately processyour payment.

Payment Without A PA-V FormMake your check or money orderpayable to: PA Dept. of Revenue. On thecheck or money order:

• Print the estate’s or trust’s FEIN(including “F”).Example. 12-3456789F;

• "2014 PA-41"; and

• Daytime telephone number of theestate’s or trust’s representative.

If after filing the PA-41, Fiduciary IncomeTax Return, an estate or trust discoversthat an incorrect return has been submit-ted to the department and/or federalForm 1041 has been amended or if theInternal Revenue Service changes orcorrects any item of income, gain (loss)previously reported, the estate or trustmust submit an amended PA-41, Fiduci-ary Income Tax Return, within 30 days ofdiscovering the error or omission to thePennsylvania Department of Revenue.

WHEN TO AMEND THEPA-41, FIDUCIARY INCOMETAX RETURNOver-Reported Fiduciary IncomeIf the estate or trust over reported income,failed to claim allowable credits, failed toreport allowable deductions, or eventstranspired that decreased its reportablePennsylvania-taxable income, includingan IRS Report of Change, the entitymust file an amended PA-41, FiduciaryIncome Tax Return.

The amended return must be filed withinthree years of the original due date orextended due date of the PA-41, FiduciaryIncome Tax Return. The amended PA-41Schedules RK-1 and/or NRK-1 must showthe corrected Pennsylvania-taxableincome, so the beneficiaries can requestrefunds of Pennsylvania income tax theyoverpaid.

In order to obtain any refunds, benefici-aries must also file an amended Penn-sylvania tax return within three years ofthe original due date of their return.

Under-Reported Fiduciary IncomeIf the estate or trust under reportedincome, erroneously claimed credits ordeductions to which it was not entitled,or events transpired that increasedreportable Pennsylvania-taxable income,including an IRS Report of Change,the entity must file an amended PA-41,Fiduciary Income Tax Return, within 30days from the determination of suchincrease. The amended PA-41 Sched-ules RK-1 and/or NRK-1 must show thecorrected Pennsylvania-taxable incomeso the beneficiaries can pay the tax due.

The beneficiaries must also file anamended Pennsylvania tax return within30 days of the discovery of the error toreport any increase in income for taxesdue.

WHERE TO FILE

HOW TO PAY

AMENDING THE PA-41,FIDUCIARY INCOME

TAX RETURN


IMPORTANT: Do not file anamended PA-41, Fiduciary Income

Tax Return, after the department issuesan assessment if the amendment relatesto the same taxable year and assesseditem of income, gain, deduction or loss.In this instance, either file a timely petitionfor reassessment or pay the assessmentand file a timely petition for a refund viathe Revenue e-Services Center.

Taxpayers may also obtain REV-65,Board of Appeals Petition Form on thedepartment’s website.

CAUTION: Do not file an amendedreturn to change the residency

status of a trust. You must file a REV-65Petition for Refund, with the Board ofAppeals.

HOW TO AMEND THE PA-41,FIDUCIARY INCOME TAXRETURNTo file an amended PA-41, FiduciaryIncome Tax Return, use the appropriatereturn for the tax year you are correctingand be sure to fill in the amended ovalat the top of the tax form.

Beginning with tax year 2008, SchedulePA-41X must be submitted with anamended PA-41, Fiduciary Income TaxReturn. Schedule PA-41X is not a returnand cannot be filed without the amendedPA-41, Fiduciary Income Tax Return.

As a result of Schedule PA-41X, theinstructions to file an amended PA-41,Fiduciary Income Tax Return, are differentthan those for earlier tax years. Theinstructions to file an amended PA-41,Fiduciary Income Tax Return, for taxyears beginning in 2008 are as follows:

1. Complete Schedule PA-41X.

2. Enter the amended amounts fromSchedule PA-41X per the PA-41Xinstructions.

3. Calculate Line 8, Deductions fromPA Schedule DD, distributed to eachbeneficiary and complete amendedPA-41 Schedules RK-1 and NRK-1.

4. Calculate Line 9, Net PA-TaxableIncome.

5. Calculate Line 10, Total PA TaxLiability.

6. Calculate Line 11, Tax Withheld forNonresident Beneficiaries.

7. Calculate Line 12, Total PA TaxLiability.

8. Calculate Line 18, Total Paymentsand Credits.

9. Calculate Line 20, Tax Due.

10. Complete Line 21 to report anyadjusted penalty and interest to beincluded on the return.

11. Do not complete Lines 22 and 23.The department’s tax system isprogrammed to properly calculateyour amended total payment oroverpayment.

12. Complete Lines 24 and 25 to notifythe department how to disperseyour overpayment.

If you are amending a 2007 or earlier taxyear return, you must obtain a PA-41,Fiduciary Income Tax Return booklet, forthe year you want to amend and followthe amended return instructions includedtherein.

The department will take the originalrefund or payment into account whenreviewing the amended PA-41, FiduciaryIncome Tax Return.

Be sure to sign the amended return andmail the amended return with all expla-nations and attachments. See Where ToFile.

NOTE: Do not send a copy of theoriginal PA-41, Fiduciary Income

Tax Return, with the amended PA-41,Fiduciary Income Tax Return.

All amounts reported on the PA-41,Fiduciary Income Tax Return, andaccompanying schedules are subject toverification and audit by the department.The fiduciary must retain books andrecords for at least four years after filingto verify any information reported on thePA-41, Fiduciary Income Tax Return.

Information that substantiates the calcu-lation of the estate or trust’s basis in anyinvestment (partnership, S corporation,stocks, bonds, real estate, etc.) must beretained indefinitely or for at least fouryears after the investment is sold. Infor-mation that substantiates the calculationof basis in an investment shall include,but not be limited to, broker statements,Pennsylvania and other states’ incometax returns, PA Schedules RK-1, closingstatements, etc.

On the PA-41 form and schedules, showmoney amounts in whole dollars. Elimi-nate any amount less than $0.50 and

increase any amount that is $0.50 ormore to the next highest dollar.

If the estate or trust is located outsidethe U.S., it is important to write the foreignaddress on the PA-41, Fiduciary IncomeTax Return, according to U.S. PostalService standards.

Failure to use these standards may delayany refunds requested or correspondencenecessary to complete the processing ofthe return.

To comply with foreign address standards,use the following rules when completingthe address portion of the PA-41, Fidu-ciary Income Tax Return.

• Eliminate apostrophes, commas,periods and hyphens.

• Write the name of the estate or trustin the space provided.

• Write the name and title of thefiduciary in the space provided.

• Write the address in the space pro-vided, including street and buildingname and number, apartment orsuite numbers, city name and city orprovincial codes.

• Write only the name of the countryin the space provided for the city orpost office.

• Do not include any entries in thestate or ZIP code spaces on thePA-41, Fiduciary Income Tax Return.

Providing the address in this format willbetter ensure that the department is ableto send a refund on a timely basis orcontact the estate or trust if additionalinformation is required.

Below are examples of properly com-pleted foreign addresses.

Foreign Address Example SAUNDERS HELEN ESTATE OF

JANET SAUNDERS ADMIN10 BOW ST OTTAWA ON K1A 0B1CANADA

Foreign Address Example DIETRIC-FISCHER INGE TRUST

PATRIK FISCHER TTEEWEIMARER STR 7 5300 BONN 1GERMANY

If the estate or trust’s address does notfit in the available spaces on the PA-41,Fiduciary Income Tax Return, usingthis format, please include a separate

RECORDKEEPING

COMPLETING THE PA-41

ROUNDING NUMBERS

FOREIGN ADDRESS INSTRUCTIONS


statement with the return showing thecomplete address.

Federal Employer Identification NumberEnter the nine-digit federal employeridentification number (FEIN) of theestate or trust.

An estate with an FEIN should leave thefield blank for decedent’s Social Securitynumber.

If an estate has not yet received its FEINfrom the IRS, the preparer shouldprovide the decedent’s Social Securitynumber in this field.

If a trust has not yet received its FEINfrom the IRS, the preparer should write“APPLIEDFR” in the space provided forthe FEIN.

The estate or trust should then send thedepartment a copy of the notice identi-fying the assigned FEIN as soon as it isreceived from the IRS.

The copy of the notice should be sent tothe same address to which any previousreturns or extensions were filed.

Decedent’s SocialSecurity NumberEnter the nine-digit Social Securitynumber of the decedent.

Fiduciary’s Daytime Phone Number Enter the fiduciary’s daytime phonenumber.

Name of Estate Or TrustPrint the name of the estate or trust inthe following format:

EstateEnter taxpayer’s last name, first nameand middle initial.

Example. SMITH JOHN T ESTATE OF

TrustEnter taxpayer’s last name, first nameand middle initial.

Example. JONES MARY S TRUST

Name and Title of FiduciaryPrint the name and title of the fiduciary.

Address of FiduciaryEnter the fiduciary’s complete streetaddress. If the address has an apartmentnumber, suite, or RR number, enter afterthe street address.

Eliminate all punctuation such as apos-trophes, commas, periods and hyphens.

City or Post Office, State and ZIP CodeEnter the appropriate information ineach box. Eliminate all punctuation suchas apostrophes, commas, periods andhyphens.

For a foreign address, the bottom line ofthe address should show only the countryname, written in full (no abbreviations)and in capital letters. See ForeignAddress Instructions.

Extension RequestedFill in the oval if the estate or trustrequested an extension of time to file thePA-41, Fiduciary Income Tax Return. Ifthe entity did not file REV-276, Applicationfor Extension of Time to File, submit acopy of federal Form 7004, Applicationfor Automatic Extension of Time to FileCertain Business Income Tax, Information,and Other Returns, with the PA-41,Fiduciary Income Tax Return. SeeExtension of Time To File

Amended PA-41Fill in the oval if amending the 2013PA-41, Fiduciary Income Tax Return.The estate or trust must also provideamended PA-41 Schedules RK-1 andNRK-1 to its beneficiaries. See How ToAmend the PA-41, Fiduciary Income TaxReturn.

Fiscal-Year FilerA fiscal year is a 12-month accountingperiod, other than a calendar year, endingon the last day of a particular month, forexample July 1 to June 20 of the followingyear. Numerous taxpayers are free toselect a fiscal year in which to reporttaxable income.

The estate or trust must use its federaltaxable year for Pennsylvania purposes.

If the estate or trust does not file on acalendar-year basis, fill in the oval. Enterthe month, day and year when the fiscalyear begins and ends.

NOTE: A fiscal-year basis includesanything other than tax year

beginning Jan. 1 and ending Dec. 31.

TIP: Do not fill in the fiscal-yearoval for a calendar-year filer whose

initial year does not begin Jan. 1 or for acalendar-year filer whose final returndoes not end Dec. 31.

Residency StatusFill in only one oval.

Final ReturnFill in the oval and enter the date theestate was closed or the trust terminatedduring its taxable year.

Interest Income and Gamblingand Lottery WinningsPA-41 Schedule A is now only requiredto be completed and submitted if thereare amounts to be reported on Lines 2through 13 of PA-41 Schedule A. Seethe instructions for PA-41 Schedule A foradditional information.

If you are required to complete PA-41Schedule A, please include the amountfrom Line 14 of PA-41 Schedule A onLine 1 of the PA-41, Fiduciary IncomeTax Return.

If you are not required to complete PA-41Schedule A, record the total amount ofinterest income earned for the year onLine 1 of the PA-41, Fiduciary IncomeTax Return.

Pennsylvania-taxable interest incomeincludes interest from:

• Savings and loan associations;

• Credit unions, even if reported asdividends on your statement;

• Bank deposits;

• Bonds (except as noted below);

• Certificates of deposit;

• Interest-bearing personal checkingaccounts;

• Pennsylvania, federal, local andforeign tax refunds;

• Other deposits, investments, andobligations;

• GNMA and FNMA certificates andother obligations that are guaran-teed by the U.S. government, butnot direct obligations of the U.S.government;

• Obligations of other states orcountries;

• Mutual savings banks and cooper-ative banks, even if reported asdividends;

• Income from any amount paid undercontract of life insurance, endowmentor annuity contract that is includablein gross income for federal incometax purposes.

LINE INSTRUCTIONS

LINE 1

PAGE 1

FILL IN THE APPLICABLE OVALS


Pennsylvania-taxable income does notinclude interest from:

• Direct obligations of the U.S. Govern-ment (U.S. Treasury Bonds, Notes,Bills, Certificates, and SavingsBonds);

• Direct obligations of the Common-wealth of Pennsylvania;

• Direct obligations of politicalsubdivisions of Pennsylvania.

For a list of exempt obligations, requestREV-1643, Tax-Exempt Obligations forPA Personal Income Tax Purposes.

Distributions from Money MarketFunds, Mutual Funds and OtherInvestment CompaniesEstates or trusts must report distributionsfrom the earnings and profits of moneymarket or mutual funds, investment trustsand investment companies as dividendincome on Line 2, not as interest income.

Forfeited Interest PenaltyEstates or trusts may use forfeited interestpenalty, incurred for premature redemp-tion or withdrawal of a time savingsaccount or certificate of deposit, to offsetonly the interest income from that accountor certificate.

It may not offset other interest income. Ifthe total penalty exceeds the interest onan account or certificate, the excess is aloss on PA-41 Schedule D.

Interest Received by Nonresident Estates or TrustsGenerally, interest received by nonresi-dent estates or trusts is not taxable evenwhen paid by a Pennsylvania bank.

Interest is taxable to a nonresident only ifderived from the ownership or dispositionof real or personal tangible property inPennsylvania, or received in connectionwith doing business in Pennsylvania.

Although the interest income may not betaxable, the information may be necessaryin the completion of PA-41 Schedule DD.See the PA-41 Schedule DD instructionson the department’s website.

Gambling and Lottery WinningsGambling and lottery winnings for residentestates and nonresident estates must bereported on Line 13 of PA-41 ScheduleA and on Line 1 of the PA-41, FiduciaryIncome Tax Return.

Dividend and Capital Gains Distributions IncomePA-41 Schedule B is now only requiredto be completed and submitted if there

are amounts to be reported on Lines 2through 8 of PA-41 Schedule B. See theinstructions for PA-41 Schedule B foradditional information.

If you are required to complete PA-41Schedule B, please include the amountfrom Line 11 of PA-41 Schedule B hereon Line 2 of the PA-41, Fiduciary IncomeTax Return.

If you are not required to complete PA-41Schedule B, record the total amount ofdividend income earned for the year onLine 2. See the PA-41 Schedule Binstructions on the department’s website.

PA-taxable dividends and capital gainsdistributions income includes dividendincome received from stocks, non PA Scorporations, mutual funds, other busi-ness associations, etc. as well as capitalgains distributions from mutual funds.

A resident estate or trust that is a share-holder of a corporation, other than aPA S corporation, must report as taxabledividend income distributions by a busi-ness corporation or business associationout of its earnings and profits, withoutregard to the manner in which the busi-ness derived the income.

For Pennsylvania purposes, a businessassociation is an unincorporated businessenterprise, organized in a manner similarto a business corporation. Businesscorporations or business associationsinclude, but are not limited to, businesstrusts, federally qualified real estateinvestment companies, mutual funds,and other federally regulated investmentcompanies.

IMPORTANT: If the estate or trustis a shareholder in a subchapter

S corporation in another state, and thatcorporation elected not to be treated asa PA S corporation, include the cash orproperty the estate or trust actuallyreceived out of the corporation’s earningsand profits as dividend income on Line 2.

The estate or trust must submit federalForm 1120S Schedule K-1. If the estateor trust received distributions in excessof the corporation’s earnings and profits,report these distributions on PA-41Schedule D. Do not report the amount ofthe estate or trust’s distributable income,and do not submit the federal Form 1120SSchedule K-1.

A shareholder may not claim a credit forincome tax paid to another state by anS corporation that elected not to betreated as a PA S corporation.

CAUTION. Report capital gainsdistributions from mutual funds

and regulated investment companies asdividend income for Pennsylvania pur-poses, even though reported on federalSchedule D for federal purposes.

Mutual Funds, Money MarketFunds and Investment TrustsDistributions, including dividends in theform of capital gains, received frommutual funds and money market funds,real estate investment trusts, and otherinvestment trusts, except for ordinarydividends from exempt Pennsylvaniaobligations and exempt federal obliga-tions, are fully taxable as dividends unlessthey are a return of capital.

Dividend Income Does Not Include • Dividends distributed by a corpora-

tion to its stockholders in the form ofstock, when the distribution is not tax-able as income for federal purposes.

• Distributions designated as a returnof capital by a utility company or othercorporation. Once such distributionsreduce the basis of the stock to zero,further distributions are taxable asgain from the sale or disposition ofproperty on PA-41 Schedule D.

• Dividends from deposits or with-drawals from accounts paid by sav-ings and loan associations, mutualsavings banks, cooperative banks,and credit unions. Report thesepayments as Pennsylvania-taxableinterest income on Line 1.

• Ordinary dividends paid by a mutualfund or a registered investmentcompany that the fund/companystatement designates as beingexempt-interest dividends. Use thepercentage of the total dividend income that is from exempt Pennsyl-vania and exempt federal obligations.

• Income from an estate or trust, evenif reported on a federal Form 1041Schedule K-1. Report such incomeon PA-41 Schedule J.

• Dividends from Pennsylvania tax-exempt obligations. You can requestREV-1643, Tax-Exempt Obligationsfor Pennsylvania personal Incometax purposes, for a list of exemptobligations.

• Dividends distributed under a chari-table gift annuity are not taxable.However, after you recovered theamount you donated, you mustreport further distributions as taxablegains on PA-41 Schedule D.

LINE 2


Dividends Received by Nonresident Estates or TrustsGenerally, dividends received by non-resident estates or trusts are not taxableeven when paid by a Pennsylvaniacorporation.

However, the information may be neces-sary to complete the PA-41 Schedule DDand may be necessary to determine theamount of trust income to be reported bya resident beneficiary. See the PA-41Schedule DD instructions on the depart-ment’s website.

Net Income or Loss from the Operation of a Business, Profession or FarmComplete and file a separate PA-40Schedule C or PA-40 Schedule F foreach business or farm that the estate ortrust operates.

If the estate or trust is an owner in apartnership, PA S corporation or entityformed as a limited liability company thatis classified as a partnership or PA Scorporation for federal income taxpurposes, submit a copy of the federalForm 1065 or federal Form 1120SSchedule K-1 if a PA-20S/PA-65 Sched-ule RK-1 is not supplied.

If the estate or trust is an owner in a part-nership or entity formed as a limitedliability company that is classified as apartnership for federal income taxpurposes and receives only a federalForm 1065 Schedule K-1, you mustadjust and classify the income andlosses according to Pennsylvania rules.

See the Pennsylvania Personal IncomeTax Guide (PA PIT), Chapter 16, PassThrough Entities, for additional informa-tion on the adjustments required and theproper classification of income.

If the estate or trust is an owner in a PAS corporation, the PA S corporation mustprovide the PA-20S/PA-65 ScheduleRK-1 or NRK-1. The federal Form 1120SSchedule K-1 is not an acceptablesubstitute.

What is a Business or ProfessionA business or profession has certainfeatures and must meet each of thefollowing conditions:

• Markets its products, goods, andservices to its customers in amarketplace;

• Regularly and continuously conductsits commercial activities; and

• Does not limit or restrict its commer-cial activities to certain related orunrelated customers.

Reporting Net Income (Loss) onthe PA-41, Fiduciary Income Tax ReturnIf the estate or trust realizes ordinaryincome (loss) from the operation of abusiness, profession or farm from morethan one partnership, PA S corporation,or entity formed as a limited liability com-pany that is classified as a partnershipor PA S corporation for federal incometax purposes, provide a statementshowing the FEIN, name, and amount ofdistributable/distributed income by entity.Also include the PA-20S/PA-65 Sched-ules RK-1 and/or federal Form 1065Schedules K-1 or 1120S Schedules K-1when filing your PA-41, Fiduciary IncomeTax Return.

Record the total amount of income (loss)from partnerships, PA S corporations, andentities formed as limited liability compa-nies that are classified as partnershipsor PA S corporations for federal incometax purposes along with any income (loss)from Schedules C or F on Line 3. If theestate or trust realizes a net loss, enterthat amount on Line 3 and fill in the ovalnext to the line. Do not use brackets ora minus sign.

Income Not Derived in the Ordinary Course of BusinessUnless the estate or trust realizes thefollowing kinds of income in the ordinarycourse of operating its business, profes-sion or farm, the estate or trust reportsthese kinds of income in other Penn-sylvania income classes on its PA-41,Fiduciary Income Tax Return.

The estate or trust may not deductexpenses attributable to these classesof income on its PA Schedules C or F.

Follow these rules for reporting otherincome.

• Report the gain (loss) from the saleof an asset used in business, otherthan inventory or stock-in-trade, onPA-41 Schedule D.

• Report interest income on PA-41Schedule A.

• Report dividend income on PA-41Schedule B.

• Report rent and royalty income onPA-40 Schedule E.

Allowable Business ExpensesAllowable expenses are those ordinary,necessary, and reasonable expensescurrently paid or incurred during the tax-able year that are directly related to andnecessary for operating a business,profession or farm.

Social security and unemploymentcompensation taxes paid for employeesare allowable expenses.

• Do not deduct any federal income tax,estate, inheritance, legacy, succes-sion and gift taxes, or assessmentsfor any improvements or betterments.

• Do not deduct taxes on dwellings orhousehold property and other taxesnot related to the business.

Depreciation/Bonus DepreciationPennsylvania personal income tax lawdoes not follow the federal allowancesfor additional depreciation expenses.Taxpayers may not use either of thebonus depreciation elections enacted forfederal purposes in 2002 and 2003.An estate or trust must increase itsPennsylvania income by the differencebetween the bonus depreciation and thedepreciation based on the generallyaccepted depreciation method it electedfor Pennsylvania personal income taxpurposes.

Other Depreciation Expense DifferencesAn estate or trust must adjust its federalexpense for the difference between itsfederal depreciation and its Pennsylvaniapersonal income tax depreciation, basedon its generally accepted method.

Pennsylvania allows ACRS, MACRS, andIRC Section 168(k) only to the extentallowable under the version of the InternalRevenue Code in effect at the time theproperty was placed in service or the IRCin effect on Jan. 1, 1997, whichever isearlier, but not any other acceleratedmethod.

CAUTION. Estates and trustscannot expense capital property

using any provisions of IRC Section 179.

TIP: If the basis of the propertyused to calculate depreciation for

federal income tax purposes is differentthan that used to calculate depreciationfor state income tax purposes, thedepartment requires straight-line depre-ciation to be used to calculate the depre-ciation on these assets.

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Other Federal LegislationFederal legislation signed into law late in2010 – including the Small BusinessJobs Act and the Tax Relief, Unemploy-ment Insurance Reauthorization, andJob Creation Act – contain no provisionsapplicable for or that may be used incalculating Pennsylvania personal incometax liabilities. Any provisions provided inthe aforementioned acts to defer incomeor accelerate deductions must bereversed for Pennsylvania personalincome tax purposes.

Net Gain or Loss from the Sale, Exchange or Disposition of PropertyIf the estate or trust has net gains orlosses from the sale, exchanges, ordisposition of property, enter the amountfrom Line 10 of the PA-41 Schedule Dhere on Line 4. See the PA-41 ScheduleD instructions on the department’swebsite.

You must report each sale, exchange, ordisposition of any kind of property,including real estate, tangible personalproperty and intangible property such asstock or ownership interests in businessenterprises, bonds, annuities, and contractof insurance with refundable accumulatedreserves payable upon lapse or surrender.

However, if a sale, including an install-ment sale, is a routine transaction in theordinary course of operating a business,profession or farm, include the gain (loss),and any interest realized in determiningnet business income (loss).

See the Pennsylvania Personal IncomeTax (PA PIT), Chapter 12, Table 12-1, formore information on determining whetherthe sale should be included as a routinetransaction in the ordinary course ofbusiness or on PA-41 Schedule D.

Report gain on the disposition of prop-erty in the taxable year in which theamount realized from the conversion ofthe property into cash or other propertyexceeds the adjusted basis of suchproperty.

An estate or trust recognizes a loss only:

• With respect to transactions enteredinto for profit; and/or

• In the taxable year in which it closesand completes the transaction bysome identifiable event that fixesthe amount of such loss, so thatthere is no possibility of any eventualrecovery.

Installment SalesWhen real or tangible personal propertyis sold at a gain and any portion of thepayments is expected to be received ina tax year after the year of sale, it is aninstallment sale. The estate or trust hasthe option to either report the entire pro-ceeds in the year of the sale or reportthe gain on the installment sale method.An installment method election, oncemade, cannot be revoked nor may theprofit percentage be altered.

The election to report using the install-ment method is made by filing a PASchedule D-1 (REV-1689) for the yearof sale. Schedule D-1 is required insubsequent years in which any paymentis received. Obtain and complete PASchedule D-1 and enter on Line 3 ofPA-41 Schedule D the total gain realizedfrom PA Schedule D-1.

If the decedent had entered into aninstallment sale prior to death, the estateis required to continue using the install-ment method of reporting, using the sameprofit percentage established at the timeof sale.

The estate or trust may not use theinstallment method for:

• Reporting gains from the sale ofintangible personal property, such asstocks, bonds, partnership interests,goodwill, etc.; or

• Transactions where the object is thelending of money or the rendering ofservices.

Follow the instructions for PA ScheduleD-1. Submit PA Schedule D-1 with thePA-41 Schedule D.

IMPORTANT: Interest incidentalto an installment sale is reported

directly from the sale contract or agree-ment, on PA Schedule D-1.

Repossession of PropertyIf an estate or trust repossesses prop-erty resulting from an installment salebecause the buyer defaulted, the estateor trust must adjust the basis of therecovered property by the amount of anypreviously reported gain. The estate ortrust may not amend its tax return for thetaxable year of the original installmentsale.

TIP: Report capital gains distribu-tions from mutual funds and regu-

lated investment companies as dividendincome for Pennsylvania purposes, eventhough reported on a federal Schedule Dfor federal purposes.

Federal and Pennsylvania ObligationsSince 1993, Pennsylvania law treats netgains and losses from the sale, exchange,or disposition of the following obligationsdifferently depending on the original issuedate of these obligations:

1. Direct obligations of the U.S., such asSeries E, F, G, H, I, and EE bonds,federal treasury bills, and treasurynotes;

2. Direct obligations of certain agen-cies, instrumentalities, or territoriesof the U.S.; and

3. Direct obligations of the Common-wealth of Pennsylvania and itspolitical subdivisions.

If the original issue date was beforeFeb. 1, 1994:

• The net gain is not subject to Penn-sylvania tax;

• A loss may not offset other gains;and

• Expenses incurred may not reduceother taxable gains.

If the original issue date was on or afterFeb. 1, 1994:

• The net gains are Pennsylvania-taxable income; and

• Losses may offset other Pennsylva-nia-taxable gains, but not income inother Pennsylvania income classes.

IMPORTANT: If the sale, exchangeor disposition of property transac-

tion is from a federal or Pennsylvaniaobligation, please include the originalissue date or DTD date of the obligationin the description of the transaction.

CAUTION. The gain from the saleof a mutual fund or a fixed invest-

ment portfolio trust is not exempt forPennsylvania purposes.

Obligations of Other StatesNet gain from the disposition of obligationsof other states or countries is alwaysPennsylvania-taxable income.

Taxable Distributions from a C CorporationAn estate or trust that is a shareholderin a C corporation must report as taxablegain the excess of the fair market valueof a distribution (other than a dividend)in excess of current or accumulatedearnings and profits over the adjustedbasis of its stock when the adjustedbasis of the stock is zero.

When a distribution, that is not a divi-dend, is received that is in excess of thecurrent or accumulated earnings and

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profits, it decreases the basis of thestock or shares, but not below zero, byany distribution that is not taxable as adividend on Line 2 of PA-41, FiduciaryIncome Tax Return. Once a distributionreduces the basis of the stock to zero,the excess distributions are taxable asgains from the disposition of propertyand reported on Schedule D, Line 4.

Example. B corporation distributes fromits capital account $100,000 to the estateof John Doe, the only stockholder. Theestate’s adjusted basis in the stock is$75,000. The distribution is not fromthe regular corporation’s earnings andprofits, so it is not a taxable dividend.

The estate must reduce its basis from$75,000 to zero, then report $100,000on the "Enter total distribution" line, and$75,000 on the "Minus adjusted basis" line.The estate reports the remaining $25,000as a gain on its PA-41 Schedule D.

Property Acquired Before June 1, 1971Obtain and complete PA Schedule D-71(REV-1742). Report on Line 5 of PA-41Schedule D the total net gain (loss) fromPA Schedule D-71.

Limited Liability Company, Partnership and PA S Corporation IncomeIf the estate or trust is a member, partneror shareholder (owner) in a PA S corpo-ration, it should receive a PA-20S/PA-65Schedule RK-1 or NRK-1 showing itsshare of any net gain (loss) realized by thesale, exchange or disposition of property.

Report the amount of any net gain (loss)realized by the sale, exchange or dispo-sition of property from PA-20S/PA-65Schedule RK-1, Line 4 and PA-20S/PA-65Schedule NRK-1, Line 2 on PA-41Schedule D, Line 6 or Line 7.

Submit all schedules to support theamount reported on PA-41 Schedule D.

Submit a copy of the federal Form 1065Schedule K-1 if a PA-20S/PA-65 Sched-ule RK-1 or NRK-1 is not supplied by thepartnership or limited liability company.

If the estate or trust receives only a federalForm 1065 Schedule K-1, the estate ortrust must adjust and classify the incomeand losses according to Pennsylvaniarules.

See the Pennsylvania Personal IncomeTax (PA PIT) Guide, Chapter 16, PassThrough Entities, for additional informa-tion on the adjustments required and theproper classification of income.

If the estate or trust is a shareholder(owners) in a PA S corporation, the PA Scorporation must provide the PA-20S/PA-65 Schedule RK-1 or NRK-1. Thefederal Form 1120S Schedule K-1 is notan acceptable substitute.

If the estate or trust realizes income(loss) from more than one partnership,PA S corporation or entity formed as alimited liability company that is classifiedas a partnership or PA S corporation forfederal income tax purposes, provide astatement showing the FEIN, nameand amount of distributable/distributedincome by entity.

Disposition of Principal ResidenceA sale or other disposition of a decedent'sprincipal residence will not qualify for theprincipal residence exclusion unless thedisposition is pursuant to an executorcontract made prior to death by an indi-vidual that met the ownership and userequirements. Include the taxable saleof a decedent's residence on Line 1 ofPA-41 Schedule D.

Net Income or Loss from Rents,Royalties, Patents or Copyrights If the estate or trust has net income (loss)from rents, royalties, patents and/orcopyrights, it must complete a separatePA-40 Schedule E to report the income(loss) and include it with the PA-41,Fiduciary Income Tax Return.

Report the amount of income (loss) fromPA-40 Schedule E, Line 23 on the PA-41,Fiduciary Income Tax Return, Line 5. Seethe PA-40 Schedule E and instructionson the department’s website.

Rental income includes the amounts theestate or trust received for the use of,or the right to use, its real or personalproperty.

Royalty income includes the amounts theestate or trust received for the extractionof coal, oil, gas or other minerals in place,and the amounts received for the use ofits patents, copyrights, secret processes,formulas, goodwill, trademarks, tradebrands, franchises and similar property.

Limited Liability Company, Partnership and PA S Corporation IncomeIf the estate or trust is a member, partneror shareholder (owner) in a partnership,PA S corporation or an entity formedas a limited liability company that is clas-

sified as a partnership or PA S corpora-tion for federal income tax purposes, itshould receive a PA-20S/PA-65 ScheduleRK-1 and NRK-1 showing its share ofany net income (loss) from rents, royalties,patents and/or copyrights.

Report the amount of any net income(loss) from rents, royalties, patents and/orcopyrights from PA-20S/PA-65 ScheduleRK-1, Line 5 and PA-20S/PA-65 Sched-ule NRK-1, Line 3 on PA-40 Schedule E,Line 22.

Submit all schedules to support theamount reported on PA-40 Schedule E.

Submit a copy of the federal Form 1065Schedule K-1 if a PA-20S/PA-65 ScheduleRK-1 is not supplied by the partnershipor limited liability company.

If the estate or trust receives only federalForm 1065 Schedule K-1, the estate ortrust must adjust and classify the incomeand losses according to Pennsylvaniapersonal income tax.

See the Pennsylvania Personal IncomeTax (PA PIT) Guide, Chapter 16, PassThrough Entities, for additional informa-tion on the adjustments required and theproper classification of income.

If the estate or trust is a shareholder ina PA S corporation or an entity formed asa limited liability company that is classifiedas a PA S corporation for federal incometax purposes, the PA S corporation mustprovide the owner the PA-20S/PA-65Schedule RK-1 or NRK-1. The federalForm 1120S Schedule K-1 is not anacceptable substitute.

If the estate or trust realizes income (loss)from more than one partnership, PA Scorporation or limited liability company,provide a statement showing the FEIN,name and amount of distributable/distributed income by entity.

The department no longer permits anestate or trust to use federal Schedule Eto report rental/royalty income or loss.The estate or trust must use PA-40Schedule E to report the rental/royaltyactivity. The income or loss reported onPA-40 Schedule E must be calculatedusing PA personal income tax rules;federal calculations are not acceptable.There can be significant differencesbetween rental/royalty income or losscalculated according to PA rules vs. fed-eral rules, such as:

• PA taxpayers report passive rental/royalty loss in full; the federal carry-

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over of losses to future years is notpermitted.

• PA taxpayers only report the currentyear’s income (loss); any rental/royalty loss carryovers from prioryears deducted for federal purposesare not permitted.

• PA permits an additional deductionfor any meals and entertainmentexpenses disallowed for federalpurposes.

• PA provides an option to deductsales and use tax on acquired prop-erty; for federal purposes, this mustbe included in the basis of the prop-erty. In addition, if sales and use taxare deducted as an expense, depre-ciation on the asset will be differentfor PA purposes due to the differingdepreciable bases.

IMPORTANT: If currently expens-ing sales and use tax, the basis of

that property will differ from the federalbasis. As a result, straight-line depreci-ation is required to be used for Pennsyl-vania personal income tax purposesand the depreciation expense must beadjusted accordingly. An estate or trustcannot expense sales and use tax andstill take the same depreciation forPennsylvania personal income tax pur-poses as it does for federal purposes.

Rental and Royalty Receipts andAllowable ExpensesGross rents and royalties include all itemsof gross receipts from rents, royalties,patents, copyrights, secret processes,formulas, goodwill, trademarks, tradebrands, franchises, and similar propertyexcept:

• Receipts from the sale, exchange orother disposition of rental, royaltyand similar property; and

• Receipts from operating an oil, gasor mineral interest as a business,profession or farm or otherwisederived in the ordinary course of, andfrom the operation of, a business.

Deduct those expenses that were paidor incurred during the taxable year thatare ordinary and necessary for:

• The production of, or collection of,rents and royalties; or

• The management, conservation ormaintenance of rents, royalties,patents, copyrights and similarproperty. See the PA-40 Schedule Einstructions on the department’swebsite for the allowable expenses.

Rents or Net Profit from the Operation of a BusinessRental activity is a business activity theestate or trust reports on a PA-40Schedule C, when:

• The estate or trust offers the use ofits property on a commercial basisto others in a marketplace;

• It provides significant services (seebelow) to the lessee primarily for thelessee’s convenience, and not cus-tomarily provided in connection withrenting property; and

• At least one of the following threeconditions applies:

◦ The average period of customeruse is 30 days or less;

◦ The property is customarily madeavailable for use only duringdefined business hours;

• The estate or trust incurs significantoperating expenses in making theproperty available for lease; or

• The leasing activity is incidental to areal estate sales business; and

◦ It offers the use of its propertyintending to realize a profit; or

◦ The leasing of its property is aregular and continuous activity.

Significant ServicesProviding housekeeping service, roomservice, valet parking, decorating assis-tance, delivery services, transportationservices and concierge services aresignificant services.

However, providing heat, lighting, electricservice, elevators, cleaning public accessand exit areas, collecting trash andmaintaining the property in a usablerental condition are not usually significantservices.

Rents or Net Gain from the Sale,Exchange, or Disposition ofProperty Lease with anOption to BuyA lease with an option to buy may bea purchase contract under acceptedaccounting principles and practices.

If it is, the payments you received underthe contract are payments of the purchaseprice and are not includable as rentalincome. Report such income on PA-41Schedule D.

Selling Mineral Interests,Patents, or CopyrightsIf giving up all rights to mineral interests,patents or copyrights, the amounts theestate or trust received are consideredpayments for the sale or exchange of

property. Report such income on PA-41Schedule D.

Estate or Trust IncomeIf the estate or trust has estate or trustincome reported on PA-41 Schedule J,report that income here.

Income currently paid, distributable orcredited income from another estate ortrust is Pennsylvania-taxable income onthe PA-41, Fiduciary Income Tax Return.The estate or trust will receive a PA-41Schedule RK-1 or NRK-1 from the otherestate or trust.

Cash and property received from anotherestate or trust by gift, bequest, devise orinheritance is not taxable.

Pennsylvania-taxable income from otherestates or trusts is reported on PA-41Schedule J.

If the other estate or trust provides a fed-eral Form 1041 Schedule K-1, report onlythe total distributed and distributableincome from all categories of income,not taking into account any losses, onPA-41 Schedule J. See the PA-41 Sched-ule J instructions on the department’swebsite.

If a resident estate or trust, enter theamount reported from Line 6 of the PA-41Schedule RK-1 provided by the otherestate or trust as your resident taxableincome on the PA-41, Fiduciary IncomeTax Return, Line 6.

If a nonresident estate or trust, enter theamount reported from Line 4 of the PA-41Schedule NRK-1 provided by the otherestate or trust as your nonresident taxableincome on the PA-41, Fiduciary IncomeTax Return, Line 6.

Total IncomeAdd all positive amounts on Lines 1through 6. You cannot offset income(loss) on these lines to calculate Line 7.

Deductions for PA Schedule DDComplete the PA-41 Schedule DD,Distribution Deduction Schedule, todetermine the allowable deductions fordistributions made to beneficiaries of theestate or trust. See the PA-41 ScheduleDD instructions on the department’swebsite.

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Net PA-Taxable IncomeSubtract Line 8 from Line 7.

PA Tax LiabilityMultiply the amount on Line 9 by 3.07percent (0.0307).

Tax Withheld for NonresidentBeneficiariesIf the estate or trust has distributed ordistributable Pennsylvania-source incomeand nonresident beneficiaries, report theamount of the nonresident withholdingtax from PA-41 Schedule N here. Seethe instructions for PA-41 Schedule N onthe department’s website.

If the estate or trust does not distributeits income or does not have Pennsylva-nia-source income, there is no nonresi-dent withholding tax requirement.

The amount reported on Line 11 mustequal the total amount reported on Line 6for all PA-41 Schedule NRK-1s. See theinstructions for PA-41 Schedule NRK-1on the department’s website.

Total PA Tax LiabilityAdd Lines 10 and 11. This amount is thePennsylvania tax before adjustment forpayments and credits.

2014 Estimated Payments and CreditsEnter the total of:

• Any credit carried over from the 2013PA-41, Fiduciary Income Tax Return;

• All 2014 installment payments ofestimated tax; and

• Any payment made with a 2014request for extension of time to file.

Nonresident Tax Withheld fromPA Schedules NRK-1Enter the Pennsylvania tax withheld by apartnership, PA S corporation, or limitedliability company from Line 6 of a partner-ship, PA S corporation or limited liabilitycompany PA-20S/PA-65 Schedule NRK-1.

The estate or trust must submit thePA-20S/PA-65 Schedules NRK-1.

Total Credit for Taxes Paid byPennsylvania Resident Estatesor Trusts to Other StatesPennsylvania resident estates or trustshaving income subject to both Pennsyl-vania tax and fiduciary income tax ofanother state may claim a credit for allor a portion of the tax paid to the otherstate. A state is defined as a state of theUnited States, the District of Columbia,the Commonwealth of Puerto Rico andany territory of possession of the UnitedStates.

Submit a photocopy of the tax return, orother evidence, filed in the other statewith the PA-40 Schedule G-S or G-L.

If a shareholder or partner, the estate ortrust must also submit the PA SchedulesRK-1.

Your partnership or PA S corporation sub-mits the PA-40 Schedule G-L and otherstate’s return with its PA-20S/PA-65Information Return.

Pennsylvania Resident Shareholders in a Subchapter SCorporation that is not also a PA S CorporationPennsylvania law does not permit aresident credit if you are a shareholderin a subchapter S corporation if thatcorporation elected not to be taxed as aPA S corporation.

See the PA-40 Schedules G-S and G-Linstructions on the department’s website.

Pennsylvania law does not provide rulesthat allow an estate or trust to passthrough the fiduciary income tax itpays to another state on behalf of itsbeneficiaries.

Therefore, the estate or trust may adjustthe income it reports on the PA-41Schedule RK-1 that it provides to itsbeneficiaries by the amount of fiduciaryincome tax that it paid to anotherstate on the income it distributes to itsbeneficiaries.

The estate or trust must submit anexplanation for its adjustment and a copyof the other state’s tax return or otherevidence of the tax due to the otherjurisdiction.

If the estate or trust distributes all of itsdistributable income, the estate or trustshows the gross amount of incomereceived for the appropriate class of

income taxed in the other state on aseparate statement. The separate state-ment should also include a line with anegative amount and the description“other state taxes paid” and the amountof taxes paid to the state. The estate ortrust then reports the net amount ofincome or loss for that class of income onthe PA-41, Fiduciary Income Tax Return.Example A provides how this affects theincome of a trust and the distribution tothe beneficiary.

Example A. A trust has $75,000 of incomethat consists of $25,000 of interestincome and $50,000 of business income.The trust has $2,000 of taxes it pays toanother state on business income of$20,000. The trust is required, by its trustdocument, to distribute all of its incometo one Pennsylvania beneficiary. In thisexample the resident credit cannot bepassed through to the beneficiaries. Thetax paid to the other state is shown as areduction to the business income earnedby the trust on a separate line of thestatement reporting the income for Line 3of the PA-41, Fiduciary Income TaxReturn. The PA-41 Fiduciary Income TaxReturn would then show $48,000 oftaxable business income. The PA-41Schedule RK-1 would then report$73,000 of income on Line 6.

If an estate or trust does not distribute allof its distributable income and it also hasother state taxes paid, the estate or trustcannot utilize the entire amount as areduction to income or as a residentcredit for taxes paid to the other states.In such cases, the tax must be proratedbetween reducing the income and resi-dent credit. Example B provides how toprorate the amounts.

Example B. A trust has $100,000 ofincome that consists of $25,000 ofinterest, $50,000 of business income and$25,000 of gains. The trust has $2,000of taxes it pays to another state on busi-ness income of $20,000 and distributes$60,000 of its income.

The trust agreement or document in thisexample does not permit gains to be dis-tributed. Therefore, the income distrib-uted is made up of business and interestincome and not all of that income wasdistributed. Since not all the businessand interest income were distributed, thetrust has to prorate the other state’staxes between adjusting the businessincome and receiving a resident credit.

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If all income is not distributed, here’s howto prorate the taxes and credit:

• Since $60,000 of the total distrib-utable income of $75,000, or 80percent was distributed, 80 percentof the taxes paid should be adjustedagainst the business income amountand 20 percent of the businessincome (20 percent x 20,000 =$4,000) and taxes paid (20 percentx 2,000 = $400) should be used tocalculate the resident credit.

• Resident credit would then be $123.

• Business income of $48,400 (50,000– (2,000 x 80 percent = $1,600),interest income of $25,000 and gainsof $25,000 would be reported on thePA-41, Fiduciary Income Tax Return.

• Total income would then be $98,400and taxable income $38,400.

• The PA-41 Schedule RK-1 to theindividual still shows $60,000 ofincome to the beneficiary because theindividual still received that amountas a distribution.

• The only time the PA-41 ScheduleRK-1 income would be adjusted isif the distribution was all of theinterest and business income ormore than the net total interest andbusiness income on the return (forthis example).

Total Other Credits from PASchedule OCEnter the total allowable credits fromLine 15, PA Schedule OC. See the PA-40Schedule OC and the instructions on thedepartment’s website.

Pennsylvania Income Tax WithheldEnter any Pennsylvania income tax with-held from federal Forms W-2 or 1099.Most estates and trusts will not completethis line.

However, Pennsylvania income tax with-held on income in respect of a decedent(not taxable for estate or trust incometax purposes, but includable in the valueof an estate for inheritance tax purposes)should be included on this line along withany Pennsylvania income tax withheld inerror on estate or trust income.

Total Payments and CreditsAdd Lines 13, 14, 15, 16 and 17.

Use TaxUse tax is the counterpart of sales taxand applies to taxable purchases madeover the Internet, through toll-free num-bers, from mail order catalogs and fromout-of-state locations, or any other occa-sion where sales tax was not chargedand collected by the seller. The use taxrate is the same as the sales tax rate: 6percent state tax, plus an additional 1percent local tax for items purchased or used in Allegheny County and 2 percentlocal tax for Philadelphia.

If the estate or trust purchases items orservices subject to sales tax for whichthe seller does not charge and collectsales tax on the invoice or receipt, theestate or trust is responsible for remittingthe use tax directly to the PA Departmentof Revenue.

Example. Taxable items include antiques,paintings, appliances, books, stationery,computers, exercise equipment, sportsequipment, formal clothing, furniture,furnishings, jewelry, luggage, handbags,musical instruments, office equipment,souvenirs, televisions, radios, stereoequipment, video equipment and cameraequipment.

Example. Taxable services include lawncare, pest control, self-storage, buildingcleaning and maintenance services suchas housekeeping services. See theRetailer’s Information Guide (REV-717)for an extensive, though not comprehen-sive, list of taxable items and services.

This method of reporting and paying usetax may not be used for purchases ofmotor vehicles, watercraft, boats, ATVs,snowmobiles or cigarettes.

If the estate or trust has receipts orpurchase records for items or servicessubject to use tax, use the worksheet inthe next column to calculate the estate ortrust’s use tax liability. Estates and trustsare encouraged to review purchase his-tories made available online by popularInternet sellers and use that informationto calculate the tax due.

NOTE: This worksheet must beused to calculate use tax due on

individual purchases over $1,000.

If the estate or trust paid some sales taxon items – for example, sales tax at alower rate paid to another state or salestax paid to Pennsylvania but not Philadel-phia – the estate or trust may offset itsuse tax liability by the sales tax alreadypaid using this worksheet.

TIP: If the estate or trust does nothave a use tax liability or filed

form PA-1 to report and pay use tax, thestate or trust must enter zero on Line 19.

IMPORTANT: The departmentreserves the right to assess addi-

tional use tax due if and when it discoversevidence that the total purchase amountreported on the PA-41, Fiduciary IncomeTax Return, is less than the actualpurchase amount.

Businesses with Pennsylvania sales taxlicenses should report use tax on theirsales tax returns.

For detailed information on use taxreporting responsibilities and options,visit www.revenue.state.pa.us/usetax.

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Use Tax Worksheet

1. Purchases of taxableitems subject to Pennsylvania use tax,including shipping &handling

2. Purchases of taxableservices subject toPennsylvania use tax

3. Total taxable purchases

4. Tax rate (0.07Allegheny County, 0.08 Philadelphia or0.06 state)

5. Use tax: Multiply Line3 by Line 4

6. Sales tax previouslypaid on any amountincluded on Lines 1and 2 (up to 0.07 peritem for AlleghenyCounty, 0.08 forPhiladelphia or0.06 state)

7. Total use tax liability.Subtract Line 6 fromLine 5 and enter theamount here and onLine 19 of your PA-41,Pennsylvania fiduciaryincome tax return

Amount

0.__ __


Tax DueIf Line 12 is more than the total of Lines18 and 19 enter the difference on this line.

Estimated UnderpaymentInterest PenaltyIf Line 20, less Line 19, is more than tenpercent of Line 11, the estate or trust isliable for an estimated underpaymentpenalty.

Pennsylvania law requires estimatedPennsylvania personal income taxpayments if the estate or trust earned,received, or realized more than $8,000of Pennsylvania-taxable income.

Pennsylvania law does provide specificexceptions (safe harbors) to this penalty,and the estate or trust can calculate itspenalty at the applicable interest rates onREV-1630F, Underpayment of EstimatedTax by Fiduciaries.

IMPORTANT: Request REV-1630Ffor each tax year for which the

estate or trust owes the penalty.

Late Filing and UnderpaymentPenalty and InterestIf paying the tax after the due date, theestate or trust must also pay applicablepenalty and interest. See Penalty andInterest.

If including REV-1630F, Underpaymentof Estimated Tax by Fiduciaries, fill in theoval on Line 21 on the PA-41, FiduciaryIncome Tax Return.

Enter the appropriate code in the blockprovided. Descriptions of the codes thatcan be entered in the block are as follows:

• L - If late payment penalty and inter-est, failure to file penalty or interestor late filing penalty and Interest isincluded in Line 21

• E - If only estimated underpaymentpenalty is included in Line 21

• B - If both late payment penalty andinterest and estimated underpaymentpenalty are included in Line 21;

• X - Indicates there is no estimatedunderpayment penalty due to excep-tion 2 or the special exception rulesas indicated on the completed andincluded REV-1630F.

IMPORTANT: If you do not oweany penalty or interest, do not

complete the amount block for Line 21leave it blank. If there is no amountincluded on Line 21 of the return, nocode should be entered in the blockprovided for the code on this line unlessREV-1630F is included with the returnthat indicates there is no estimatedunderpayment penalty due to exception2 or the special exception rules as indi-cated on the completed and includedREV-1630.

All returns with amounts listed on Line21 should have a code listed in the blockprovided for the code on this line. Seethe description of codes listed above forthe proper code to enter when REV-1630Fis included.

To determine the applicable interest rate,obtain REV-1611, Interest Rate and Cal-culation Method for All Taxes Due AfterJan. 1, 1982. The department will applypayments in the order of tax, interest,and penalty as prescribed by Pennsyl-vania law.

Total PaymentAdd Lines 20 and 21. This is the 2014amount due with the PA-41, FiduciaryIncome Tax Return. Pay the total due, infull, on or before April 15, 2015.

Fiscal-year filers must pay by the 15thday of the fourth month following theclose of the tax year.

If you owe $1 or less, you do not haveto submit a payment with your return.

Overpayment If Line 18 is more than the total of Lines12, 19 and 21, enter your overpayment.The total of Lines 24 and 25 must equalLine 23.

RefundFor a refund of the amount of Line 23,enter the amount the trust or estate wantsas a check mailed to the estate or trust.

Direct Deposit Refunds(Electronically Filed Returns Only)Estates and trusts that e-file the PA-41,Fiduciary Income Tax Return, can receivea direct deposit refund for overpaymentof Pennsylvania tax.

Estates and trusts have three optionswhen the PA-41, Fiduciary Income TaxReturn, shows an overpayment of Penn-sylvania tax.

The estate or trust may elect to have theoverpayment:

• Applied to next year’s tax;

• Refunded in the form of a refundcheck; or

• Refunded directly into the trust’s orestate’s bank account by electronictransfer (direct deposit) for e-filedreturns only.

Paper-filed PA-41, Fiduciary Income TaxReturn, requesting a refund of overpay-ment of Pennsylvania personal incometax will only receive a mailed check.

International ACH TransactionsThe Federal Office of Foreign AssetsControl has imposed additional reportingrequirements on all electronic bankingtransactions that directly involve a finan-cial institution outside of the territorialjurisdiction of the U.S. These transactionsare called international ACH transactions(IAT). Presently, the Pennsylvania Depart-ment of Revenue does not support IATACH debit transactions. Taxpayers whoinstruct the department to process elec-tronic banking transactions on theirbehalf are certifying that the transactionsdo not directly involve a financial institu-tion outside of the territorial jurisdictionof the U.S. at any point in the process.

CreditFor a credit to the 2015 Pennsylvaniaestimated tax account of the estate ortrust, enter the amount from Line 23.

TIP: If the estate or trust requestsa refund and a credit, enter the

amounts on Lines 24 and 25. The total ofthese lines must equal Line 23.

Paper Filed Returns Signature of FiduciaryThe estate or trust has not filed a validPA-41, Fiduciary Income Tax Return,unless it is properly signed.

The fiduciary signing the return verifiesby written declaration, under penalties ofperjury, that he or she personally hasexamined the PA-41, Fiduciary IncomeTax Return, and its accompanying sched-ules and to the best of his or her knowl-edge, the PA-41, Fiduciary Income TaxReturn, is true, correct and complete.

LINE 22

LINE 21

LINE 23

LINE 24

LINE 25

WHO MUST SIGN

LINE 20

PAGE 2

The estate or trust official responsible forsigning the PA-41, Fiduciary Income TaxReturn, must sign it by hand; signaturestamps or labels are not acceptable, andinclude his or her title, date and daytimephone number.

The responsible official must submit allrequired schedules with the PA-41, Fidu-ciary Income Tax Return, including thePA-41 Schedules RK-1 and NRK-1 foreach beneficiary.

Preparer’s Signature and NameA paid preparer may sign original oramended returns by rubber stamp,mechanical device or computer softwareprogram. Pennsylvania follows federalguidelines for signature requirements forthe preparer.

If the fiduciary or an employee of theestate or trust completes the PA-41,Fiduciary Income Tax Return, the paidpreparer’s space should remain blank.In addition, anyone who prepares thePA-41, Fiduciary Income Tax Return butdoes not charge the estate or trust shouldnot complete the paid preparer section.

Anyone who prepares a PA-41, FiduciaryIncome Tax Return for a fee or incidentto the performance of services for whichthe preparer charges a fee e.g. anattorney provides legal services for a feeand includes for free, the preparation ofthe PA-41, Fiduciary Income Tax Return,must do the following.

• Print or type the paid tax returnpreparer’s company or corporationfederal employer identificationnumber, if applicable.

• Print or type the preparer’s PreparerTax Identification Number (PTIN). Ifyou are a preparer, you must use aPTIN issued by the Internal RevenueService (IRS) to identify yourself inthe paid preparer section of the taxreturn.

Electronically Filed ReturnsAn electronic return must be signed bythe fiduciary or authorized individual orrepresentative.

An electronic return must also be signedby the paid preparer, if applicable.

Two signature options are available, asdescribed below.

1. PA-8879, Pennsylvania e-FileSignature Authorization; or

2. PA-8453, Pennsylvania IndividualIncome Tax Declaration for Elec-tronic Filing.

PA-8453 FormIf a taxpayer elects not to use the federalself-select PIN or a return is filed withouta federal return, the PA Department ofRevenue requires Electronic ReturnOriginators (EROs) and transmitters toretain completed PA-8453 forms andsupporting documents for three yearsafter the due date of the return or thedate the return was filed electronically,whichever is later. EROs and transmittersmust make the documents available to thePA Department of Revenue upon request.

Do not mail PA-8453 forms and attach-ments to the department unlessrequested.

NOTE: If an ERO or transmittercloses its business, it must mail all

forms to the following address with aletter of explanation.

PA DEPARTMENT OF REVENUEBUREAU OF INDIVIDUAL TAXESELECTRONIC FILING SECTIONPO BOX 280507HARRISBURG PA 17128-0507

Any taxpayer filing electronically from ahome computer must keep the signedPA-8453 forms and supporting documentsfor three years after the due date of thereturn or the date the return was filedelectronically, whichever is later.

Taxpayers must make the documentsavailable to the PA Department ofRevenue upon request. Do not mailPA-8453 forms and attachments to thedepartment unless requested.

The responsible official must file allrequired schedules with the PA-41, Fidu-ciary Income Tax Return, including thePA-41 Schedules RK-1 and NRK-1.

PA-8879 FormThe federal self-select PIN option consistsof two PINs, one for the taxpayer andone for the practitioner.

In order for the department to accept thefederal self-select PIN as a signature,software developers must display ajurat/disclosure statement Taxpayers andElectronic Return Originators (EROs)must complete the PA-8879 form whenusing this method and consenting toelectronic funds withdrawals.

The department requires EROs to retaincompleted PA-8879 forms for sevenyears after the due dates of the returnsor the dates the returns were filedelectronically, whichever is later.

Do not mai l PA-8879 forms andattachments to the department unlessrequested.

Instructions for PA-41 ScheduleOI-Other InformationPA-41 Schedule OI is located on thebottom half of Page 2 of the PA-41,Fiduciary Income Tax Return.

See separate instructions for PA-41Schedule OI on the department’s website.

Revenue e-Services Center atwww.revenue.state.pa.usThis is the location for all the department'selectronic filing services. There are manyelectronic filing and payment optionsavailable for both individual and businesstaxpayers.

Visit the website and learn about theservices that may be available to youand take advantage of the speed, ease,convenience, and peace of mind theseprograms provide.

Online Customer Service Centerat www.revenue.state.pa.usIf you have Internet access, you can findanswers to commonly asked questionsby using the department’s Online Cus-tomer Service Center. Use the Find anAnswer feature to search the databaseof commonly asked questions. If you donot find your answer in this area, youcan submit your question to a customerservice representative.

PA Personal Income Tax Guide(PA PIT Guide)The department’s Pennsylvania PersonalIncome Tax Guide has information thatexplains Pennsylvania’s income tax, andits differences from federal rules. Youcan only access the PA PIT Guide at thedepartment’s website. You can openspecific chapters of the PA PIT Guideand use the search features of AdobeAcrobat Reader™ to find additionalinformation on PA personal income taxrules. The department offers a link for freedownload of the Adobe Acrobat Reader™,which is necessary to access the Penn-sylvania Personal Income Tax Guide.

Taxpayer Service and Information CenterCall 717-787-8201 for Pennsylvaniapersonal income tax help during normalbusiness hours, 7:30 a.m. to 5 p.m.

TAXPAYER SERVICES ANDASSISTANCE

ONLINE SERVICES

TELEPHONE SERVICES



1-888-PATAXES Touch-tone service is required for thisautomated 24-hour toll-free line. Call toorder forms or check the status of apersonal income tax account, corporationtax account or property tax/rent rebate.

Harrisburg-area residents may call717-425-2533.

Forms Ordering ServicesTo obtain forms not available in thisbooklet, visit a Revenue district office, oruse one of the following services:

Internet:www.revenue.state.pa.usPennsylvania income tax forms, sched-ules, brochures, electronic filing options,and other information are available onthe department’s website. If you do nothave Internet access, visit your localpublic library.

Email Requests for forms: [email protected]

Automated 24-hour Forms Ordering Message Service: 1-800-362-2050This line serves taxpayers withouttouch-tone telephone service.

Written Requests:

PA DEPARTMENT OF REVENUETAX FORMS SERVICE UNIT711 GIBSON BLVDHARRISBURG PA 17104-3218

Services for Taxpayers with Special Hearing and/or Speaking Needs:1-800-447-3020 (TTY)

Language ServicesNon-English-speaking taxpayers canreceive assistance from the departmentthrough an interpretation service.

EspañolEl Departamento de lmpuestos puedeayudar los contribuyentes que no hablaninglés por medio de un servicio detraducción durante el periodo de pagode impuestos.

Federal Tax AssistanceFederal tax account or technical informa-tion and problem solving are availableby calling: 1-800-829-1040.

Recorded Tele-Tax Service on federaltax topics or tax refund information isavailable by calling: 1-800-829-4477.

Federal tax forms and publications areavailable by calling: 1-800-829-FORM(3676).

OTHER SERVICES

Pennsylvania Fiduciary Income Tax Return · nia-source income. • Several new or revised filing...

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