Instructions For Pa-41 Schedule B - Dividend And Capital Gains Distributions Income - Pennsylvania Department Of Revenue - 2014

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2014
Pennsylvania Department of Revenue
Instructions for PA-41 Schedule B
Dividend and Capital Gains Distributions Income
Pennsylvania and federal tax laws and
LINE INSTRUCTIONS
WHAT’S NEW
where there is no specific line to record
that difference. Enter any other adjust-
Please read the Line 2 Instructions on
The requirements for when to submit
ments that decrease PA dividend income
Pages 16 and 17 of the Instructions for
PA-41 Schedule B have changed and
and provide a description of the amounts.
Form PA-41 prior to completing this
having dividends and capital gains
An example would include dividend
schedule.
distributions in excess of $2,500 will
income for a nominee taxpayer recorded
on the 1099 as dividend income of the
no longer be used to determine if an
LINE 1
estate or trust. Do not include expenses
estate or trust must submit PA-41
incurred to realize dividend income.
Schedule B.
Enter the amount of dividend income
reported on Line 2 of the estate or trust’s
If the estate or trust’s total PA-taxable
LINE 5
federal Form 1041. If there are no
dividend and capital gains distributions
amounts for Lines 2 through 10 of PA
Add the amounts on Lines 2, 3 and 4.
income is equal to the amount reported
Schedule B, stop here. An estate or trust
on the estate or trust’s federal Form 1041
must report the amount on Line 2 of the
LINE 6
and there are no amounts for Lines 2
PA-41 form but the estate or trust is not
through 10 of Schedule B, the estate
required to include a copy of the PA-41
Subtract Line 5 from Line 1.
or trust must report the dividends and
Schedule B with the PA-41.
capital gains distributions income on
LINE 7
LINE 2
Line 2 of the PA-41, Fiduciary Income
Tax Return, but the estate or trust does
If the estate or trust has adjustments to
If the estate or trust has any investments
not have to submit Schedule B. If there
federal-taxable dividend income that
in partnerships or S corporations or any
increase the amount of dividend income
are any amounts for any of the Lines 2
dividend income from other estates or
reported for federal purposes due to
through 10 of Schedule B, the estate
trusts, the estate or trust must include
differences between Pennsylvania and
or trust must complete and submit
the amount reported for federal income
federal tax laws, enter any other adjust-
Schedule B with the estate or trust’s
tax purposes. Enter the total amount of
ments for items that increase PA-taxable
PA-41, Fiduciary Income Tax Return.
dividend income included in the amount
interest income and provide a description
reported for Line 2 of federal Form 1041
of the amounts. Examples include: dis-
from all federal Schedule(s) K-1.
tributions from non-PA S corporations,
GENERAL INFORMATION
tax-exempt interest dividends and
LINE 3
expenses incurred to realize dividend
PURPOSE OF SCHEDULE
income. Include a statement providing the
Use PA-41 Schedule B to report dividend
If the estate or trust has investments in
descriptions and amounts if more than
and capital gains distributions income of
funds which have investments where
one type of adjustment is included in the
estates and trusts.
some of the income is tax exempt, the
amount reported for this line.
tax-exempt earnings associated with
Pennsylvania or U.S. government obli-
LINE 8
FORM INSTRUCTIONS
gations are not taxable for Pennsylvania
purposes. Enter the total amount of any
For Pennsylvania purposes, capital gains
Name
tax-exempt dividends from direct obliga-
distributions are taxable as dividend
Enter the complete name of the estate
tions of the Commonwealth of Pennsyl-
income not as capital gains as for federal
or trust as shown on the PA-41, Fiduciary
vania, direct obligations of political
purposes. Enter the amount of capital
Income Tax Return.
subdivisions of Pennsylvania and/or
gains distributions included as capital
direct obligations of the U.S. Government
gains on federal Schedule D.
FEIN or Decedent’s SSN
(U.S. Treasury Bonds, Notes, Bills,
Enter the nine-digit federal employer
TIP: Do not report capital gains
Certificates and Savings Bonds) included
identification number (FEIN) of the estate
distributions on PA-41 Schedule D.
in any tax-exempt fund or money market
or trust or the decedent’s Social Security
fund dividends.
number as shown on the PA-41, Fiduciary
LINE 9
Income Tax Return.
LINE 4
Dividend Income from Partner-
TIP: An estate with a FEIN should
ships from PA Schedules RK-1
Estates or trusts may need to record
not use the decedent’s Social
other adjustments to federal interest
If the estate or trust is an owner in a part-
Security number.
income to account for differences in
nership or entity formed as a limited
PA-41 Schedule B
1

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