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reported from all PA Schedule(s) RK-1,

is classified as a S corporation for federal

LINE 8

or federal Schedule(s) K-1 if an RK-1

income tax purposes. If the estate or

is not provided. Include any U.S. govern-

trust receives only a federal Form 1120S

Estates or trusts may need to record

ment interest from federal Schedule(s)

Schedule K-1, the estate or trust must

other adjustments to federal interest

K-1, where PA Schedule(s) RK-1 is/

obtain a PA-20S/PA-65 Schedule RK-1

income to account for differences in

are not provided, on Line 8 of PA

from the entity. The department will only

Pennsylvania and federal tax laws and

Schedule A.

permit the estate or trust to adjust and

where there is no specific line to record

reclassify the income from the federal

that difference. Enter any other adjust-

If the estate or trust realizes income from

Form 1120S Schedule K-1 according to

ments that decrease PA interest income

more than one partnership, provide a

Pennsylvania rules in limited circum-

and provide a description of the amounts.

statement showing the FEIN, name and

stances. See the PA PIT Guide, Chapter

Examples include: interest on installment

amount of income by each partnership.

16, Pass Through Entities, for additional

obligations that are included as gain on

Submit all PA-20S/PA-65 Schedules

information on the adjustments required

the sale of property for PA purposes;

RK-1 to support the amount reported on

and the proper classification of income.

forfeited interest penalty; and amortiza-

PA-41 Schedule A Line 12. Include a

tion of bond premium. An example of the

copy of federal Form 1065 Schedule

LINE 14

description for interest income earned

K-1 if a PA-20S/PA-65 Schedule RK-1 is

while a nonresident would be “Forfeited

Gambling and Lottery Winnings

not supplied by a partnership, or entity

Interest Penalty”. Do not include expenses

formed as a limited liability company that

Enter the amount of any taxable

incurred to realize interest income.

is classified as a partnership for federal

gambling and lottery winnings of the

Include a statement providing the

income tax purposes. If the estate or

estate or trust.

descriptions and amounts if more than

trust receives only a federal Form 1065

one type of adjustment is included in the

As a result of Act 84 of 2016, Pennsyl-

Schedule K-1, the estate or trust must

amount reported for this line.

vania-taxable gambling and lottery

adjust and classify the income from

winnings for estates and trusts now

the federal Form 1065 Schedule K-1

LINE 9

includes cash prize payments made by

according to Pennsylvania rules. See

the Pennsylvania Lottery on or after

the PA PIT Guide, Chapter 16, Pass

Add the amounts on Lines 5, 6, 7 and 8.

Jan. 1, 2016. Cash prize payments

Through Entities, for additional informa-

include all annuity prize payments made

tion on the adjustments required and the

LINE 10

by the Pennsylvania Lottery in 2016.

proper classification of income.

Cash prize payments also include

Subtract Line 9 from Line 4.

LINE 13

any federal and state withholding tax

LINE 11

payments, sales taxes and any other

Interest Income from S Corpora-

fees paid by the Pennsylvania Lottery on

tions from PA Schedules RK-1

Distributions from life insurance,

behalf of the winner. Any PA personal

annuity or endowment contracts

If the estate or trust is an owner of an S

income tax withholding on prize pay-

or charitable gift annuities

corporation or entity formed as a limited

ments made after July 12, 2016, should

included in federal taxable income

liability company that is classified as a S

be reported on Line 17 of the PA-41,

corporation for federal income tax

Distributions from a commercial insur-

Fiduciary Income Tax Return when

purposes, the estate or trust will receive

ance or mutual company annuity (code

included in Box 15 of federal Form

a PA-20S/PA-65 Schedule RK-1 showing

D also included with codes 1, 2, 3, 4 and

W-2G, Certain Gambling Winnings.

its share of any interest income.

7) purchased as a retirement annuity, or

Resident Estates and Trusts

any distributions from a life insurance or

Enter the amount of interest income from

Report the amount of any gambling

endowment contract or charitable gift

PA S corporations. Include the amounts

winnings from sources inside and

annuity that are included in federal gross

reported from all PA Schedule(s) RK-1, or

outside the commonwealth. Report the

taxable income are taxable as interest

federal Schedule(s) K-1 if an RK-1 is not

amount of any lottery winnings from all

income for Pennsylvania personal income

provided. Include any U.S. government

lotteries other than noncash prizes of the

tax purposes for an estate or trust.

interest from federal Schedule(s) K-1,

Pennsylvania Lottery.

where PA Schedule(s) RK-1 is/are not

LINE 12

Nonresident Estates and Trusts

provided, on Line 8 of PA Schedule A.

Report the amount of any gambling

Interest Income from Partnerships

If the estate or trust realizes income from

winnings from Pennsylvania sources

from PA Schedules RK-1

more than one PA S corporation, provide

or lottery winnings from sources within

If the estate or trust is a partner in a

a statement showing the FEIN, name,

Pennsylvania other than noncash prizes

partnership or a member in an entity

and amount of income by each PA S

of the Pennsylvania Lottery.

formed as a limited liability company that

corporation.

is classified as a partnership for federal

LINE 15

Submit all PA-20S/PA-65 Schedules RK-1

income tax purposes, the estate or trust

to support the amount reported on PA-41

will receive a PA-20S/PA-65 Schedule

Total Interest Income and

Schedule A Line 13. Include a copy of

RK-1 showing its share of any interest

Gambling and Lottery Winnings

federal Form 1120S Schedule K-1 if a

income.

PA-20S/PA-65 Schedule RK-1 is not

Add Lines 10, 11, 12, 13 and 14. Enter

Enter the amount of interest income

supplied by the S corporation or entity

on Line 1 of the PA-41, Fiduciary Income

from partnerships. Include the amounts

formed as a limited liability company that

Tax Return.

PA-41 Schedule A

RETURN TO FORM

Instructions For Pa-41 Schedule A - Interest Income And Gambling And Lottery Winnings - Pennsylvania Department Of Revenue - 2016 Page 2

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