Instructions For Pa-20s/pa-65 Schedule Nrk-1

Include the excess withholding

●

a withdrawal proportionately from

Line Instructions

paid on behalf of nonresidents of

the capital of all partners;

Pennsylvania if the owner will receive

●

a gain from the disposition of the

a refund or credit of the excess.

Part II

recipient’s partnership interest and a

loss from the disposition of the other

Owner’s Distributive

Line 7

partners’ partnership interests, to the

Share of Pennsylvania-

extent derived from the capital of the

Total Other Credits

other partners; and

Source Income (Loss)

Enter the owner’s pro rata share

●

a return of capital by the recipients

from PA-20S/PA-65 Information

to the extent derived from their own

Line 1

Return, Line 13a. The entity must

capital. The distributions that the

provide the owner with a statement

Pennsylvania Taxable

partnership makes that represent

listing which credit(s) have been

repayments of the partner’s own

Business Income (Loss)

passed through to them.

capital are not considered income for

from Operations

Pennsylvania personal income tax

Enter the owner’s pro rata

Important.

See PA-20S/PA-

purposes.

distributive share from the PA-

65 Schedule OC instructions

20S/PA-65 Information Return, Line

for which credits must be applied to

Line 10

2h. The entity must report the

corporate tax liability prior to being

owner’s share of income (loss)

All Other Guaranteed

passed through to the entity’s

whether distributed or not. If

Payments for Services

owners.

reporting a loss fill in the oval.

Rendered (Pennsylvania-

Apportioned Amount Only)

Part IV

Guaranteed payments should

Enter the partner’s share of such

not be included on Line 1 of

Distributions from

payments taxable in Pennsylvania.

the PA-20S/PA-65 Schedule

Pennsylvania taxes nonresident of

Partnerships

NRK-1.

Pennsylvania guaranteed payments

Noncorporate shareholders and

based on Pennsylvania-apportioned

partners should use the amounts

Line 2

calculations for ordinary income.

from PA-20S/PA-65 Schedule NRK-1,

Net Gain (Loss) from the

Part IV through Part VII, (other than

Note.

The partner must know

Sale, Exchange or

Line 10 and Line 15) to determine or

the class of income from

calculate their Pennsylvania

Disposition of Property

which the partnership made the

economic investment in the entity.

This figure will flow from PA-20S/PA-

guaranteed payments. The partner

Partners include Line 10 in net

65 Schedule D, Part I, Line 18. If

must then properly classify the

classified income on their

reporting a loss fill in the oval.

payments on his/her PA-40

Pennsylvania tax returns.

Individual Income Tax Return.

Lines 3 through 5

Line 8

Enter the owner’s pro rata

Important.

If the total

Distribution of Cash,

distributive share of the separately

guarantee payments include

Marketable Securities and

stated items of other Pennsylvania-

more than one of the income

taxable income (loss) from the PA-

Property Not Including

classes described below, the

20S/PA-65 Information Return. If

Guaranteed Payments

partnership must provide a

reporting a loss on Line 3 and/or Line

statement to the partners showing

Enter the partner’s share of such

5, fill in the oval.

the amounts for each line.

distributions of cash, marketable

securities and property other than

For Pennsylvania personal income

guaranteed payments. Nontaxable

Part III

tax purposes guaranteed payments

distributions reduce the nonresident’s

are classified as follows:

economic investment.

Owner’s Share of

●

If services are rendered directly in

Pennsylvania Credits

the production of income from a

Line 9

Enter the owner’s pro rata

business, profession, or farm, the

Guaranteed Payments for

distributive share of the separately

guaranteed payments are gross

stated credits that the PA S

Capital or Other Services

income from that income class.

corporation or partnership passes

Enter the partner’s share of

●

If services are rendered directly in

through to the owners from the PA-

guaranteed payments for capital or

the production of rental or royalty

20S/PA-65 Information Return.

other services. Guaranteed payments

income, the guaranteed payments

are apportioned the same as

are gross income from that income

Line 6

business income. For example if the

class.

guaranteed payment is $100 and the

A guaranteed payment is

Pennsylvania Nonresident

Pennsylvania apportionment is 50

allocable to Pennsylvania to the

Tax Withheld

percent, then only $50 is included in

extent it is deductible from net

Enter the Pennsylvania nonresident

the business income.

profits or rental and royalty income

tax withheld from nonresident

Pennsylvania personal income tax

that is allocable to Pennsylvania.

owners of Pennsylvania that was

rules classify distributions of

Income allocable to Pennsylvania is

submitted to the Pennsylvania

guaranteed payments for capital or

income derived from Pennsylvania

Department of Revenue.

other services as follows:

sources.

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Instructions for PA-20S/PA-65 Schedule NRK-1

Instructions For Pa-20s/pa-65 Schedule Nrk-1 - 2011 Page 4

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