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2011

Pennsylvania Department of Revenue

Instructions for PA-20S/PA-65 Schedule B

Dividend and Capital Gains Distribution Income

The term dividends shall not

What’s New

Line 3

include a distribution of stock of a

Added the word “include” to Line 8

Adjusted Federal Dividend

corporation made by the corporation

between “income” and “on.”

Income

originally issuing it to its own

Subtract Line 2 from Line 1. Enter

stockholders if such distribution is

the result on Line 3.

General Information

not treated as personal income for

federal individual income tax

Line 4

purposes.

Purpose of Schedule

The Pennsylvania definition of

Federal-Exempt Dividend

Use PA-20S/PA-65 Schedule B to

dividends is similar, but not identical,

Income Taxable for

report dividend and capital gains

to the federal definition. Distributions

Pennsylvania Personal

distributions income of PA S

from mutual funds, money market

corporations, partnerships, estates

Income Tax

funds, and real estate investment

and trusts and limited liability

trusts are classified as dividends for

Enter the amount reported on federal

companies filing as partnerships or

Pennsylvania purposes and interest

Schedule K from line “Other tax-

PA S corporations for federal income

for federal purposes. Distributions

exempt income.”

tax purposes.

from PA S corporations are

Dividend income is any

reportable as dividends by resident

Line 5

distribution to the entity of cash or

shareholders only if it is from PA C

Other Dividend Income Not

property from the accumulated

corporation earnings and profits.

earnings and profits or current

Included on Line 3 and

earnings and profits of a corporation,

Line 4

Completing the

association, or business trust.

If the entity received dividend

Dividends reported on the PA-

income reported on a line other than

PA Schedule B

20S/PA-65 Information Return and

federal 1120S Schedule K, Line 5a or

PA-20S/PA-65 Schedule B is total

federal 1065 Schedule K, Line 6a

Business Name

dividends earned by the entity itself.

then report as dividend income for

There is no need to distinguish

Enter the complete name of the

Pennsylvania personal income tax

between resident and nonresident

entity or business as shown on the

purposes on PA-20S/PA-65 Schedule

portions since dividends are not a

PA-20S/PA-65 Information Return.

B, Line 5.

class of income on the PA-20S/PA-65

Schedule NRK-1. For Pennsylvania

FEIN

Line 6

personal income tax purposes,

Enter the 9-digit federal employer

Capital Gains Distributions

nonresidents are not taxed on

identification number (FEIN) of the

dividends from Pennsylvania sources.

Income

entity or business as shown on the

Dividends are ignored by the

Enter the amount reported on PA-

PA-20S/PA-65 Information Return.

nonresident unless the entity has

20S/PA-65 Schedule M, Part A,

reclassified dividends on PA-20S/PA-

Column d, Line 5, 7, 8 and 11.

Line Instructions

65 Schedule M, Part A and PA-

20S/PA-65 Schedule B, Line 2 as

Note.

Pennsylvania taxes

working capital, in which case it will

Line 1

capital gains distributions

be included with business or rental

from mutual funds as dividends.

Ordinary Dividend Income

income.

from Federal Schedule K

Line 7

Enter the amount reported on federal

Pennsylvania-Taxable

Schedule K. This number will also tie

Gross Pennsylvania-Taxable

Dividend Income

to PA-20S/PA-65 Schedule M, Part A,

Dividend Income

Line 5, Column a. Include federal

Pennsylvania law (72 P.S. § 7301(f))

Add Lines 3 through 6, and enter the

Schedule K-1 dividend income from

provides that dividends mean any

result on Line 7.

other entities.

distribution in cash or property made

by a corporation, association, or

Line 8

Line 2

business trust that is:

Pennsylvania-Exempt

●

out of accumulated earnings and

Less Business or Rental

Dividend Income Included on

profits; or

Dividend Income (Working

Line 7

●

out of earnings and profits of the

Capital)

Enter income reported as federal

year in which such dividend is paid.

Enter the amount reported on PA-

dividend income that has been taxed

20S/PA-65 Schedule M, Part A, Line

federally and is exempt for

5, Column b and/or Column f.

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Instructions For Form Pa-20s/pa-65 - Schedule B - Dividend And Capital Gains Distribution Income - 2011

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