Pennsylvania PA Schedule A - Interest Income

PA Schedule A - Interest Income
2023 PA Schedule A - Interest Income (Form and Instructions) (PA-40 A)
IMPORTANT: FILL IN FORM MUST BE DOWNLOADED ONTO YOUR COMPUTER PRIOR TO COMPLETING
2301210056

PA SCHEDULE A
Interest Income
PA-40 A (EX) 03-23 (FI)
PA Department of Revenue

START

2023

OFFICIAL USE ONLY

Name (if filing jointly, use name shown first on the PA-40)

Social Security Number (shown first)

➜
CAUTION: Federal and PA rules for taxable interest income are different. Read the instructions.
If your total PA-taxable interest income (taxpayer, spouse and/or joint) is equal to the amount reported on your federal return and you have
no amounts for Lines 2 through 15 (not including subtotal Lines 4 and 10) of PA Schedule A, you must report your income on Line 2
of the PA-40, but you do not have to submit PA Schedule A. If there are any amounts (taxpayer, spouse and/or joint) for any of the
Lines 2 through 15 (not including subtotal Lines 4 and 10) of the schedule, you must complete and submit PA Schedule A with your
PA-40. A taxpayer and spouse must complete separate schedules to report their income if any amounts are reported on Lines 2 through
15 (not including subtotal Lines 4 and 10) of Schedule A. However, if all the income is earned on a joint basis, one schedule may be
completed. Complete the oval to indicate whether the income included on the schedule is from the taxpayer, spouse or joint. If a separate
PA Schedule A is prepared for a taxpayer and spouse, include only the taxpayer or spouse share of the income for each line.

PA SCHEDULE A - PA-Taxable Interest Income
Taxpayer

Spouse

(See the instructions.)

Joint
1. $

1. Interest income reported on your federal return. See instructions.

2. $

2. Tax-exempt interest income included in Line 2a of your federal return.
3. Other addition adjustments. See instructions.

3. $

Description:

4. $

4. Add Lines 1, 2 and 3.
5. Interest income from federal Schedule(s) K-1. See instructions.

5. $

6. Interest income from direct obligations of the Commonwealth of Pennsylvania
and/or its municipalities.

6. $

7. Interest income from direct obligations of the U.S. government.

7. $

8. Other reduction adjustments. See instructions.
8. $

Description:

9. $

9. Add Lines 5, 6, 7 and 8.

10. $

10. Subtract Line 9 from Line 4.
11. Distributions from Life Insurance, Annuity or Endowment Contracts included in
federal taxable income.

11. $

12. Distributions from Charitable Gift Annuities included in federal taxable income.

12. $

13. Distributions from IRC Section 529 Qualified Tuition Programs for
non-educational purposes.

13. $

14. Distributions from Health/Medical Savings Accounts included in federal
taxable income.

14. $

15. Interest income from PA S corporations and partnership(s), reported on your
PA Schedule(s) RK-1 or federal Schedule(s) K-1.

15. $

16. Total PA-Taxable Interest Income. Add Lines 10 through 15. Enter on Line 2 of your PA-40.

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16. $

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2023
Instructions for PA-40 Schedule A

Interest Income

PA-40 A (EX) IN 03-23

GENERAL INFORMATION
PURPOSE OF SCHEDULE
Use PA-40 Schedule A to report the amount of interest income earned and reported for federal income tax purposes
from:
● Bank deposits;
● Savings and loan associations;
● Credit unions;
● Bonds;
● Certificates of deposit;
● Interest bearing checking accounts;
● Interest on state, federal, local and foreign tax refunds;
● Mutual savings banks and cooperative banks;
● GNMA and FNMA certificates and other obligations that
are guaranteed by the U.S. government (but not direct
obligations of the U.S. government);
● Obligations of other states and countries; and
● Other deposits, investments, and obligations.
PA-40 Schedule A also adjusts the federal income to determine the PA-taxable interest income by reporting income
and adjustments from:
● Tax-exempt bonds for other states’ obligations;
● Direct obligation of the U.S. government;
● 529 plan distributions for non-educational purposes;
● Distributions from life insurance and endowment contracts;
● Taxable distributions from Medical/ Health Savings accounts; and
● Various other increase and decrease adjustments included in the following instructions.
Refer to the PA Personal Income Tax Guide – Interest section for additional information.

RECORDING DOLLAR AMOUNTS
Show money amounts in whole-dollars only. Eliminate any
amount less than $0.50 and increase any amount that is
$0.50 or more to the next highest dollar.

If there are no amounts on Lines 2 through 15 (not including
subtotal Lines 4 and 10), do not complete and include PA40 Schedule A with the PA-40. However, the amount of interest income received must be reported on Line 2 of the
PA-40. Nonresident taxpayers are not required to complete
PA-40 Schedule A.
Separate schedules must be completed for a taxpayer and
spouse if either has income on Lines 2 through 15 (not including subtotal Lines 4 and 10). Both schedules must be
completed and included even if only one had amounts on
those lines. A joint PA-40 Schedule A may be completed only
if all amounts of interest income are earned on a joint basis.
If some income is earned on a joint basis while other income
is not, the joint income must be split and the taxpayer and
spouse must report their separate share of the income from
the jointly owned accounts on each PA-40 Schedule A.
An amended PA Schedule A must be included with Schedule
PA-40 X if increases or decreases in income amounts on PA
Schedule A are discovered after an original or other amended
return is filed with the department. Section III on Page 2 of
Schedule PA-40 X must be completed to explain any increase
or decrease to the amount of interest income reported on an
amended PA-40, Personal Income Tax Return.

SCHEDULE INSTRUCTIONS
IDENTIFICATION INFORMATION
NAME
Enter the name of the taxpayer. If a jointly filed return, enter the
name of the primary taxpayer (name shown first on the PA-40,
Personal Income Tax Return). Enter the primary taxpayer’s
name when reporting the interest income for the spouse.
SOCIAL SECURITY NUMBER
Enter the Social Security number (SSN) of the taxpayer.
Enter the primary taxpayer’s SSN also when reporting interest income for the spouse.
TAXPAYER OVAL
Complete the taxpayer oval to indicate the interest income
reported is from the taxpayer whose name appears on the
name line.

WHO MUST COMPLETE

SPOUSE OVAL
Complete the spouse oval to indicate the interest income reported was earned by the spouse listed on a PA-40, Personal Income Tax Return, filed using the Married, Filing
Jointly filing status.

PA resident and part-year resident taxpayers must complete
and include PA-40 Schedule A with an originally filed PA-40,
Personal Income Tax Return, if there are any amounts on
Lines 2 through 15 (not including subtotal Lines 4 and 10).

JOINT OVAL
Complete the joint oval if all the interest income reported by
the taxpayer and spouse is earned and being reported on a
joint basis.

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NOTE: Do not use the joint oval to report joint interest
income if any interest income is earned by the taxpayer and/or spouse separately. In such cases, the joint income must be split and the taxpayer and spouse must show
the separate share of the joint interest income on the separate PA-40 Schedule A prepared for each.

tions of the Commonwealth of Pennsylvania and/or direct
obligations of political subdivisions of Pennsylvania. Include
on this line any interest income from obligations issued by
the commonwealth, a public authority, commission, board
or other agency created by the commonwealth or political
subdivision of the commonwealth.

LINE INSTRUCTIONS

LINE 7

IMPORTANT: If a separate PA-40 Schedule A is prepared for a taxpayer and spouse, include only the taxpayer or spouse share of the interest income for each line.

Enter the amount of any interest income from direct obligations of the U.S. Government (U.S. Treasury Bonds, Notes,
Bills, Certificates and Savings Bonds). Do not include
amounts from US obligations reported on federal Schedule
K-1(s) or on Line 3 of federal Schedule B in this amount.
See the REV-1643, Tax-Exempt Obligations for Pennsylvania Personal Income Tax Purposes, for additional information.

LINE 1
Enter the amount of interest income reported on Line 2b of
the federal return. If filing a joint return and are required to
show the interest income for a taxpayer and spouse separately, enter only the taxpayer or spouse’s portion of the interest income reported on Line 2b of the federal return. If a
federal return is not required to be filed, see the instructions
for Line 3.

LINE 2
Enter the total amount of tax-exempt interest income included in Line 2a of federal Form 1040.
CAUTION: Do not include the amount of exempt-interest dividends included in Line 2a of the federal return in this amount. See the instructions for PA-40 Schedule
B.

LINE 3
Enter any other adjustments for items that increase PA-taxable interest income and provide a description of the
amounts. Examples of additions to or deductions from federal interest income that must be added back include, but
are not limited to: taxable distributions from PA ABLE Savings Program Fund accounts; self-charged interest; amortization of bond premium; nominee interest; or expenses
incurred to realize interest income.
IMPORTANT: If a federal return is not required to be
filed, enter on this line the amount of any interest income reported in Box 1 of all federal Forms 1099-INT, Interest Income, as well as any other federally taxable interest
income received from all sources including, but not limited
to, U.S. government interest or interest from federal Schedule K-1s.

LINE 4
Add the amounts on Lines 1 through 3 and enter the result.

LINE 5
Enter the total amount of interest income included in the
amounts reported in Line 1 of federal Schedule B from federal Schedule(s) K-1.

LINE 6
Enter the amount of tax-exempt interest from direct obliga2

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LINE 8
Enter any other adjustments that decrease PA interest income and provide a description of the amounts. Examples
include, but are not limited to: interest income earned while
a nonresident; interest on installment obligations that are included as gain on the sale of property for PA purposes; forfeited interest penalty; interest income from an irrevocable
federal grantor trust that is required to file a PA-41, Fiduciary
Income Tax Return; and amortization of bond premium. An
example of the description for interest income earned while
a nonresident would be “Non-Residency Period Interest”.
Do not include expenses incurred to realize interest income.
Include a statement providing the descriptions and amounts
if more than one type of adjustment is included in the
amount reported for this line.

LINE 9
Add the amounts on Lines 5 through 8 and enter the result.

LINE 10
Subtract the amount on Line 9 from the amount on Line 4
and enter the result.

LINE 11
Enter amounts reported on federal Form 1099-R with Box 7
codes 1, 2, 3, 4, or 7 or C that also include code D.

LINE 12
Enter the amount of charitable gift annuity income taxable
for federal income tax purposes.

LINE 13
Enter the amount of any distributions from IRC Section 529
plans that are for non-educational purposes. The cost recovery method must be used to determine the taxable
amount for contributions made in tax years 2005 and earlier.
The total amount of distributions claimed as deductions for
tax years 2006 and later is taxable.
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LINE 14

LINE 16

Enter the amount of any distributions from Health/Medical
Savings accounts included as Other income on federal Form
1040, Schedule 1.

Add the amounts on Lines 10 through 16 and enter the result.

LINE 15
Enter the amount of interest income from PA S corporations
and partnerships. Include the amounts reported from all PA
Schedule(s) RK-1, or federal Schedule(s) K-1 if an RK-1 is
not provided. Include any U.S. government interest from federal Schedule(s) K-1, where PA Schedule(s) RK-1 is/are not
provided, on Line 8 of PA-40 Schedule A.

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This amount cannot be a negative number. If the result
is negative, an amount has not been included on an
addition line or excess adjustments have been recorded.
Include the total from Line 16 (or the combined Line 16
amounts for taxpayer and spouse using the Married, Filing
Jointly filing status) on Line 2 of the PA-40, Personal Income
Tax Return.

PA-40 A
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