Pennsylvania PA Schedule B - Dividend Income

PA Schedule B - Dividend Income
2023 PA Schedule B - Dividend Income (Form and Instructions) (PA-40 B)
IMPORTANT: FILL IN FORM MUST BE DOWNLOADED ONTO YOUR COMPUTER PRIOR TO COMPLETING
2301510059

PA SCHEDULE B
Dividend Income

PA-40 B (EX) 09-23 (FI)
PA Department of Revenue

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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 dividend income are different. Read the instructions.
If your total PA-taxable dividend and capital gains distributions income (taxpayer, spouse, and/or joint) is equal to the amount reported
on your federal return and does not include any amounts for Lines 2 through 11 (not including subtotal Line 6) of PA Schedule B, you
must report your income on Line 3 of the PA-40, but you do not have to submit PA Schedule B. If there are any amounts (taxpayer,
spouse, and/or joint) for any of the Lines 2 through 11 (not including subtotal Line 6), you must complete and submit PA Schedule B 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 11 (not including subtotal Line 6) of Schedule B. 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 B is prepared for a taxpayer and spouse, include only the taxpayer or spouse share of the income for each line.

PA SCHEDULE B – PA-Taxable Dividend and
Capital Gains Distributions Income (See the instructions.)
Taxpayer

Spouse

Joint

1. Dividend income from Line 3b of your federal return. See instructions.

1. $

2. Dividend income from federal Schedule K-1(s). See instructions.

2. $

3. Pennsylvania exempt-interest dividend income. See instructions.

3. $

4. Other reduction adjustments. See instructions.
4. $

Description:

5. $

5. Add the amounts on Lines 2, 3, and 4.

6. $

6. Subtract Line 5 from Line 1.
7. Total exempt-interest dividends. See instructions.

7. $

8. Other addition adjustments. See instructions.
8. $

Description:
9. Repatriation of foreign income. See instructions.
a. Total earnings and profits included on Line 1 of
IRC Section 965 Transition Tax Statement.

9a.

b. Total payments of earnings and profits included
in Line 9a received in prior years.

9b.

c. Payments of earnings and profits included in Line 9a received in current year.

9c. $

10. Capital Gains Distributions - See instructions.

10. $

11. Dividend income from PA S corporation(s) and partnerships, reported on your
PA Schedule(s) RK-1 or federal Schedule(s) K-1.

11. $

12. Total PA-Taxable Dividend Income. Add Lines 6, 7, 8, 9c, 10, and 11.
Enter on Line 3 of your PA-40.

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12. $

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2023
Instructions for PA-40 Schedule B

Dividend Income

PA-40 B IN 09-23

GENERAL INFORMATION
PURPOSE OF SCHEDULE
Use PA-40 Schedule B to report the amount of dividend income earned and reported for federal income tax purposes
from:
● U.S. corporations
● Foreign corporations
● Mutual Funds
● Other corporate capital investments
PA-40 Schedule B also adjusts the federal income to determine the PA-taxable dividend income by reporting income
and adjustments from:
● Capital gains distributions
● S corporations not electing to be taxed as an S corporation for PA tax purposes
● Exempt-interest dividends from other states bonds
● Various other increase and decrease adjustments included in the following instructions
Refer to the PA Personal Income Tax Guide – Dividends
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.

WHO MUST COMPLETE
PA resident and part-year resident taxpayers must complete
and include PA-40 Schedule B with an originally filed PA-40,
Personal Income Tax Return, if there are any amounts on
Lines 2 through 11 (not including subtotal Line 6). If there
are no amounts on Lines 2 through 11 (not including subtotal
Line 6), do not complete and include PA-40 Schedule B with
the PA-40, Personal Income Tax Return. However, the
amount of dividend income received must be reported on
Line 3 of the PA-40. Nonresident taxpayers are not required
to complete PA-40 Schedule B.
Separate schedules must be completed for a taxpayer and
spouse if either has income on Lines 2 through 11 of PA
Schedule B (not including subtotal Line 6). Both schedules
must be completed and included even if only one had
amounts on those lines. A joint PA-40 Schedule B 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
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of the income from the jointly owned accounts on each PA40 Schedule B.
An amended PA Schedule B must be included with Schedule PA-40 X if increases or decreases in income amounts
on PA Schedule B 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 dividend 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 dividend 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 dividend income for the spouse.
TAXPAYER OVAL
Complete the taxpayer oval to indicate the dividend income
reported is from the taxpayer whose name appears on the
name line.
SPOUSE OVAL
Complete the spouse oval to indicate the dividend income
reported was earned by the spouse listed on a PA-40, Personal Income Tax Return, filed using the Married, Filing
Jointly filing status.
JOINT OVAL
Complete the joint oval if all the dividend income reported
by the taxpayer and spouse is earned and being reported
on a joint basis.
NOTE: Do not use the joint oval to report joint dividend
income if any dividend 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 dividend income on the separate PA-40 Schedule B prepared for each.

LINE INSTRUCTIONS
IMPORTANT: If a separate PA-40 Schedule B is prepared for a taxpayer and spouse, include only the taxpayer or spouse share of the dividend income for each line.
PA-40 B
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LINE 1
Enter the amount of dividend income reported on Line 3b
of the federal return. If filing a joint return and required to
show the dividend income for a taxpayer and spouse separately, enter only the taxpayer or spouse’s portion of the
dividend income reported on Line 3b of the federal return.
If a federal return is not required to be filed, see the instructions for Line 8.

LINE 2
Enter the total amount of dividend income included on Line
5 of federal Schedule B from federal Schedule(s) K-1.

LINE 3
Enter the total amount of any tax-exempt dividends from direct obligations of the Commonwealth of Pennsylvania, direct obligations of political subdivisions of Pennsylvania
and/or direct obligations of the U.S. Government (U.S.
Treasury Bonds, Notes, Bills, Certificates and Savings
Bonds) included in any tax exempt fund or money market
fund dividends.

LINE 4
Enter any other adjustments that decrease PA dividend income and provide a description of the amounts. Examples
would include, but are not limited to: dividend income for a
part-year resident taxpayer during the period the taxpayer
was a nonresident; nominee capital gains distributions; and
dividend income from an irrevocable federal grantor trust
that is required to file a PA-41, Fiduciary Income Tax Return. Do not include expenses incurred to realize dividend
income.

IMPORTANT: If a federal return is not required to be
filed, enter on this line the amount of dividend income
reported in Box 1 of all federal Forms 1099-DIV, Dividends
and Distributions, as well as any other federally taxable dividend income received from all sources including, but not
limited to, dividends from federal Schedule K-1s.

LINE 9
As a result of the federal Tax Cuts and Jobs Act of Dec. 22,
2017, additional dividend income may have to be included
for Pennsylvania personal income tax purposes on income
that was subject to the federal Repatriation Transition Tax
on the IRC Section 965 Transition Tax Statement for 2017.
Although the total deemed dividend of accumulated earnings and profits taxed for federal income tax purposes is not
includable in Pennsylvania taxable income, the amount of
actual earnings and profits cash payments received during
a tax year are taxable for Pennsylvania personal income tax
purposes. Refer to Informational Notice Corporation Taxes
and Personal Income Tax 2018-1: Tax Cuts and Jobs Act of
2017, available on department’s website for additional information regarding the repatriation of foreign income.
LINE 9a
Enter the amount of deemed dividend foreign earnings and
profits reported on Line 1 of the IRC Section 965 Transition
Tax Statement for calendar or fiscal year tax returns for
2017.
LINE 9b
Enter the amount of cash payments of foreign earnings and
profits received in prior tax years attributable to the amount
reported on Line 9a that were previously reported as dividend income for Pennsylvania personal income tax purposes.

LINE 7

IMPORTANT: If no amount of repatriated foreign
earnings was reported on the 2017 through 2022
PA-40 Schedule B as additional dividend income, enter a
zero on Line 9b. However, if cash payments were received
during 2017 through 2022 attributable to the amount
reported on Line 9a and no income was reported for foreign
repatriated income, the appropriate year’s PA-40 should be
amended to include the amount received in 2017 on Line 8
of the 2017 PA-40 Schedule B or the amount received in
2018 through 2022 on Line 9c of the respective year’s
PA-40 Schedule(s) B. The total amount included on the
amended returns should then be included on Line 9b.

Enter the total amount of any exempt-interest dividends reported in Box 11 of federal Form 1099-DIV, Dividends and
Distributions, that are included in Line 2a of the federal return.

LINE 9c
Enter the amount of cash received during the current tax
year that is attributable to the repatriation of foreign income
included on Line 9a.

CAUTION: Do not include the amount of tax-exempt
interest included in Line 2a of the federal return in this
amount.

CAUTION: Federal Form 1099-DIV, Dividend Income,
may not be prepared and sent by the payer for these
payments. Even if the 1099-DIV is not prepared, the cash
payments received must be reported as dividend income for
Pennsylvania personal income tax purposes.

LINE 5
Add the amounts on Lines 2, 3, and 4 and enter the result.

LINE 6
Subtract Line 5 from Line 1 and enter the result. The amount
reported for this line may be a negative number.

LINE 8
Enter any other adjustments that increase PA dividend income and provide a description of the amounts. Examples
include, but are not limited to: excessive salary paid to a
shareholder; nominee capital gains distributions; distributions from non-PA S corporations; and expenses incurred to
realize dividend income.
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LINE 10
Enter the amount of capital gains distributions included as
capital gains on federal Schedule D. If federal Schedule D
is not required, enter the amount of capital gains distributions reported directly on the federal return.
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LINE 11
Enter the amount of dividend 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.

LINE 12

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 12 (or the combined Line 12
amounts for taxpayer and spouse using the Married, Filing
Jointly filing status) on Line 3 of the PA-40, Personal Income
Tax Return.

Add Lines 6, 7, 8, 9c, 10, and 11 and enter the result.

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PA-40 B

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