Pennsylvania PA-41 Schedule N - PA-Source Income and Nonresident Tax Withheld

PA-41 Schedule N - PA-Source Income and Nonresident Tax Withheld
2023 PA-41 Schedule N - PA-Source Income and Nonresident Tax Withheld (PA-41 N)
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PA-41 SCHEDULE N

2310510058

PA-Source Income and
Nonresident Tax Withheld
START
HERE

PA-41 N 03-23 (FI)
PA Department of Revenue

2023

OFFICIAL USE ONLY

Name as shown on PA-41

Federal EIN or Decedent’s SSN

➜
Include the amount of PA-source income or loss reported: on PA-20S/PA-65 Schedules NRK-1 from all partnerships, PA S corporations, or entities
formed as limited liability companies classified as a partnership or PA S corporation for federal income tax purposes; on PA-41 Schedules NRK-1 from
estates and trusts; from sales of property located in PA; as rents and royalties income from property located in PA and/or income from patents
and copyrights utilized in PA; as gambling and lottery winnings from wagers placed in PA (except noncash prizes from the PA Lottery); and/or from
businesses or farms operated in PA.
Section I: Calculation of Distributed/Distributable PA-Source Income
1.

1. Net gambling and lottery winnings from PA sources. .......................................................................
2a. Net income or (loss) from the operation of a business or farm with PA activity as
reported on PA Schedule C or PA Schedule F. .................................................................................

2a.

2b. Apportionment percentage as calculated by PA Schedule NRH. .....................................................

2b.

2c. PA-source business or farm income or (loss). Multiply Line 2a times Line 2b and
enter here. Include a separate schedule or worksheet if more than one Schedule C
or Schedule F, or if Schedules C and F are both present for the estate or trust...............................

2c.

2d. PA-source business income or (loss) from partnerships, PA S corporations, or
entities formed as limited liability companies. Include a statement if more than one entity. .............

2d.

2e. Total PA-source income from business or farm. Add Lines 2c and 2d and enter here.
Do not enter an amount less than zero. ...........................................................................................

2e.

3a. Net gain or (loss) from the sale, exchange or disposition of property located in PA. .......................

3a.

3b. PA-source net gain or (loss) from the sale, exchange or dispostion of property from
partnerships, PA S corporations or entities formed as limited liability companies.
Include a statement if more than one entity. .....................................................................................

3b.

3c. Total PA-source gain from the sale, exchange or disposition of property. Add Lines 3a
and 3b and enter here. Do not enter an amount less than zero. ......................................................

3c.

4a. Net income or (loss) from rents and royalties from property located in PA and net income
or (loss) from patents and copyrights utilized in PA as reported on PA Schedule E. .......................

4a.

4b. PA-source net income or (loss) from rents, royalties, patents and copyrights from
partnerships, PA S corporations or entities formed as limited liability companies.
Include a statement if more than one entity. .....................................................................................

4b.

4c. Total PA-source income from rents, royalties, patents and copyrights. Add Lines 4a
and 4b and enter here. Do not enter an amount less than zero. ......................................................

4c.
5.

5. Estate or trust income from PA sources. Include a schedule if from more than one estate or trust.
6. Total PA-source income. Add the amounts from Lines 1, 2e, 3c, 4c and 5 and enter here. .............

6.

7. Enter the lesser of Line 3b or 14b from PA-41 Schedule DD. ..........................................................

7.

8. Total distributed/distributable PA-source income. Enter the lesser of Line 6 or Line 7 here. ...........

8.

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IMPORTANT: FILL IN FORM MUST BE DOWNLOADED ONTO YOUR COMPUTER PRIOR TO COMPLETING

PA-41 SCHEDULE N

2310610056

PA-Source Income and
Nonresident Tax Withheld
PA-41 N 03-23 (FI)
PA Department of Revenue

2023

OFFICIAL USE ONLY

START Name as shown on PA-41

Federal EIN or Decedent’s SSN

➜
Section II: Calculation of Nonresident Beneficiary Distributed/Distributable Income

Enter name of nonresident beneficiary

SSN/FEIN

A

B

C

Distributed/
Distributable
Income %

Total Distributed/
Distributable
PA-Source Income
(Section I, Line 8)

Distributed/Distributable Income
per Beneficiary
(Col A x Col B)

1.

1A.

1B.

1C.

2.

2A.

2B.

2C.

3.

3A.

3B.

3C.

4.

4A.

4B.

4C.

5.

5A.

5B.

5C.

6.

6A.

6B.

6C.

7.

7A.

7B.

7C.

8.

8A.

8B.

8C.

9. Nonresident beneficiary distributable income percentage totals from
other sheets. Include additional sheets/statements if necessary. ................ 9A.
10. Total nonresident beneficiaries' distributable income percentage.
10A.
Add Lines1A through 9A and enter the amount here. ..................................
Section III: Nonresident Withholding Calculation
1. Total distributed/distributable PA-source income from Section I, Line 8. ................................. 1.
2. Total nonresident beneficiaries' distributed/distributable
income percentage from Section II, Line 10A. ....................................................................... 2.
3. Total nonresident share of distributed/distributable income. Multiply Line 1 times Line 2. ....... 3.
4. PA nonresident tax withheld. Multiply Line 3 times 3.07 percent (0.0307). ............................. 4.
Section IV: Allocation of Nonresident Withholding Tax

Enter name of nonresident beneficiary

A
B
C
Nonresident
Total Nonresident
Beneficieary
Beneficiaries
Total Nonresident
Distributed/
Distributed/
Withholding Tax
Distributable
Distributable
(Section
III, Line 4)
Income %
Income Percentage
(Section
II,
Line
10A)
(from Section II)

SSN/FEIN

D
Nonresident
Withholding Tax
Amount per
Beneficiary
(Col A/Col B x Col C)

1.

1A.

1B.

1C.

1D.

2.

2A.

2B.

2C.

2D.

3.

3A.

3B.

3C.

3D.

4.

4A.

4B.

4C.

4D.

5.

5A.

5B.

5C.

5D.

6.

6A.

6B.

6C.

6D.

7.

7A.

7B.

7C.

7D.

8.

8A.

8B.

8C.

8D.

9. Nonresident beneficiary distributable income percentage totals from
other sheets. Include additional sheets/statements if necessary. ................ 9A.

9B.

9C.

9D.

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2023
Instructions for PA-41 Schedule N

PA-Source Income and Nonresident Tax Withheld

PA-41 N IN 03-23

GENERAL INFORMATION
PURPOSE OF SCHEDULE
Estates and trusts with nonresident beneficiaries use
Schedule N to determine the amount of total Pennsylvaniasource income, the Pennsylvania-source distributed or
distributable income to nonresident beneficiaries and the
amount of the tax withheld for nonresident beneficiaries on
their shares of distributed or distributable income.
WHO MUST USE
Estates and trusts with nonresident individuals or
nonresident estates who have distributed or distributable
Pennsylvania-source income must complete PA-41
Schedule N and any accompanying statements and submit
it with the PA-41, Fiduciary Income Tax Return. Estates and
trusts with beneficiaries that do not include nonresident
individuals, nonresident estates and trusts and/or that do not
have distributed or distributable Pennsylvania-source
income are not required to complete PA-41 Schedule N.

FORM INSTRUCTIONS
NAME
Enter the complete name of the estate or trust as shown on
the PA-41, Fiduciary Income Tax Return.
FEIN OR DECEDENT’S SSN
Enter the nine-digit federal employer identification number
(FEIN) of the estate or trust or the decedent’s Social
Security number as shown on the PA-41, Fiduciary Income
Tax Return.
An estate with an FEIN should not use the decedent’s
Social Security number (SSN).

LINE INSTRUCTIONS
SECTION I
LINE 1
Enter the amount of any gambling winnings from
Pennsylvania sources except noncash prizes from the
Pennsylvania Lottery

LINE 2a
NET INCOME OR (LOSS) FROM A BUSINESS
If the estate or trust operates a business located in
Pennsylvania, enter the amount business income or (loss)
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from PA Schedule C on Line 2a. See also the instructions
for Line 2c for Net Income or (Loss) From Multiple
Businesses and/or Farms.
NET INCOME OR (LOSS) FROM A FARM
If the estate or trust operates a farm located in
Pennsylvania, enter the amount of the farm income or (loss)
from PA Schedule F on Line 2a. See also the instructions
for Line 2c for Net Income or (Loss) From Multiple
Businesses and/or Farms.

LINE 2b
If the business or farm operates entirely within
Pennsylvania, enter 100 percent on Line 2b. If the business
or farm operates both within and outside Pennsylvania,
complete Schedule NRH and include the apportionment
percentage from Section II, Line 5 of Schedule NRH on Line
2b. See also the instructions for Line 2c for Net Income or
(Loss) From Multiple Businesses and/or Farms.

LINE 2c
SINGLE BUSINESS OR FARM OPERATION
Multiply Line 2a times Line 2b and enter the result on Line
2c.
NET INCOME OR (LOSS) FROM MULTIPLE
BUSINESSES AND/OR FARMS
If the estate or trust has multiple businesses or farms that it
operates, include a statement or separate schedule for each
business or farm showing the amounts for Lines 2a, 2b and
2c for each operation. Add the amounts for Line 2c from the
separate operations and enter the result on Line 2c.

LINE 2d
Include the Pennsylvania source income or (loss) reported
on Line 1 of any PA-20S/PA-65 Schedule NRK-1s from
partnerships, PA S corporations or entities formed as limited
liability companies classified as partnerships or PA S
corporations for federal income tax purposes. If reporting
income or (loss) from more than one PA-20S/PA-65
Schedule NRK-1, include a schedule showing the amounts
for each entity.

LINE 2e
Add the amounts on Lines 2c and 2d. If the result is a net
loss, enter zero. Otherwise enter the total Pennsylvaniasource income from businesses and/or farms. Losses
incurred by an estate or trust cannot be distributed.
PA-41 N
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LINE 3a

LINE 5

Include the amount of gain or (loss) from the sale,
exchange or disposition of property located in Pennsylvania
and reported on PA-41 Schedule D. Do not report the gain
or (loss) from the sale of intangible property such as stocks
and bonds held in trust in a Pennsylvania bank or trust
company. Report only the gains from sale of property used
in a business or rental property or other tangible property
located in Pennsylvania. If reporting the gain or (loss) from
the sale exchange or disposition of more than one property,
include a statement or schedule providing the description
of each property along with the amount of gain or loss for
each property.

Include the Pennsylvania source income from other estates
and trusts as reported on Line 4 of any PA-41 Schedules
NRK-1 issued to the estate or trust.

LINE 3b

LINE 7

Include the Pennsylvania source gain or (loss) reported on
Line 2 of any PA-20S/PA-65 Schedule NRK-1s from
partnerships, PA S corporations or entities formed as limited
liability companies classified as partnerships or PA S
corporations for federal income tax purposes. If reporting gain
or (loss) from more than one PA-20S/PA-65 Schedule NRK1, include a schedule showing the amounts for each entity.

Enter the lesser of the amounts of Line 3b or Line 14b from
PA-41 Schedule DD.

LINE 3c
Add the amounts on Lines 3a and 3b. If the result is a net loss,
enter zero. Otherwise enter the total Pennsylvania-source gain
from the sale, exchange or disposition of property. Losses
incurred by an estate or trust cannot be distributed.

LINE 4a
Include the amount of the net income or (loss) from rents,
royalties, patents and copyrights for property located in
Pennsylvania as reported on PA Schedule E. All properties
reported on PA Schedule E must include a property address
and location otherwise the property will be assumed to be
Pennsylvania property.

LINE 4b
Include the Pennsylvania source income or (loss) reported
on Line 3 of any PA-20S/PA-65 Schedule NRK-1s from
partnerships, PA S corporations or entities formed as limited
liability companies classified as partnerships or PA S
corporations for federal income tax purposes. If reporting
income or (loss) from more than one PA-20S/PA-65
Schedule NRK-1, include a schedule showing the amounts
for each entity.

LINE 6
Add the amounts on Lines 1, 2e, 3c, 4c and 5 and enter the
result here. This is the total Pennsylvania-source income
earned by the trust. This is the total amount of income the
estate or trust would report if it were a nonresident estate or
trust on Line 7 of the PA-41, Fiduciary Income Tax Return.
This amount should also agree with Line 1b on PA-41
Schedule DD.

LINE 8
Enter the lesser of Line 6 or Line 7. This is the amount of
estate or trust income that is Pennsylvania-source income
and is deemed to be distributed or distributable to its
nonresident beneficiaries.

SECTION II
LINES 1 THROUGH 8
Enter the name and SSN of any nonresident individual or
the name and FEIN of any nonresident estate or trust
receiving a distribution from the estate or trust. Do not enter
the information for any other type of nonresident beneficiary.

LINES 1A THROUGH 8A
Enter the year-end distributed or distributable income
percentage of each nonresident beneficiary as necessary.
The beneficiary’s year-end distribution percentage is either
obtained from the governing instrument or by taking the
actual cash or property distributions made to the beneficiary
and any amounts credited or payable or required to be
currently distributed to the beneficiary and dividing that sum
by the amount on Line 13a of PA-41 Schedule DD.

LINES 1B THROUGH 8B
Enter the distributed or distributable Pennsylvania-source
income amount from PA-41 Schedule N, Section I, Line 8
on each line as necessary.

LINE 4c

LINES 1C THROUGH 8C

Add the amounts on Lines 4a and 4b. If the result is a net
loss, enter zero. Otherwise, enter the total Pennsylvaniasource income from rents, royalties, patents and copyrights.
Losses incurred by an estate or trust cannot be distributed.

Multiply the distributed or distributable income percentage
in Column A times the Pennsylvania-source income amount
in Column B for each beneficiary and enter the amount on
each line as necessary. The amount shown on each line

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must match to the amount reported on Line 1 of the PA-41
Schedule NRK-1 prepared for each nonresident individual
or nonresident estate or trust beneficiary.

LINE 9A
If there are more than eight nonresident individual and/or
nonresident estates or trusts, include a statement or
additional PA-41 Schedules N with Section II completed and
add the amount of the nonresident beneficiaries’ distributed
or distributable income percentages from those schedules
and enter the total on this line for the first PA-41 Schedule
N only.

LINE 10A
Add the percentages on Lines 1A through 9A and enter the
total percentage here and on PA-41 Schedule N, Section III,
Line 2 and PA-41 Schedule N, Section IV, Lines 1B through
9B. This amount should not be greater than 100%.

SECTION III
LINE 1
Enter the total distributed or distributable Pennsylvania-source
income amount from PA-41 Schedule N, Section I, Line 8.

LINE 2
Enter the total nonresident beneficiaries’ distributable
Pennsylvania-source income percentage from PA-41
Schedule N, Section II, Line 10A.

LINE 3
Multiply the total distributed or distributable Pennsylvaniasource income from Line 1 times the total nonresident
beneficiaries’ distributed or distributable income percentage
from Line 2 and enter the result here.

LINE 4
Multiply the total nonresidents’ share of distributed or
distributable Pennsylvania-source income from Line 3 times
3.07 percent (0.0307) and enter the result here and on Line
11 of the PA-41, Fiduciary Income Tax Return and on PA-41
Schedule N, Section IV, Lines 1C through 9C.

receiving a distribution from the estate or trust. Do not enter
the information for any other type of nonresident beneficiary.

LINES 1A THROUGH 8A
Enter the distributed or distributable income percentage of
each nonresident beneficiary as necessary from PA-41
Schedule N, Section II, Lines 1A through 8A.

LINES 1B THROUGH 9B
Enter the total nonresident beneficiaries’ distributed or
distributable Pennsylvania-source income percentage
amount from PA-41 Schedule N, Section II, Line 10a on
each line as necessary.

LINES 1C THROUGH 9C
Enter the amount of Pennsylvania nonresident tax
withheld from PA-41 Schedule N, Section III, Line 4 on
each line as necessary.

LINES 1D THROUGH 8D
Divide the distributed or distributable income percentage for
each nonresident beneficiary in Column A by the total
nonresident beneficiaries’ distributed or distributable income
percentage in Column B and multiply the result by the
Pennsylvania nonresident tax withheld in Column C and
enter the amount here. The amount shown on each line
must match to the amount reported on Line 2 of the PA-41
Schedule NRK-1 prepared for each nonresident individual
or nonresident estate or trust beneficiary.
Divide the percentages as decimals (for example, 50%
equals 0.50) for the first part of this equation.

LINES 9A THROUGH 9D
If there are more than eight nonresident individuals and/or
nonresident estates or trusts, include a statement or
additional PA-41 Schedules N with Section IV completed
and add the amount of the nonresident beneficiaries
distributed or distributable income percentage and the
amount of nonresident withholding tax amount from those
schedules and enter the total on this line for Column A and
Column D, respectively, for the first PA-41 Schedule N only.

If $1 or less and the amount on Line 10 of the PA-41 is zero
or if the amount is $1 or less and there is more than one
nonresident beneficiary and Line 10 of the PA-41 is zero,
enter zero on Line 11 of the PA-41 and do not complete
Section IV of this schedule.

SECTION IV
LINES 1 THROUGH 8
Enter the name and SSN of any nonresident individual or
the name and FEIN of any nonresident estate or trust
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