Pennsylvania PA-41 Schedule NRK-1 - Nonresident Schedule of Shareholder/Partner/Beneficiary Pass Through Income, Loss, and Credits

PA-41 Schedule NRK-1 - Nonresident Schedule of Shareholder/Partner/Beneficiary Pass Through Income, Loss, and Credits
2023 PA-41 Schedule NRK-1 - Nonresident Schedule of Shareholder/Partner/Beneficiary Pass Through Income, Loss and Credits (Form and Instructions) (PA-
IMPORTANT: FILL IN FORM MUST BE DOWNLOADED ONTO YOUR COMPUTER PRIOR TO COMPLETING

PA-41 SCHEDULE NRK-1

2304610054

Nonresident Schedule of Beneficiary Pass
Through Income and Credits
PA-41 NRK-1 (EX) MOD 03-23 (FI)
PA Department of Revenue

START
➜

2023

Suffix

Last Name

First Name

MI

SSN
Phone Number
Name of Beneficiary Receiving NRK-1 (if other than an individual)
FEIN
First Line of Address

Amended Schedule

Final

Beneficiary:
Individual

SECTION
I

Second Line of Address

Beneficiary’s year-end distribution: ________%

PA S Corp.
All Other Corp.

City or Post Office

State

ZIP Code

Estate/Trust
Partnership
LLC
Exempt

Name of Entity Issuing NRK-1
City or Post Office

State

ZIP Code

FEIN
Short Year

Fiscal Year

MM/DD/YY

Begin

MM/DD/YY

End

SECTION
II

NOTE: Amounts from this schedule must be reported on the appropriate PA Tax Return.

Enter whole dollars only

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1 Income of/from Estates or Trusts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2 PA Nonresident Tax Withheld . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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3 Total Other Credits. Submit statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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2023
Instructions for PA-41 Schedule NRK-1
PA-41 NRK-1 IN (EX) MOD 03-23

Nonresident Schedule of Shareholder/Partner/Beneficiary
Pass Through Income, Loss and Credits

GENERAL INFORMATION
PURPOSE OF SCHEDULE
Estates and trusts use PA-41 Schedule NRK-1 to report the
Pennsylvania-source income of estates and trusts and PA
nonresident tax withheld to each nonresident individual or
nonresident estate and trust beneficiary. A PA-41 Schedule
NRK-1 is also used to report the Pennsylvania-source
income of the estate or trust for each resident or nonresident
partnership, PA S corporation or entity formed as a limited
liability company classified as a partnership or PA S
corporation for federal income tax purposes.
Nonresident estate and trust beneficiaries are subject to
Pennsylvania personal income tax on their shares of the
estate or trust’s distributed or distributable Pennsylvaniasource income. Resident estate and trust beneficiaries are
subject to tax on their shares of the estate or trust’s distributed
or distributable income, regardless of income source.
NONRESIDENT BENEFICIARY RESIDENCY STATUS
The fiduciary of an estate or trust must determine (through
reasonable means) the residency status of each individual
and/or estate or trust beneficiary. A fiduciary of an estate or
trust that fails to keep an accurate list of beneficiaries may
be subject to the tax, penalty and interest of any beneficiary
who was provided a PA-41 Schedule NRK-1 when a PA-41
Schedule RK-1 should have been provided.
PA TAX WITHHELD FOR
NONRESIDENT BENEFICIARIES
Each nonresident Individual or nonresident estate or trust
must also have PA income tax withheld at a rate of 3.07
percent (0.0307) on their shares of the estate or trust’s
distributed or distributable Pennsylvania-source income.
Complete PA-41 Schedule N to determine the amount of
withholding for each nonresident beneficiary subject to
withholding.
WHO SHOULD RECEIVE A PA-41 SCHEDULE NRK-1
A PA-41 Schedule NRK-1 must be prepared and provided
to every nonresident beneficiary who is an individual. A copy
of the PA-41 Schedule NRK-1 for each nonresident
beneficiary who is an individual must accompany the
estate’s/trust’s PA-41, Fiduciary Income Tax Return.
The estate or trust must prepare and provide both PA-41
Schedules RK-1 and NRK-1 to any beneficiary that was
a/an:
• Individual who was a part-year Pennsylvania resident;
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• Estate or trust;
• PA S corporation;
• Partnership; or
• Entity formed as a limited liability company classified as
a partnership or PA S corporation for federal income tax
purposes.
Both schedules for each such beneficiary must also be
submitted with the PA-41, Fiduciary Income Tax Return.
IMPORTANT: The department does not accept federal
Form 1041 Schedule K-1 because the schedule does
not properly reflect the classified Pennsylvania-taxable
income amounts.
PA-41 Schedules RK-1 submitted to nonresident and entity
beneficiaries (including nonresident estates and trusts)
should reflect the taxable income to Pennsylvania as if the
nonresident beneficiary was a Pennsylvania resident even
if the estate or trust preparing them is a nonresident.
PA-41 Schedules NRK-1 issued to nonresident beneficiaries
should reflect just the Pennsylvania-source income taxable
to those beneficiaries. Additionally, only PA-41 Schedules
NRK-1 issued to nonresident individuals and nonresident
estates or trusts should reflect PA tax withheld for
nonresident beneficiaries.
HOW TO AMEND PA-41 SCHEDULE NRK-1
Where an amendment to the PA-41, Fiduciary Income Tax
Return, results in a need to amend the PA-41 Schedule NRK1, an amended PA-41 Schedule NRK-1 must be forwarded
to the PA Department of Revenue with the amended tax
return, and a copy must be provided to each beneficiary.
An amended PA-41, Fiduciary Income Tax Return and an
amended PA-41 Schedule NRK-1 for each beneficiary must
also be filed to correct any error on or reflect any change to
the PA-41, Fiduciary Income Tax Return, whether or not an
amended federal Form 1041 was filed for that year.
To amend an original PA-41 Schedule NRK-1, use a blank
schedule for the tax year to be amended and fill in the
“Amended Schedule” oval at the top of the schedule. Do not
send a copy of the original schedule.
Complete the schedule by entering the corrected information
and submit it with the amended PA-41, Fiduciary Income Tax
Return. See “Where To File” in the PA-41 instructions.
PA-41 NRK-1
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COMPLETING PA-41 SCHEDULE NRK-1

SECTION I

FOREIGN ADDRESS INSTRUCTIONS
(OTHER THAN CANADA)
If the estate or trust is located outside the U.S., it is important
to write the foreign address on the PA-41 Schedule NRK-1
according to U.S. Postal Service standards.

GENERAL INFORMATION

Failure to use these standards may delay any refunds
requested or correspondence necessary to complete the
processing of the return.
To comply with foreign address standards, use the following
rules when completing the address portion of the PA-41
Schedule NRK-1.
• Eliminate apostrophes, commas, periods and hyphens.
• Use all capital letters to write all lines.
• Write the name of the estate or trust in the space
provided.
• Write the name and title of the fiduciary in the space
provided.
• Write the address in the space provided, including street
and building name and number, apartment or suite
numbers, city name and city or provincial codes.
• Write only the name of the country in the space provided
for the city or post office.
• Write OC in the entry space for state to indicate out-ofcountry.
• Leave the ZIP code spaces on the PA-41 Schedule
NRK-1 blank.
Providing the address in this format will better ensure that
the department is able to send a refund on a timely basis or
contact the estate or trust if additional information is required.
Below is an example of a properly completed foreign address.
Foreign Address Example.
DIETRIC-FISCHER INGE TRUST
PATRIK FISCHER TTEE
WEIMARER STR 7 5300 BONN 1
GERMANY OC
CANADA ONLY FOREIGN ADDRESS INSTRUCTIONS
The same rules apply as for other foreign address
instructions. However, when the Canada address contains
a postal zone and two-character abbreviation for provinces
and territories, there are special spacing rules for the
address line for the PA-41 Schedule RK-1. On mail to
Canada, there must be two spaces between the province
abbreviation and the postal code. Below is an example of a
properly completed Canada foreign address.
SAUNDERS HELEN ESTATE OF
JANET SAUNDERS EXECUTRIX
9 BOW ST OTTAWA ON K1A 0B1 CANADA OC
If the estate or trust’s address does not fit in the available
spaces on the PA-41 Schedule NRK-1 using the above
formats, please include a separate statement with the return
showing the complete address.
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PA-41 NRK-1
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SSN
Enter the nine-digit Social Security number (SSN) if the
beneficiary of the estate or trust is an individual receiving
the PA-41 NRK-1.
LAST NAME, SUFFIX, FIRST NAME, MIDDLE INITIAL
If the beneficiary of the estate or trust is an individual, enter
the last name; suffix such as Jr., Sr., etc; first name and
middle initial of the individual beneficiary who is receiving
the PA-41 Schedule NRK-1.
SPOUSE’S SSN
Enter the nine-digit SSN of the spouse of the beneficiary (if
jointly held) receiving the PA-41 Schedule NRK-1.
FEIN
Enter the nine-digit federal employer identification number
(FEIN) of the entity beneficiary receiving the PA-41
Schedule NRK-1.
NAME OF OWNER RECEIVING NRK-1
(IF OTHER THAN AN INDIVIDUAL)
If the beneficiary of the estate or trust is an estate, trust
partnership, PA S corporation, entity formed as a limited
liability company classified as a partnership or PA S
corporation for federal income tax purposes, enter the FEIN
and name of the entity receiving the PA-41 Schedule NRK-1.
If the PA-Schedule NRK-1 is being issued to an individual
beneficiary, leave this field blank.
FIRST LINE OF ADDRESS
Enter the street address of the individual or entity beneficiary
receiving the PA-41 Schedule NRK-1. If the address has an
apartment number, suite or RR number, enter it after the
street address.
The U.S. Postal Service preference is to put the actual
delivery address on the line immediately above the city, state
and ZIP Code.
NOTE: If the street address along with the apartment
number, suite or RR number does not fit on the first
line of address, then enter the street address on the second
line of address and the apartment number, suite or RR
number on the first line of address.
SECOND LINE OF ADDRESS
Enter the post office box, if appropriate, of the individual or
entity beneficiary entity receiving the PA-41 Schedule NRK1. If there is no post office box, leave the second line of the
address blank. Eliminate all punctuation such as
apostrophes, commas, periods and hyphens.
For a foreign address, enter the city or municipal
designation. See the Foreign Address Example.
For a Canadian address, enter the city and postal delivery
zone number. See the Canada Address Example.
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IMPORTANT: If the address has only a post office box,
enter on the first line of address.
CITY, STATE AND ZIP CODE
Enter the appropriate information of the individual or entity
beneficiary receiving the PA-41 Schedule NRK-1 in each
box. Eliminate all punctuation such as apostrophes,
commas, periods and hyphens.
NAME OF ESTATE/TRUST ISSUING NRK-1
Enter the name of the estate or trust issuing the PA-41
Schedule NRK-1.
CITY, STATE AND ZIP CODE
Enter the appropriate information in each box of the
estate or trust issuing the PA-41 Schedule NRK-1.
Eliminate all punctuation such as apostrophes, commas,
periods and hyphens.
FEIN
Enter the nine-digit federal employer identification
number (FEIN) of the estate or trust issuing the PA-41
Schedule NRK-1.
AMENDED SCHEDULE
If the estate or trust is filing an amended PA-41, Fiduciary
Tax Return, and the amount of income distributed to a
nonresident beneficiary changes, fill in the amended
schedule oval.

A short-year return is required for the following reasons:
• Changes in the annual accounting period. For example,
the entity changes from a fiscal to a calendar filer;
• An entity is in existence during only part of the tax year.
For example, the estate or trust tax year is the initial year.
See “How to File a Short-Year Return” in the PA-41,
Fiduciary Income Tax Return instructions.

LINE INSTRUCTIONS
SECTION II
LINE 1
SHAREHOLDER/PARTNER/
BENEFICIARY DISTRIBUTIVE SHARE
OF PENNSYLVANIA-SOURCE INCOME (LOSS)
If the beneficiary is an individual or estate or trust, enter the
beneficiary’s share of income from Section 2 of PA-41
Schedule N for the beneficiary named on this PA-41
Schedule NRK-1. If the beneficiary is an entity other than an
estate or trust, use the following formula to determine the
amount of Pennsylvania-source income for each
nonresident beneficiary:

FINAL
If this is the final year of distributions to the beneficiary from
the estate or trust, fill in the final oval.

A x B = Pennsylvania-Source Income of Nonresident
Beneficiary Reported on Schedule NRK-1 Line 1.

BENEFICIARY’S YEAR-END DISTRIBUTION
Enter the beneficiary’s percentage of year-end distributions
from the estate or trust for the ratio of the beneficiary’s
taxable distribution as reported on PA-41 Schedule NRK-1,
Line 4 to the total distribution as reported on PA-41,
Fiduciary Income Tax Return, Line 8.

A = Total distributed or distributable Pennsylvania-source
income from Section 1, Line 8 of PA-41 Schedule N.
If Schedule N is not required, the lesser of Line 3b or
Line 14b of PA-41 Schedule DD.

Valid values for input on this line include the values of
“00000” to “10000”. The decimal point is implied after the
third character from the left. For example:
• To indicate 100%, enter the value as “10000”;
• To indicate 33.33%, enter the value as “03333”; or
• To indicate 25%, enter the value as “02500”.
OWNER
Fill in the oval that designates what type of beneficiary
received the PA-41 NRK-1. Fill in one oval only.
FISCAL YEAR
If the estate or trust does not file on a calendar-year basis,
fill in the oval.
Enter month, day and year (MMDDYY) when the fiscal year
begins and ends.
SHORT YEAR
A short year is an accounting period shorter than one year
(and not a 52-53 week taxable year).
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Where:

B = Beneficiary’s year-end distribution percentage. The
beneficiary’s year-end distribution percentage is
obtained 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.
Calculate the beneficiary’s year-end distribution
percentage as if the beneficiary was a resident
taxpayer.
CAUTION: When calculating beneficiary’s year-end
distribution percentage, do not take into account:
• Amounts properly paid out of corpus as a gift or bequest
of a specific amount of money;
• Amounts required to have been distributed in any prior
taxable year; or
• The market value of property distributed in kind as a gift
or bequest of the specific property.
PA-41 NRK-1
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SECTION III

LINE 3

LINE 2

If the trust is a Qualified Subchapter S Trust (QSST) that
received an Educational Improvement Tax Credit (EITC)
and/or an Opportunity Scholarship Tax Credit (OSTC) and
the trust did not utilize all of the credit(s), enter the unused
EITC and/or OSTC to be passed through to the beneficiary
of the QSST. A separate statement must also be provided to
the beneficiary that identifies the type(s) and amount(s) of
the credit(s) included on Line 3 of PA-41 Schedule NRK-1.
CAUTION: No other types of restricted tax credits are
permitted to be passed through to (a) beneficiary(ies)
and no other types of trusts are permitted to pass restricted
tax credits through to their beneficiary(ies).

If the beneficiary is an individual or estate or trust, enter the
beneficiary’s share of nonresident tax withheld from Section
4 of PA-41 Schedule N for the beneficiary named on this PA41 Schedule NRK-1.
If the beneficiary is an entity other than an estate or trust,
do not complete this line.
If nonresident tax was withheld, include this amount
on Line 17 of the PA-40, Individual Income Tax Return,
for a beneficiary that is an individual or include the amount
on Line 14 of the PA-41, Fiduciary Income Tax Return, for a
beneficiary that is an estate or trust.

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