Pennsylvania PA-41 Schedule A - Interest Income and Gambling and Lottery Winnings

PA-41 Schedule A - Interest Income and Gambling and Lottery Winnings
2023 PA-41 Schedule A - Interest Income and Gambling and Lottery Winnings (Form and Instructions) (PA-41 A)
IMPORTANT: FILL IN FORM MUST BE DOWNLOADED ONTO YOUR COMPUTER PRIOR TO COMPLETING

PA-41 SCHEDULE A

2304310051

Interest Income and Gambling
and Lottery Winnings
PA-41 A 03-23 (FI)
PA Department of Revenue

2023

OFFICIAL USE ONLY

START Name as shown on the PA-41

Federal EIN or Decedent’s SSN

➜
Caution: If the estate or trust’s total PA-taxable interest income is equal to the amount reported on the estate or trust’s federal Form
1041 and there are no amounts for Lines 2 through 14 (not including subtotal Lines 4 and 10) of Schedule A, the estate or trust must
report the interest income on Line 1 of the PA-41, Fiduciary Income Tax Return, but the estate or trust does not have to submit Schedule
A. If there are any amounts for any of the Lines 2 through 14 (not including subtotal Lines 4 and 10) of Schedule A,
the estate or trust must complete and submit Schedule A with the estate or trust’s PA-41, Fiduciary Income Tax Return.
1. Interest income reported on federal Form 1041 Line 1.

1. $

2. Total tax-exempt interest income.

2. $

3. Other addition adjustments. See instructions.
Description:

3. $

4. Add Lines 1, 2 and 3.

4. $

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.
Description:

8. $

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

9. $

10. Subtract Line 9 from Line 4.

10. $

11. Distribution from life insurance, annuity, endowment contracts, or charitable gift
annuities included in federal taxable income. See instructions.

11. $

12. Interest income from partnership(s), from PA Schedule(s) RK-1 or federal
Schedule(s) K-1.

12. $

13. Interest income from PA S corporation(s), from PA Schedule(s) RK-1 or federal
Schedule(s) K-1.

13. $

14. Gambling and lottery winnings. See instructions.

14. $

15. Total interest income and gambling and lottery winnings
Add Lines 10, 11, 12, 13 and 14. Enter on Line 1 of the PA-41.

15. $

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2023
Instructions for PA-41 Schedule A

Interest Income and Gambling and Lottery Winnings

PA-41 A IN 03-23

WHEN TO INCLUDE
If the estate or trust’s total PA-taxable interest income is
equal to the amount reported on the estate or trust’s federal
Form 1041 and there are no amounts for Lines 2 through 14
(not including subtotal Lines 4 and 10) of Schedule A, the
estate or trust must report the interest income on Line 1 of
the PA-41, Fiduciary Income Tax Return, but the estate or
trust does not have to submit Schedule A. If there are any
amounts for any of the Lines 2 through 14 (not including
subtotal Lines 4 and 10) of Schedule A, the estate or trust
must complete and submit Schedule A with the estate or
trust’s PA-41, Fiduciary Income Tax Return.

GENERAL INFORMATION
PURPOSE OF SCHEDULE
Use PA-41 Schedule A to report interest income and
gambling and lottery winnings of estates and trusts.

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 a FEIN should not use the decedent’s
Social Security number.

LINE INSTRUCTIONS
Please read the Line 1 Instructions on Page 21 of the
Instructions for Form PA-41 prior to completing this
schedule.

LINE 1
Enter the amount of interest income reported on Line 1 of
the estate or trust’s federal Form 1041. If there are no
amounts for Lines 2 through 14 (not including subtotal Lines
4 and 10) of PA-41 Schedule A, stop here. An estate or trust
must report the amount on Line 1 of the PA-41 form but the
estate or trust is not required to include a copy of PA-41
Schedule A with the PA-41.
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If the trust is not required to file a federal return, see the
instructions for Line 3.

LINE 2
If the estate or trust has any investments in tax-exempt
bonds from states or local instrumentalities that are
excluded from taxation for federal income tax purposes,
enter the total amount of total tax-exempt interest from all
state or local bonds. Include amounts from all states and
local instrumentalities including Pennsylvania.
CAUTION: Do not include exempt-interest dividends
in this amount. See the instructions for PA-41
Schedule B.

LINE 3
If the estate or trust has adjustments to federal taxable
interest income that increase the amount of interest income
reported for federal purposes, enter any other adjustments
for items that increase PA-taxable interest income and
provide a description of the amounts. If any expenses such
as amortization of bond premium, nominee interest, or
expenses incurred to realize interest income were deducted
against the income for federal income tax purposes, the
estate or trust must include all adjustments that reduce
federal income.
If the estate or trust is not required to file a federal return,
enter the amount of interest income reported to the trust in
Box 1 of all federal Forms 1099-INT, Interest Income, as well
as any other federally taxable interest income received by
the trust (such as interest from U.S. government obligations)
for federal grantor trusts or other trusts not required to file a
federal tax return.

LINE 4
Add the amounts on Lines 1, 2 and 3.

LINE 5
If the estate or trust has any investments in partnerships or
S corporations or any interest income from other estates or
trusts, the estate or trust must include the amount reported
for federal income tax purposes. Enter the total amount of
interest income included in the amount reported for Line 1
of federal Form 1041 from all federal Schedule(s) K-1.
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LINE 6
If the estate or trust has investments in tax-exempt bonds,
the amount of interest from direct obligations of the
commonwealth or its instrumentalities is tax exempt for
Pennsylvania purposes. Enter the amount of the estate or
trust’s tax-exempt interest from direct obligations 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 7
An estate or trust that has interest income from direct
obligations of the U.S. government must provide the amount
of that interest as it is also tax exempt for Pennsylvania
purposes. 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). See
the REV-1643 EX, Tax-Exempt Obligations for Pennsylvania
Personal Income Tax Purposes, for additional information.
Do not include amounts from U.S. obligations reported on
federal Schedule K-1(s).

LINE 8
Estates or trusts may need to record other adjustments to
federal interest income to account for differences in
Pennsylvania and federal tax laws and where there is no
specific line to record that difference. Enter any other
adjustments that decrease PA interest income and provide
a description of the amounts. Examples include: interest on
installment obligations that are included as gain on the sale
of property for PA purposes; forfeited interest penalty; and
amortization of bond premium. An example of the
description for interest income earned while a nonresident
would be “Forfeited Interest Penalty”. 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, 6, 7 and 8.

LINE 10
Subtract Line 9 from Line 4.
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LINE 11
DISTRIBUTIONS FROM LIFE INSURANCE, ANNUITY
OR ENDOWMENT CONTRACTS OR CHARITABLE
GIFT ANNUITIES INCLUDED IN FEDERAL TAXABLE
INCOME
Distributions from a commercial insurance or mutual
company annuity (code D also included with codes 1, 2, 3,
4, 7 or C) purchased as a retirement annuity, or any
distributions from a life insurance or endowment contract or
charitable gift annuity that are included in federal gross
taxable income are taxable as interest income for
Pennsylvania personal income tax purposes for an estate
or trust.

LINE 12
INTEREST INCOME FROM PARTNERSHIPS FROM
PA SCHEDULES RK-1
If the estate or trust is a partner in a partnership or a member
in an entity formed as a limited liability company that is
classified as a partnership for federal income tax purposes,
the estate or trust will receive a PA-20S/PA-65 Schedule RK1 showing its share of any interest income.
Enter the amount of interest income from partnerships.
Include the amounts reported from all PA Schedule(s) RK1, 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 Schedule A.
If the estate or trust realizes income from more than one
partnership, provide a statement showing the FEIN, name
and amount of income by each partnership.
Submit all PA-20S/PA-65 Schedules RK-1 to support the
amount reported on PA-41 Schedule A Line 12. Include a
copy of federal Form 1065 Schedule K-1 if a PA-20S/PA-65
Schedule RK-1 is not supplied by a partnership, or entity
formed as a limited liability company that is classified as a
partnership for federal income tax purposes. If the estate or
trust receives only a federal Form 1065 Schedule K-1, the
estate or trust must adjust and classify the income from the
federal Form 1065 Schedule K-1 according to Pennsylvania
rules. Refer to the PA Personal Income Tax Guide - Pass
Through Entities section, for additional information on the
adjustents required and the proper classification of income.

LINE 13
INTEREST INCOME FROM S CORPORATIONS FROM
PA SCHEDULES RK-1
If the estate or trust is an owner of an S corporation or entity
formed as a limited liability company that is classified as a
S corporation for federal income tax purposes, the estate or
trust will receive a PA-20S/PA-65 Schedule RK-1 showing
its share of any interest income.
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Enter the amount of interest income from PA S corporations.
Include the amounts reported from all PA Schedule(s) RK1, 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 Schedule A.

RESIDENT ESTATES AND TRUSTS

If the estate or trust realizes income from more than one PA
S corporation, provide a statement showing the FEIN, name,
and amount of income by each PA S corporation.

NONRESIDENT ESTATES AND TRUSTS

Submit all PA-20S/PA-65 Schedules RK-1 to support the
amount reported on PA-41 Schedule A Line 13. Include a
copy of federal Form 1120S Schedule K-1 if a PA-20S/PA65 Schedule RK-1 is not supplied by the S corporation or
entity formed as a limited liability company that is classified
as a S corporation for federal income tax purposes. If the
estate or trust receives only a federal Form 1120S Schedule
K-1, the estate or trust must obtain a PA-20S/PA-65
Schedule RK-1 from the entity. The department will only
permit the estate or trust to adjust and reclassify the income
from the federal Form 1120S Schedule K-1 according to
Pennsylvania rules in limited circumstances. Refer to the PA
Personal Income Tax Guide - Pass Through Entities section,
for additional information on the adjustments required and
the proper classification of income.

LINE 14
GAMBLING AND LOTTERY WINNINGS
Enter the amount of any taxable gambling and lottery
winnings of the estate or trust.
As a result of Act 84 of 2016, Pennsylvania-taxable
gambling and lottery winnings for estates and trusts includes
cash prize payments made by the Pennsylvania Lottery on
or after Jan. 1, 2016. Cash prize payments include all
annuity prize payments made by the Pennsylvania Lottery
in 2016. Cash prize payments also include any federal and
state withholding tax payments, sales taxes and any other
fees paid by the Pennsylvania Lottery on behalf of the
winner. Any PA personal income tax withholding on prize
payments made after July 12, 2016, should be reported on
Line 17 of the PA-41, Fiduciary Income Tax Return when
included in Box 15 of federal Form W-2G, Certain Gambling
Winnings.

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Report the amount of any gambling winnings from sources
inside and outside the commonwealth. Report the amount
of any lottery winnings from all lotteries other than noncash
prizes of the Pennsylvania Lottery.
Report the amount of any gambling winnings from
Pennsylvania sources or lottery winnings from sources
within Pennsylvania other than noncash prizes of the
Pennsylvania Lottery.
If an estate and related trust elect to file a combined tax
return for federal income tax purposes based upon an
election filed under IRC Section 645 of the Internal Revenue
Code of 1986, as amended, gambling and lottery winnings
from the estate must be reported separately from gambling
and lottery winnings of the trust. You must include a
statement which shows the amount of gambling and lottery
gross winnings for the estate along with the cost of tickets,
bets or wagering and the net winnings or losses separately
from those of the trust.
IMPORTANT: You may only combine net winnings
from an estate and trust when reporting the net
winnings of both on Line 14 of PA-41 Schedule A. Gambling
and lottery net losses from the estate may not offset
gambling and lottery net winnings from the trust and vice
versa. In addition, costs of tickets, bets and other wagering
paid for by the estate may not offset gambling and lottery
winnings of the trust and vice versa. If either the estate or
trust has net winnings and the other has a net loss, only
report the net winnings on Line 14 of PA-41 Schedule A. If
both have a net loss, report a zero (0) on Line 14 of PA-41
Schedule A.

LINE 15
TOTAL INTEREST INCOME AND GAMBLING
AND LOTTERY WINNINGS
Add Lines 10, 11, 12, 13 and 14. Enter on Line 1 of the PA41, Fiduciary Income Tax Return.

PA-41 A

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