Pennsylvania PA-41 Schedule B - Dividend and Capital Gains Distributions Income

PA-41 Schedule B - Dividend and Capital Gains Distributions Income
2023 PA-41 Schedule B - Dividend and Capital Gains Distributions Income (Form and Instructions) (PA-41 B)
IMPORTANT: FILL IN FORM MUST BE DOWNLOADED ONTO YOUR COMPUTER PRIOR TO COMPLETING

PA-41 SCHEDULE B

2304710052

Dividend and Capital Gains
Distributions Income
PA-41 B 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 dividend 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 12 (not including subtotal Line 6) of Schedule B, the estate or trust must report the
dividend income on Line 2 of the PA-41, Fiduciary Income Tax Return, but the estate or trust does not have to submit Schedule B. If
there are any amounts for any of the Lines 2 through 12 (not including subtotal Line 6) of Schedule B, the estate or trust must complete
and submit Schedule B with the estate or trust’s PA-41, Fiduciary Income Tax Return.
1. Dividend income reported on federal Form 1041 Line 2a.

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.
Description:

4. $

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

5. $

6. Subtract Line 5 from Line 1.

6. $

7. Total exempt-interest dividends. See instructions.

7. $

8. Other addition adjustments. See instructions.
Description:

8. $

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.

10. $

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

11. $

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

12. $

13. Total dividend income
Add Lines 6, 7, 8, 9c, 10, 11 and 12. Enter on Line 2 of the PA-41.

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13. $

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2023
Instructions for PA-41 Schedule B

Dividend and Capital Gains Distributions Income

PA-41 B IN 03-23

WHEN TO INCLUDE

LINE 2

If the estate or trust’s total PA-taxable dividend and capital
gains distributions 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 12 (not including subtotal Line
6) of Schedule B, the estate or trust must report the
dividends and capital gains distributions income on Line 2
of the PA-41, Fiduciary Income Tax Return, but the estate
or trust does not have to submit Schedule B. If there are any
amounts for any of the Lines 2 through 12 (not including
subtotal Line 6) of Schedule B, the estate or trust must
complete and submit Schedule B with the estate or trust’s
PA-41, Fiduciary Income Tax Return.

If the estate or trust has any investments in partnerships or
S corporations or any dividend 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
dividend income included in the amount reported for Line 2
of federal Form 1041 from all federal Schedule(s) K-1.

GENERAL INFORMATION
PURPOSE OF SCHEDULE
Use PA-41 Schedule B to report dividend and capital gains
distributions income of estates and trusts.

FORM INFORMATION
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 2 Instructions on Pages 22 and 23
of the Instructions for Form PA-41 prior to completing
this schedule.

LINE 1

LINE 3
If the estate or trust has investments in funds which have
investments where some of the income is tax exempt, the
exempt-interest dividends associated with Pennsylvania or
U.S. government obligations are not taxable for
Pennsylvania purposes. Enter the total amount of any
exempt-interest 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
Estates or trusts may need to record other adjustments to
federal dividend 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 dividend income and provide
a description of the amounts. An example would include
dividend income for a nominee taxpayer recorded on the
1099 as dividend income of the estate or trust. Do not
include expenses incurred to realize dividend income.

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

LINE 6
Subtract Line 5 from Line 1.

LINE 7

Enter the amount of dividend income reported on Line 2a
of the estate or trust’s federal Form 1041. If there are no
amounts for Lines 2 through 12 (not including subtotal Line
6) of PA Schedule B, stop here. An estate or trust must
report the amount on Line 2 of the PA-41 form but the estate
or trust is not required to include a copy of the PA-41
Schedule B with the PA-41.

TOTAL EXEMPT-INTEREST DIVIDENDS
Enter the total amount of exempt-interest dividends (from
Pennsylvania and non-Pennsylvania sources) from Box 11
of federal Form 1099-DIV, Dividends and Distributions.

If the trust is not required to file a federal return, see the
instructions for Line 8.

If the estate or trust has adjustments to federal-taxable
dividend income that increase the amount of dividend

www.revenue.pa.gov
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LINE 8

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income reported for federal purposes due to differences
between Pennsylvania and federal tax laws, enter any other
adjustments for items that increase PA-taxable dividend
income and provide a description of the amounts. Examples
include: distributions from non-PA S corporations and
expenses incurred to realize dividend 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.
If the estate or trust is not required to file a federal return,
enter the amount of dividend income reported to the trust in
Box 1 of all federal Forms 1099-DIV, Dividend and
Distributions, as well as any other taxable dividend income
received by the trust for federal grantor trusts or other trusts
not required to file a federal tax return.

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.
IMPORTANT: If no amount of repatriated foreign
earnings was reported on the 2017 through 2022 PA41 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-41 should be amended
to include the amount received in 2017 on Line 8 of the 2017
PA-41 Schedule B or the amount received in 2018 through
2022 on Line 9c of the respective year's PA-41 Schedule B.
The amount included on the amended return(s) should then
be included on Line 9b.
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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: 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 10
For Pennsylvania purposes, capital gains distributions are
taxable as dividend income not as capital gains as for federal
purposes. Enter the amount of capital gains distributions
included as capital gains on federal Schedule D.
Do not report capital gains distributions on PA-41
Schedule D.

LINE 11
DIVIDEND INCOME FROM PARTNERSHIPS FROM
PA SCHEDULES RK-1
If the estate or trust is an owner in a partnership or entity
formed as a limited liability company that is classified as a
partnership for federal income tax purposes, it will receive a
PA-20S/PA-65 Schedule RK-1 showing its share of any
dividend income.
Enter the amount of dividend 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.
If the estate or trust realizes income from more than one
partnership, provide a statement showing the FEIN, name,
and amount of distributable/distributed income by each
partnership.
Submit all PA-20S/PA-65 Schedules RK-1 to support the
amount reported on PA-41 Schedule B Line 11. 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, it
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
adjustments required and the proper classification of
income.
www.revenue.pa.gov
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LINE 12
DIVIDEND INCOME FROM PA S CORPORATIONS
FROM PA SCHEDULES RK-1
If the estate or trust is an owner in a PA S corporation or
entity formed as a limited liability company that is classified
as a PA S corporation for federal income tax purposes, it will
receive a PA-20S/PA-65 Schedule RK-1 showing its share
of any dividend income.
Enter the amount of dividend income from PA S
corporations. Include the amounts reported from all PA
Schedule(s) RK-1, or federal Schedule(s) K-1 if an RK-1 is
not provided.
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.
Submit all PA-20S/PA-65 Schedules RK-1 to support the
amount reported on PA-41 Schedule B Line 12. Include a
copy of the federal Form 1120S Schedule K-1 if a PA-

www.revenue.pa.gov
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20S/PA-65 Schedule RK-1 is not supplied by the PA S
corporation or entity formed as a limited liability company
that is classified as a PA 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 federal Form 1120S Schedule K1 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 13
TOTAL DIVIDEND INCOME
Add Lines 6, 7, 8, 9c, 10, 11 and 12 on the PA-41 Schedule
B. Enter the amount here and on the PA-41, Fiduciary
Income Tax Return, Line 2.

PA-41 B

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