Pennsylvania PA-41 Schedule DD - Distribution Deductions

PA-41 Schedule DD - Distribution Deductions
2023 PA-41 Schedule DD - Distribution Deductions (Form and Instructions) (PA-41 DD)
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PA-41 SCHEDULE DD

2304410059

Distribution Deductions

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

2023

Name as shown on PA-41

OFFICIAL USE ONLY

Federal EIN or Decedent’s SSN

➜
Column A
1. Total income from Line 7, PA-41. (See PA-41 Schedule DD instructions for nonresident
estates or trusts). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Column B

1a

1b

or the governing instrument. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2a

2b

3. Taxable income available for distribution. Subtract Line 2 from Line 1. . . . . . . . . . . . . . . . . . . . . . .

3a

3b

4. Total distributable/distributed nontaxable income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4a

5. All income available for distribution. Add Lines 3a and 4a. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5a

6. Line 3a ÷ Line 5a. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6a

2. Income included in Line 1 above, but not distributable/distributed under state law

%

7. Line 3b ÷ Line 5a. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7b

8. Total required to be distributed. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8a

9. See Instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9a

%

10. Total distributable currently. Subtract Line 9a from Line 8a. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10a
11. Total cash distributed. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11a
12. Total property distributed. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12a
13. Total distributable/distributed. Add Lines 10a, 11a and 12a. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13a
14a. Line 6a X Line 13a. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14a
14b. Line 7b X Line 13a. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

14b

15. Deduction for distribution. See PA-41 Schedule DD instructions. . . . . . . . . . . . . . . . . . . . . . . . . . .

15

16. Charitable distribution deduction. See PA-41 Schedule DD instructions. . . . . . . . . . . . . . . . . . . . . .

16

17. Nonresident estate or trust with resident beneficiary adjustment. See PA-41 Schedule DD instructions.

17

18. Total deduction from PA Schedule DD. Add Lines 15, 16 and 17. Enter here and on Line 8 of PA-41.

18

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2023
Instructions for PA-41 Schedule DD

Distribution Deductions

PA-41 DD IN 03-23

GENERAL INFORMATION

LINE INSTRUCTIONS

PURPOSE OF SCHEDULE
PA-41 Schedule DD is used to provide information regarding
the distributed/distributable income to beneficiaries. If the
estate or trust has no distributions or is not distributing its
income, the estate or trust is not required to complete PA41 Schedule DD.

LINE 1

An estate or trust must report its income in certain
circumstances as if it were a both a resident estate or trust
and a nonresident estate or trust.
Column A is used for the calculation as a resident estate or
trust including all income from all sources.

WHEN TO COMPLETE COLUMNS A AND B
Column A is used to provide information regarding
distributions to the estate or trust beneficiaries and must be
completed in all circumstances except whenever the estate
or trust:
• Is a nonresident estate or trust with no income from
Pennsylvania sources and all beneficiaries are
nonresident individuals; or
• The estate is a bankruptcy estate.

Column A is also used to calculate the income for a
nonresident estate or trust as if it were a resident estate or
trust when the estate or trust has resident beneficiaries.

Column B is used to provide information to certain types of
beneficiaries and may not be required to be completed in all
circumstances. However, Column B must be completed
whenever the estate or trust:

Column B is for the calculation as a nonresident estate or
trust including income only from Pennsylvania sources.

• Is a nonresident estate or trust with income from
Pennsylvania sources;

Column B is also used to calculate the income for a resident
estate or trust when an estate or trust has other estate or
trust or partnership, limited liability company or PA S
corporation beneficiaries.

• Is a nonresident estate or trust with one or more
Pennsylvania resident beneficiaries;

This is necessary in order to provide information concerning
income that may be taxable to Pennsylvania and forshowing
income allocable to both resident and nonresident
beneficiaries.

• Is a resident estate or trust with one or more estate or
trust, partnership, limited liability company, and/or PA S
corporation beneficiaries.

CAUTION: A taxable bankruptcy estate cannot distribute
any of its income to beneficiaries. Do not complete PA41 Schedule DD for a taxable bankruptcy estate.

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.
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• Is a resident estate or trust with one or more nonresident
beneficiaries; or

If the estate or trust is a resident estate or trust and all
the beneficiaries are individuals who are residents of
Pennsylvania, only Column A must be completed.
TOTAL INCOME FROM LINE 7 OF THE PA-41
FIDUCIARY INCOME TAX RETURN
COLUMN A – LINE 1A
Enter in Column A, Line 1a the income reported as if this
were a resident estate or trust.
RESIDENT ESTATES AND TRUSTS
If this is a resident estate or trust, enter the amount from the
PA-41, Fiduciary Income Tax Return, Line 7.
NONRESIDENT ESTATES AND TRUSTS WITH
RESIDENT BENEFICIARIES
If this is a nonresident estate or trust, a separate calculation
of the income must be made to report all the income from
all sources as if this were a resident estate or trust.
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COLUMN B – LINE 1B
Enter in Column B, Line 1b the amount of Pennsylvania
taxable income reported as if this were a nonresident estate
or trust.

organization. This would include the Pennsylvania-source
portion of those amounts shown on Line 16 of this schedule.

If this is a nonresident estate or trust with no resident
beneficiary, enter the amount from the PA-41, Fiduciary
Income Tax Return, Line 7.

TAXABLE INCOME AVAILABLE FOR DISTRIBUTION

If this is a resident estate or trust without a resident
beneficiary, a nonresident estate or trust with a resident
beneficiary, a nonresident estate or trust with PA-source
income distributed to a nonresident beneficiary or a resident
or nonresident estate or trust with another estate or trust,
partnership, limited liability company and/or PA S
corporation (entity) as a beneficiary, a separate calculation
of income must be made to include only the taxable income
from Pennsylvania sources.
Use PA-41 Schedule N, Part 1 to calculate the total taxable
income from Pennsylvania sources. Enter the amount from
PA-41 Schedule N, Part 1, Line 6 as the total Pennsylvaniasource income.
If this income is derived solely from interest, dividends,
and/or the sale, exchange or disposition of intangible
property (stocks, bonds, business interests, etc.), this figure
will be zero.

LINE 2
INCOME INCLUDED IN LINE 1ABOVE BUT NOT
DISTRIBUTABLE/DISTRIBUTED UNDER STATE LAW
OR THE GOVERNING INSTRUMENT
COLUMN A – LINE 2A
Enter in Column A, Line 2a the dollar amount of gross
income which, pursuant to the terms of the governing
instrument or under applicable law, is unconditionally
required to be either (1) retained, accumulated or set
aside for future distribution or disbursement, or (2)
currently applied to discharge, satisfy or reduce any
person’s legal obligations.
Also included in this line are any amounts that are
permanently set aside for future distribution to a purely
religious, charitable, scientific, literary, or educational
organization. This would include those amounts shown on
Line 16 of this schedule.
COLUMN B – LINE 2B
Enter in Column B, Line 2b the dollar amounts of gross
income allocable to Pennsylvania, which, pursuant to the
terms of the governing instrument or under applicable law
is unconditionally required to be either (1) retained,
accumulated or set aside for future distribution or
disbursement, or (2) currently applied to discharge, satisfy
or reduce any person’s legal obligations.
Also included in this line are any amounts that are
permanently set aside for future distribution to a purely
religious, charitable, scientific, literary or educational
2

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LINE 3
COLUMN A – LINE 3A
Enter in Column A, Line 3a the amount obtained by
subtracting Line 2a from Line 1a to arrive at the taxable
income to be distributed.
COLUMN B – LINE 3B
Enter in Column B, Line 3b the amount obtained by
subtracting Line 2b from Line 1b to arrive at the
Pennsylvania taxable income to be distributed.

LINE 4
TOTAL DISTRIBUTABLE/DISTRIBUTED
NONTAXABLE INCOME
COLUMN A – LINE 4A
Enter the amount of nontaxable gross receipts for the
taxable year that are both:
• Not required under laws applicable to the administration
of estates or trusts or the governing instrument to be
retained for future distribution or disbursement or to be
currently applied to discharge, satisfy or reduce any
person’s legal obligations; and
• Derived from the ownership or disposition of an
obligation issued by the federal government,
Pennsylvania or their instrumentalities or life insurance,
annuity and endowment contracts.

LINE 5
ALL INCOME AVAILABLE FOR DISTRIBUTIONS
COLUMN A – LINE 5A
Add the amounts on Lines 3a and 4a. This amount
represents the total income available for distribution from
both taxable and nontaxable sources.

LINE 6
LINE 3A ÷ LINE 5A
COLUMN A – LINE 6A
Divide the amount on Line 3a by the amount on Line 5a to
determine the percentage. Calculated to four decimal
places, __ __ . __ __ __ __ percent of the total taxable
income (Line 3a) available for distribution compared to the
total income available for distribution (Line 5a).
If Lines 3a and 5a are the same, this line will be 100 percent.
Example. Percentage conversion. 0.755555 = 75.5555
percent
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LINE 7

LINE 11

LINE 3B ÷ LINE 5A
COLUMN B – LINE 7B
Divide the amount on Line 3b by the amount on Line 5a to
determine the percentage. Calculated to four decimal
places, __ __ . __ __ __ __ percent of the total
Pennsylvania-source taxable income (Line 3b) available for
distribution compared to the total income available for
distribution (Line 5a).

TOTAL CASH DISTRIBUTED
COLUMN A – LINE 11A
Estates or trusts should enter the total dollar amount of cash
distributions made to beneficiaries during the taxable year.

If Line 3b is zero, the percentage will also be 0 percent.
If you are filing for an estate, enter zero on Lines 8a,
9a, and 10a, and proceed to Line 11a.

LINE 8
TOTAL REQUIRED TO BE DISTRIBUTED
COLUMN A – LINE 8A
For a trust, enter the total of all amounts, whether taxable
or not and whether from income or corpus or not, which are
specifically required under the governing instrument to be
distributed during the taxable year, whether actually
distributed or not.
For resident trusts with no resident beneficiaries or nonresident
trusts with resident beneficiaries, enter the amounts as if any
nonresident beneficiaries are resident beneficiaries.

LINE 9
COLUMN A - LINE 9A
For a trust, enter the amount of income specifically required
under the governing instrument to be distributed during the
taxable year that has been actually distributed, and/or the
amounts that have or have not been actually distributed, but,
under the governing instrument, are to be paid exclusively
out of corpus.
In most cases, the difference in amounts reported on
Lines 8a and 9a will be the difference between the
amount of total income required to be distributed and the
amount of income actually distributed (as included in both
lines is the amount of corpus required to be distributed). As
Line 9a also includes the amount of corpus actually
distributed, the difference on Line 10a may result in a
negative number (in some cases) when the amount of
corpus actually distributed is more than the amount of
corpus required to be distributed.

Do not include amounts properly paid out of corpus as gifts
or bequests of specific sums of money or amounts that
were required to be distributed in any prior taxable year,
but were not.

LINE 12
TOTAL PROPERTY DISTRIBUTED
COLUMN A – LINE 12A
Estates or trusts should enter the total market value of
property distributions made to beneficiaries during the
taxable year.
Do not include property distributed in-kind as a gift or
bequest of specific property.

LINE 13
TOTAL DISTRIBUTABLE/DISTRIBUTED
COLUMN A – LINE 13A
Add Lines 10a, 11a and 12a to arrive at the total amount
distributed/distributable by the estate or trust.

LINE 14a
LINE 6A X LINE 13A
COLUMN A - LINE 14A
Enter in Column A, Line 14a the product of multiplying Line
13a, the amount distributed/distributable, by the percentage
on Line 6a.
This
is
the
amount
of
the
total
amount
distributed/distributable that is allocable to taxable income.

LINE 14b
LINE 7B X LINE 13A
COLUMN B – LINE 14B
Enter in Column B, Line 14b the product of multiplying Line
13a, the amount distributed/distributable, by the percentage
on Line 7b.
This
is
the
amount
of
the
total
amount
distributed/distributable that is allocable to Pennsylvaniasource taxable income.

LINE 10

LINE 15

TOTAL DISTRIBUTABLE CURRENTLY
COLUMN A – LINE 10A
Subtract the amount on Line 9a from the amount on Line 8a
to determine the total amount of undistributed income that
the trust must distribute currently.

RESIDENT ESTATES AND TRUSTS AND
NONRESIDENT ESTATES AND TRUSTS WITH
RESIDENT BENEFICIARIES
Resident estates and trusts and nonresident estates and
trusts with resident beneficiaries should enter the lesser of

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Line 3a, the total taxable income to be distributed, or Line
14a, the amount of allocated total income actually
distributed/distributable.
If all the beneficiaries are resident beneficiaries, the
amounts shown on all PA-41 Schedules RK-1, Line 6,
should total to equal the amount shown on Line 15 of PA
Schedule DD.
If all the beneficiaries are individuals and there are resident
and nonresident beneficiaries, the amount reported on Line
15 of PA Schedule DD will be as if all the beneficiaries who
received distributions were PA residents. The amount
reported on PA-41 Schedules RK-1 Line 6 for each resident
beneficiary will be determined based upon the lesser of a
beneficiary’s actual percentage of income distributed or the
actual amount distributed for each resident beneficiary. The
amount reported on PA-41 Schedule NRK-1 Line 4 for each
nonresident beneficiary will be determined based upon the
lesser of a beneficiary’s actual percentage of PA-source
income distributed or the actual amount of PA-source
income distributed for each nonresident beneficiary.
If there are resident and nonresident beneficiaries who are
individuals as well as estates, trusts, partnerships and/or
S corporations (entities), the amounts reported on Line 15
of PA Schedule DD will also be as if all beneficiaries who
received distributions were PA resident beneficiaries. The
amount reported on PA-41 Schedules RK-1 Line 6 for
each resident individual and each entity beneficiary will be
determined based upon the lesser of a beneficiary’s actual
percentage of income distributed or the actual amount
distributed for each resident individual beneficiary and
each entity beneficiary. The amount reported on PA-41
Schedule NRK-1 Line 4 for each nonresident individual
beneficiary and each entity beneficiary will be determined
based upon the lesser of each nonresident individual and
entity beneficiary’s actual percentage of PA-source
income distributed or the actual amount of PA-source
income distributed for each nonresident individual and
entity beneficiary.
RESIDENT ESTATES AND TRUSTS ONLY
If all the beneficiaries are nonresident individual or entity
beneficiaries, the amount reported on Line 15 of PA
Schedule DD will be as if all the beneficiaries who received
distributions were PA resident individuals or entities. The
amount reported on PA-41 Schedule NRK-1 Line 4 for each
nonresident individual beneficiary and each entity
beneficiary will be determined based upon the lesser of each
nonresident individual and entity beneficiary’s actual
percentage of PA-source income distributed or the actual
amount of PA-source income distributed for each
nonresident individual and entity beneficiary.
NONRESIDENT ESTATES AND TRUSTS WITH
NONRESIDENT INDIVIDUAL BENEFICIARIES ONLY
If all the beneficiaries are nonresident individual or entity
beneficiaries, the amount reported on Line 15 of PA
Schedule DD will be the lesser of Line 3b, the total income
4

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allocable to Pennsylvania sources to be distributed, or Line
14b, the amount of allocated Pennsylvania-source income
actually distributed. The amounts reported on PA-41
Schedule NRK-1 Line 4, should total to equal the amount
shown on Line 15 of PA Schedule DD.

LINE 16
CHARITABLE DISTRIBUTION DEDUCTION
Resident estates or trusts should enter the amount of
taxable income included in PA-41 Schedule DD, Line 2a, for
which a charitable distribution deduction is allowed.
Nonresident estates or trusts should enter the amount of
Pennsylvania-source taxable income included in PA-41
Schedule DD, Line 2b for which a charitable distribution
deduction is allowed.
CAUTION: This deduction is only allowed if the
governing instrument requires that all or a part of the
income is set aside for a purely religious, charitable,
scientific, literary or educational organization, and this
amount cannot be set aside to benefit a taxable beneficiary.
For example, if there is a possibility that the amount may be
used to make up part of a payment of a guaranteed amount
to a taxable beneficiary, this amount may not be deducted.
An estate or trust qualifies for a charitable distribution
deduction if it is unconditionally required under applicable
law, or its governing instrument, to retain and permanently
set aside all or a determinable part of its retained total
income for the taxable year exclusively for the benefit of a
purely religious, charitable, scientific, literary, or educational
organization.
This line contains only the portion of the income from Line
2a, 2b, or both, that satisfies the conditions in the preceding
sentence. No amount included on Line 2a or 2b of PA-41
Schedule DD will be considered permanently set aside or
used exclusively for the benefit of such organizations unless,
under applicable law or the terms of the estate or trust’s
governing instrument and the circumstances of the particular
case, the possibility that the amount set aside or to be used
will not be disbursed, distributed or used for the benefit of
such an organization is so remote as to be negligible.
Example. Where there is a possibility of the invasion of
corpus of a charitable remainder trust in order to
makepayment of the annuity amount or unitrust amount, the
estate or trust may not take a deduction.
CALCULATION OF CHARITABLE
DISTRIBUTION DEDUCTION
If applicable law or governing instrument specifically
provides the source from which the estate or trust shall set
aside proceeds or receipts exclusively for charity, the
amount of the charitable deduction is the amount that would
be properly reported on PA-41 Schedule DD, Line 1a or PA41 Schedule DD, Line 1b in the case of a nonresident estate
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or trust, where such receipts or proceeds are the only items
of income for the year.
Otherwise, the charitable deduction is that portion of the
amount reported on PA-41 Schedule DD, Line 2a or PA-41
Schedule DD, Line 2b in the case of a nonresident estate or
trust, which the amount actually retained, accumulated, and
set aside for the taxable year exclusively for the benefit
charity bears to the total amount actually retained,
accumulated, and set aside for the taxable year.

LINE 18
TOTAL DEDUCTION FROM PA SCHEDULE DD
Add Lines 15, 16 and 17. Enter the result here and on PA41, Fiduciary Income Tax Return, Line 8.

LINE 17
NONRESIDENT ESTATE OR TRUST WITH
RESIDENT BENEFICIARY ADJUSTMENT
If the estate or trust is a nonresident estate or trust with a
resident beneficiary and the entire amount of income from
the nonresident estate or trust has not been distributed to
the beneficiary(ies), you must calculate the amount of
intangible income and non-Pennsylvania-source income not
distributed by the nonresident estate or trust. Otherwise,
enter zero. Use the worksheet below to calculate the amount
to enter on Line 17.

WORKSHEET FOR LINE 17
1. Enter the amount from PA-41 Line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2. Enter the amount from Line 15 of Schedule DD. . . . . . . . . . . . .
3. Enter the amount from Line 16 of Schedule DD. . . . . . . . . . . . .
4. Add Lines 2 and 3 and enter the result . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5. Subtract Line 4 from Line 1 and enter the result . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6. Enter the amount from Line 3b of Schedule DD. . . . . . . . . . . . .
7. Enter the amount from Line 14b of Schedule DD. . . . . . . . . . . .
8. Subtract Line 7 from Line 6 (if less than zero, enter zero) . . . . .
9. Enter the amount from Line 2b of Schedule DD. . . . . . . . . . . . .
10. Add Lines 8 and 9 and enter the result . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11. Subtract Line 10 from Line 5 and enter the result here
and on Line 17 of Schedule DD. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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