PA SCHEDULE A (LINE 2)
If your total PA-taxable interest income (taxpayer, spouse and/or joint) is $2,500 or less, you must report your income on Line 2 of the PA-40, but you do not have to complete and submit a schedule. If your total PA-taxable interest income(taxpayer, spouse and/or joint) is more than $2,500, you must complete PA Schedule A, with the name and PA-taxable interest of the payer from each Form 1099 or other statement.
A taxpayer and spouse must complete separate schedules to report their income or if any amounts are reported on Lines 3 through 7. However, if all the income is earned on a joint basis, one schedule may be completed. Complete the oval to indicate whether the income included on the schedule is from the taxpayer, spouse or joint. When reporting the interest income from jointly owned accounts not reported on a joint Schedule A, the taxpayer and spouse must show their share of the interest income on their separate Schedule A.
PA-taxable income includes interest from:
- Savings and loan associations
- Credit unions, even if reported as dividends on your statement
- Bank deposits
- Bonds (except as exempted below)
- Certificates of deposit
- Interest-bearing personal checking accounts
- State, federal, and local tax refunds
- Other deposits, investments, and obligations
- GNMA and FNMA certificates and other obligations that are guaranteed by the U.S. government, but not direct obligations of the U.S. government
- Obligations of other states or countries
- Mutual savings banks and cooperative banks, even if reported as dividends
IMPORTANT: Also report on PA Schedule A:
- Income on life insurance contracts, annuities, or endowments if reported for federal income tax purposes.
- Income from charitable gift annuities included in federal gross taxable income as ordinary or capital gain income.
- Any amount paid out of an Archer Medical Savings Account or Health Savings Account that is includable in the gross income of an account beneficiary for federal income tax purposes. Included in this category are distributions used for any purpose other than to pay qualified medical expenses, any amount considered to be excess contribution distributions not previously included in income, or any amount of the account's income attributable to excess contributions.
- Taxable amounts distributed from IRC Section 529 Qualified Tuition Programs for non-educational purposes.
- Please check our website at www.revenue.state.pa.us for more information on how to determine the taxable portion of any distributions for non-educational purposes.
PA-taxable income does not include interest from:
- Direct obligations of the U.S. government (U.S. Treasury Bonds, Notes, Bills, Certificates, and Savings Bonds)
- Direct obligations of the Commonwealth of Pennsylvania
- Direct obligations of political subdivisions of Pennsylvania
- Pennsylvania 529 College Savings accounts when earned or used to pay for Qualified Higher Education Expenses as defined in IRC Section 529 (e)(3)(A).
For a list of exempt obligations, request Tax Exempt Obligations for Pennsylvania Personal Income Tax Purposes (Form REV-1643).
NOTE: You must include PA tax-exempt interest in Eligibility Income for Tax Forgiveness purposes.
PA SCHEDULE B (LINE 3)
If your total PA-taxable dividend and capital gains distributions income (taxpayer, spouse and/or joint) is $2,500 or less, you must report your income on Line 3 of the PA-40, but you do not have to complete and submit a schedule. If your total PA-taxable dividend income (taxpayer, spouse and/or joint) is more than $2,500, you must complete PA Schedule B with the name of the payer and the PA-taxable dividend from each Form 1099 or other statement. A taxpayer and spouse must complete separate schedules to report their income or if any amounts are reported on Lines 3 and 4. However, if all the income is earned on a joint basis, one schedule may be completed. Complete the oval to indicate whether the income included on the schedule is from the taxpayer, spouse or joint. When reporting the dividend income from jointly owned stock not reported on a joint Schedule B, the taxpayer and spouse must show their share of the dividend income on their separate Schedule B.
Capital Gains Distributions:Capital gains distributions are taxable as dividend income on Line 3. Do not report capital gains distributions on PA Schedule D.
Stock Dividend Reinvestment Plans:
Under a stock dividend reinvestment plan, you elect dividends in the form of stock, rather than cash or other property. You must include the stock's fair market value as dividend income as of the date paid.
PA-taxable dividend income does not include:
- Dividends distributed by a corporation to its stockholders as stock, if the distribution is not personal income for federal purposes.
- Distributions designated as return of capital by utility companies and other corporations that reduce the basis of your stock in the corporation. NOTE: Once such distributions reduce your basis to zero, further distributions are Taxable Distributions from C Corporations on PA Schedule D. See below.
- Dividends from deposits or withdrawals from accounts paid by savings and loan associations, mutual savings banks, cooperative banks, and credit unions. Report these payments as PA-taxable interest income on Line 2 of your PA-40.
- Ordinary dividends paid by a mutual fund or a registered investment company that the fund/company statement designates as being exempt-interest dividends. Use the percentage of the total dividend income that is from exempt PA and exempt federal obligations to determine the tax-exempt portion of the dividend income.
- Dividends from PA tax-exempt obligations. Request Tax Exempt Obligations for Pennsylvania Personal Income Tax Purposes (Form REV-1643) for a list of exempt obligations.
- Dividends distributed under a charitable gift annuity are not taxable. However, after you recover the amount you donated, you must report further distributions as taxable gains on PA Schedule D.
NOTE: You must include PA tax-exempt dividend income in Eligibility Income for Tax Forgiveness purposes.
FAQs
How do I know if the amount on my 1099R (1099-R) is taxable on my PA Personal Income Tax Return? To determine if the amount you received is taxable in Pennsylvania, review boxes 1 through 3 (the amount you received or your distributions) and the PA PIT treatment of box 7 (the codes that will...
Do I need PA schedule A? ›
If your total PA-taxable interest income (taxpayer, spouse and/or joint) is equal to the amount reported on your federal return and you have no amounts for Lines 2 through 15 (not including subtotal Lines 4 and 10) of PA Schedule A, you must report your income on Line 2 of the PA-40, but you do not have to submit PA ...
Who must file PA schedule B? ›
PA resident and part-year resident taxpayers must complete and include PA-40 Schedule B with an originally filed PA-40, Personal Income Tax Return, if there are any amounts on Lines 2 through 11 (not including subtotal Line 6).
What is a Schedule B tax form? ›
Use Schedule B (Form 1040) if any of the following applies: You had over $1,500 of taxable interest or ordinary dividends. You received interest from a seller-financed mortgage and the buyer used the property as a personal residence. You have accrued interest from a bond.
How much money do you need to make to file taxes in PA? ›
If you are a PA resident, nonresident or a part-year PA resident, you must file a 2022 PA tax return if: • You received total PA gross taxable income in excess of $33 during 2022, even if no tax is due with your PA return; and/or • You incurred a loss from any transaction as an individual, sole proprietor, partner in a ...
Do I need to include 1099-R with PA state tax return? ›
Yes, you must file 1099 forms with the Pennsylvania state even if there is no state tax withholding.
What do I do if my 1099-R says taxable amount not determined? ›
Box 2b, Taxable amount not determined: If the “Taxable amount not determined” is checked, then the CTRB did not have all the necessary information to determine the taxable amount. In this case, you will be required to determine the non-taxable amount yourself.
Who needs to use a Schedule A? ›
Schedule A is required in any year you choose to itemize your deductions. The schedule has seven categories of expenses: medical and dental expenses, taxes, interest, gifts to charity, casualty and theft losses, job expenses and certain miscellaneous expenses.
Is it worth claiming medical expenses on taxes? ›
Normally, you should only claim the medical expenses deduction if your itemized deductions are greater than your standard deduction (TurboTax can also do this calculation for you). If you elect to itemize, you must use IRS Form 1040 to file your taxes and attach Schedule A.
What is schedule A on a tax return? ›
Schedule A is used to claim itemized deductions that reduce your taxable income and the total amount of taxes you pay. The categories that can be itemized include taxes, interest paid, gifts to charity, medical and dental expenses, casualty and theft losses, and other miscellaneous expenses.
However, you don't need to attach a Schedule B every year you earn interest or dividends. It is only required when the total exceeds certain thresholds. For most taxpayers, a Schedule B is only necessary when you receive more than $1,500 of taxable interest or dividends.
What interest income is not taxable? ›
The most common sources of tax-exempt interest come from municipal bonds or income-producing assets inside of Roth retirement accounts.
What is a PA 65 Schedule B? ›
PURPOSE OF SCHEDULE
Use PA-20S/PA-65 Schedule B to report dividend income and capital gain distributions of PA S corporations, partnerships and limited liability companies filing as partnerships or PA S corporations for federal income tax purposes.
What does Schedule B stand for? ›
Schedule B numbers are 10-digit statistical classification codes for all domestic and foreign goods being exported from the United States. With over 9,000 codes, the process can seem overwhelming.
What are Schedule B items? ›
A Schedule-B is a U.S.-specific classification code for exporting goods from the United States. It is administered by the Census Bureau's Foreign Trade Division, which keeps records of exports by country as well as the quantity and value in U.S. dollars.
Do I have to report interest income less than $1500? ›
Reporting interest income on your tax return
You should report tax-exempt and taxable interest on your income tax return (lines 2a and 2b of the 1040). You may also be required to file Schedule B, if your taxable income is more than $1,500 or under certain other conditions (see the form instructions).
What income is not taxable in PA? ›
Pennsylvania income taxes
Pennsylvania tax on retirement benefits: Social Security and Railroad Retirement benefits are not taxed by the state. Income from private employer, government and military retirement plans paid after the taxpayer becomes eligible to retire is tax-exempt.
How much tax do you pay on a $1000 lottery ticket in PA? ›
Yes, lottery winnings are taxable under state and federal law. In Pennsylvania, all lottery winnings are subject to the commonwealth's 3.07% state personal income tax, plus an additional 24% through federal taxes.
What is the average tax return for a single person making $60,000? ›
If you make $60,000 a year living in the region of California, USA, you will be taxed $13,653. That means that your net pay will be $46,347 per year, or $3,862 per month.
How do I find my taxable income on 1099-R? ›
Generally, the issuer of the 1099-R will have an amount listed in Box 2a for the taxable amount. If no amount is listed, you will need to determine the amount yourself. If this is a Roth Distribution that has been held for 5 or more years and you are withdrawing the contributions only, enter $0 for Box 2a.
All IRA distributions should be reported on PA Schedule W-2S, Wage Statement Summary, whether or not some or all of the distributions are taxable. If a taxpayer receives distributions before he/she reaches 59 ½ years of age, some of the distributions may be taxable.
What is the unknown taxable amount on a 1099-R? ›
If your 1099R Statement Box 2. a for the Taxable Amount is marked as 'Unknown'; this means that OPM did not calculate the tax-free portion of your annuity.
What retirement income is taxable in Pennsylvania? ›
Retirement income is not taxable: Payments from retirement accounts like 401(k)s and IRAs are tax exempt. PA also does not tax income from pensions for residents aged 60 and over. Social Security income is not taxable: Just like with a pension, in Pennsylvania, Social Security is tax exempt.
