Pennsylvania Form PA-40 B (PA Schedule B - Dividend Income) (2024)

PA Schedule B - Dividend Income
2023 PA Schedule B - Dividend Income (Form and Instructions) (PA-40 B)
IMPORTANT: FILL IN FORM MUST BE DOWNLOADED ONTO YOUR COMPUTER PRIOR TO COMPLETING2301510059PA SCHEDULE BDividend IncomePA-40 B (EX) 09-23 (FI)PA Department of RevenueSTART➜2023OFFICIAL USE ONLYName (if filing jointly, use name shown first on the PA-40)Social Security Number (shown first)CAUTION: Federal and PA rules for dividend income are different. Read the instructions.If your total PA-taxable dividend and capital gains distributions income (taxpayer, spouse, and/or joint) is equal to the amount reportedon your federal return and does not include any amounts for Lines 2 through 11 (not including subtotal Line 6) of PA Schedule B, youmust report your income on Line 3 of the PA-40, but you do not have to submit PA Schedule B. If there are any amounts (taxpayer,spouse, and/or joint) for any of the Lines 2 through 11 (not including subtotal Line 6), you must complete and submit PA Schedule B withyour PA-40. A taxpayer and spouse must complete separate schedules to report their income if any amounts are reported on Lines 2through 11 (not including subtotal Line 6) of Schedule B. However, if all the income is earned on a joint basis, one schedule may becompleted. Complete the oval to indicate whether the income included on the schedule is from the taxpayer, spouse, or joint. If aseparate PA Schedule B is prepared for a taxpayer and spouse, include only the taxpayer or spouse share of the income for each line.PA SCHEDULE B – PA-Taxable Dividend andCapital Gains Distributions Income (See the instructions.)TaxpayerSpouseJoint1. Dividend income from Line 3b of your federal return. See instructions.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.4. $Description:5. $5. Add the amounts on Lines 2, 3, and 4.6. $6. Subtract Line 5 from Line 1.7. Total exempt-interest dividends. See instructions.7. $8. Other addition adjustments. See instructions.8. $Description:9. Repatriation of foreign income. See instructions.a. Total earnings and profits included on Line 1 ofIRC Section 965 Transition Tax Statement.9a.b. Total payments of earnings and profits includedin 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 - See instructions.10. $11. Dividend income from PA S corporation(s) and partnerships, reported on yourPA Schedule(s) RK-1 or federal Schedule(s) K-1.11. $12. Total PA-Taxable Dividend Income. Add Lines 6, 7, 8, 9c, 10, and 11.Enter on Line 3 of your PA-40.2301510059Reset Entire FormTOP OF PAGE12. $2301510059NEXT PAGEPRINT2023Instructions for PA-40 Schedule BDividend IncomePA-40 B IN 09-23GENERAL INFORMATIONPURPOSE OF SCHEDULEUse PA-40 Schedule B to report the amount of dividend income earned and reported for federal income tax purposesfrom:● U.S. corporations● Foreign corporations● Mutual Funds● Other corporate capital investmentsPA-40 Schedule B also adjusts the federal income to determine the PA-taxable dividend income by reporting incomeand adjustments from:● Capital gains distributions● S corporations not electing to be taxed as an S corporation for PA tax purposes● Exempt-interest dividends from other states bonds● Various other increase and decrease adjustments included in the following instructionsRefer to the PA Personal Income Tax Guide – Dividendssection for additional information.RECORDING DOLLAR AMOUNTSShow money amounts in whole-dollars only. Eliminate anyamount less than $0.50 and increase any amount that is$0.50 or more to the next highest dollar.WHO MUST COMPLETEPA resident and part-year resident taxpayers must completeand include PA-40 Schedule B with an originally filed PA-40,Personal Income Tax Return, if there are any amounts onLines 2 through 11 (not including subtotal Line 6). If thereare no amounts on Lines 2 through 11 (not including subtotalLine 6), do not complete and include PA-40 Schedule B withthe PA-40, Personal Income Tax Return. However, theamount of dividend income received must be reported onLine 3 of the PA-40. Nonresident taxpayers are not requiredto complete PA-40 Schedule B.Separate schedules must be completed for a taxpayer andspouse if either has income on Lines 2 through 11 of PASchedule B (not including subtotal Line 6). Both schedulesmust be completed and included even if only one hadamounts on those lines. A joint PA-40 Schedule B may becompleted only if all amounts of interest income are earnedon a joint basis. If some income is earned on a joint basiswhile other income is not, the joint income must be split andthe taxpayer and spouse must report their separate sharewww.revenue.pa.govPREVIOUS PAGEof the income from the jointly owned accounts on each PA40 Schedule B.An amended PA Schedule B must be included with Schedule PA-40 X if increases or decreases in income amountson PA Schedule B are discovered after an original or otheramended return is filed with the department. Section III onPage 2 of Schedule PA-40 X must be completed to explainany increase or decrease to the amount of dividend incomereported on an amended PA-40, Personal Income Tax Return.SCHEDULE INSTRUCTIONSIDENTIFICATION INFORMATIONNAMEEnter the name of the taxpayer. If a jointly filed return, enterthe name of the primary taxpayer (name shown first on thePA-40, Personal Income Tax Return). Enter the primary taxpayer’s name when reporting the dividend income for thespouse.SOCIAL SECURITY NUMBEREnter the Social Security number (SSN) of the taxpayer.Enter the primary taxpayer’s SSN also when reporting dividend income for the spouse.TAXPAYER OVALComplete the taxpayer oval to indicate the dividend incomereported is from the taxpayer whose name appears on thename line.SPOUSE OVALComplete the spouse oval to indicate the dividend incomereported was earned by the spouse listed on a PA-40, Personal Income Tax Return, filed using the Married, FilingJointly filing status.JOINT OVALComplete the joint oval if all the dividend income reportedby the taxpayer and spouse is earned and being reportedon a joint basis.NOTE: Do not use the joint oval to report joint dividendincome if any dividend income is earned by the taxpayer and/or spouse separately. In such cases, the joint income must be split and the taxpayer and spouse must showthe separate share of the joint dividend income on the separate PA-40 Schedule B prepared for each.LINE INSTRUCTIONSIMPORTANT: If a separate PA-40 Schedule B is prepared for a taxpayer and spouse, include only the taxpayer or spouse share of the dividend income for each line.PA-40 BNEXT PAGE1LINE 1Enter the amount of dividend income reported on Line 3bof the federal return. If filing a joint return and required toshow the dividend income for a taxpayer and spouse separately, enter only the taxpayer or spouse’s portion of thedividend income reported on Line 3b of the federal return.If a federal return is not required to be filed, see the instructions for Line 8.LINE 2Enter the total amount of dividend income included on Line5 of federal Schedule B from federal Schedule(s) K-1.LINE 3Enter the total amount of any tax-exempt dividends from direct obligations of the Commonwealth of Pennsylvania, direct obligations of political subdivisions of Pennsylvaniaand/or direct obligations of the U.S. Government (U.S.Treasury Bonds, Notes, Bills, Certificates and SavingsBonds) included in any tax exempt fund or money marketfund dividends.LINE 4Enter any other adjustments that decrease PA dividend income and provide a description of the amounts. Exampleswould include, but are not limited to: dividend income for apart-year resident taxpayer during the period the taxpayerwas a nonresident; nominee capital gains distributions; anddividend income from an irrevocable federal grantor trustthat is required to file a PA-41, Fiduciary Income Tax Return. Do not include expenses incurred to realize dividendincome.IMPORTANT: If a federal return is not required to befiled, enter on this line the amount of dividend incomereported in Box 1 of all federal Forms 1099-DIV, Dividendsand Distributions, as well as any other federally taxable dividend income received from all sources including, but notlimited to, dividends from federal Schedule K-1s.LINE 9As a result of the federal Tax Cuts and Jobs Act of Dec. 22,2017, additional dividend income may have to be includedfor Pennsylvania personal income tax purposes on incomethat was subject to the federal Repatriation Transition Taxon 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 notincludable in Pennsylvania taxable income, the amount ofactual earnings and profits cash payments received duringa tax year are taxable for Pennsylvania personal income taxpurposes. Refer to Informational Notice Corporation Taxesand Personal Income Tax 2018-1: Tax Cuts and Jobs Act of2017, available on department’s website for additional information regarding the repatriation of foreign income.LINE 9aEnter the amount of deemed dividend foreign earnings andprofits reported on Line 1 of the IRC Section 965 TransitionTax Statement for calendar or fiscal year tax returns for2017.LINE 9bEnter the amount of cash payments of foreign earnings andprofits received in prior tax years attributable to the amountreported on Line 9a that were previously reported as dividend income for Pennsylvania personal income tax purposes.LINE 7IMPORTANT: If no amount of repatriated foreignearnings was reported on the 2017 through 2022PA-40 Schedule B as additional dividend income, enter azero on Line 9b. However, if cash payments were receivedduring 2017 through 2022 attributable to the amountreported on Line 9a and no income was reported for foreignrepatriated income, the appropriate year’s PA-40 should beamended to include the amount received in 2017 on Line 8of the 2017 PA-40 Schedule B or the amount received in2018 through 2022 on Line 9c of the respective year’sPA-40 Schedule(s) B. The total amount included on theamended returns should then be included on Line 9b.Enter the total amount of any exempt-interest dividends reported in Box 11 of federal Form 1099-DIV, Dividends andDistributions, that are included in Line 2a of the federal return.LINE 9cEnter the amount of cash received during the current taxyear that is attributable to the repatriation of foreign incomeincluded on Line 9a.CAUTION: Do not include the amount of tax-exemptinterest included in Line 2a of the federal return in thisamount.CAUTION: Federal Form 1099-DIV, Dividend Income,may not be prepared and sent by the payer for thesepayments. Even if the 1099-DIV is not prepared, the cashpayments received must be reported as dividend income forPennsylvania personal income tax purposes.LINE 5Add the amounts on Lines 2, 3, and 4 and enter the result.LINE 6Subtract Line 5 from Line 1 and enter the result. The amountreported for this line may be a negative number.LINE 8Enter any other adjustments that increase PA dividend income and provide a description of the amounts. Examplesinclude, but are not limited to: excessive salary paid to ashareholder; nominee capital gains distributions; distributions from non-PA S corporations; and expenses incurred torealize dividend income.2PA-40 BPREVIOUS PAGELINE 10Enter the amount of capital gains distributions included ascapital gains on federal Schedule D. If federal Schedule Dis not required, enter the amount of capital gains distributions reported directly on the federal return.www.revenue.pa.govNEXT PAGELINE 11Enter the amount of dividend income from PA S corporationsand partnerships. Include the amounts reported from all PASchedule(s) RK-1, or federal Schedule(s) K-1 if an RK-1 isnot provided.LINE 12This amount cannot be a negative number. If the resultis negative, an amount has not been included on anaddition line or excess adjustments have been recorded.Include the total from Line 12 (or the combined Line 12amounts for taxpayer and spouse using the Married, FilingJointly filing status) on Line 3 of the PA-40, Personal IncomeTax Return.Add Lines 6, 7, 8, 9c, 10, and 11 and enter the result.www.revenue.pa.govPREVIOUS PAGEPA-40 B3RETURN TO FORM

Extracted from PDF file 2023-pennsylvania-form-pa-40-b.pdf, last modified October 2018

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