Schedule DD (1041 PA)

Onvio Tax calculates the distribution deduction on Schedule DD. 

Column A

Column A is the resident column and displays all sources of income.

Column B

Column B is the nonresident column and displays PA source income only. The nonresident column calculates the distribution deduction for nonresident beneficiaries.  There may be amounts in this column if a trust has only has resident beneficiaries. 

Line 1 Total income from Line 7, PA-41

Column B, line 1 automatically includes interest and dividend income coded with postal code PA on the federal Income screen.

Line 2 Income included in Line 1

Line 2 of schedule DD is to report capital gain and other income that is not distributable. Onvio Tax does calculate the amounts on line 2; However, you may need to make manual adjustments to line 2 amounts, especially in column B because the federal program does not track ‘corpus’ on an instate basis. To make adjustments, use the input fields on the PAIncome screen.

Onvio Tax will automatically include capital gains not distributed on Schedule DD line 2a. To make adjustments to the amount on line 2a, use the Schedule DD, line 2a – adjustment field on the PAIncome screen.

Line 8 Total required to be distributed

Line 8 is calculated on a taxable income basis. To override the calculated amount, use the Total required to be distributed (Force) field on the PAIncome screen. See the notes below for details on data entry and calculations for line 8.

  • Revocable grantor trusts use the total income amount from line 1 of this schedule.
  • You must use the force field for irrevocable grantor trusts with a distribution to the beneficiaries.
  • Simple, complex, and pooled income fund trusts use income calculated on the Income Allocation Worksheet.
  • Decedent estates show zero on Schedule DD, lines 8a, 9a, and 10a. For decedent estates, you must force line 11 and line 12 amounts on the PAIncome screen.
  • Charitable lead trusts use the amount from federal Form 5227, Page 4.
  • Charitable annuity trusts use the amount from federal Form 5227, Page 2.
  • Charitable remainder unitrusts use the amount from federal Form 5227, Page 1.
  • If the return includes nontaxable income, you must force the line 8 amount on the PAIncome screen.

Line 15 Deduction for distribution

The total amount allowed to be distributed to beneficiary is the lesser of line 3a or 14a.


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