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2020 Pennsylvania PA20-S NRK-1 withholding

afeinberg
Level 1

Penna state instructions clearly say that negative amounts (for a category of income) should not be entered when calculating withholding tax due.

I have a corporation that has a large cap gain loss, but the other categories of income in PA for non residents - ordinary business and royalties - are positive and tax is due on them, but ProSeries when populating the Schedule NW shows 0 income and 0 tax due.

Is there anyway to correct this besides overriding the entries for each shareholder?

 

 

Labels (1)
6 Replies 6
Werd
Level 2

We're having a similar issue and questioning if the PA forms are accurate. Our issue is within a partnership return (PA20S) for a non-resident partner. The withholding tax for the partner is not calculating and will not show on the partners NRK-1 even after doing an override. We are kind of stuck until ProSeries can get this form calculating correctly.

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Julia74
Level 1

I even tried to override my amount to show a large amount and the system is not calculating any nonresident tax.  I do not have any losses only income.  It seems like ProSeries took the calculation away for the schedule and now it's not calculating at all.

 

Has anyone called ProSeries to discuss it?  

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afeinberg
Level 1

To get the PA non-resident withholding to show on the NRK-1, you have to enter it on the Schedule K-1 worksheet for each non-resident shareholder.  The spot is at the bottom of the box and is labeled "NRK-1 Line 6: estimated tax withheld for this shareholder"  The Schedule NW (even when it's working!) does not populate the K-1's.

In order to get my K-1's out I calculated on a spreadsheet the withholding, doubled checked it with the distribution checks I issued, entered it on K-1 worksheet, and mailed out the K-1's.  I also overrode the Schedule NW.  I haven't yet filed the PA 20 S hoping ProSeries will correct the error.  I have had 2 conversations with tech support people; both ending with, "Yes, I see the problem and will report it."  I'm worried that if they don't correct it PA will not accept an e-filing with all those overrides.

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jimst
Employee
Employee

Hi afeinberg,

The latest release of ProSeries updates the Schedule NW, Section I, Line A calculation of 'Pennsylvania Tax Due on Pennsylvania-Taxable Income to Nonresident Individuals, Estates or Trusts' along with  updated Schedule NW government instructions that were recently released by the Pennsylvania Dept of Revenue.

Check the applicable box at the bottom of 'PA Tax Due Calculation for Nonresidents' Smart Worksheet to apply the updated calculation.

jimst

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Werd
Level 2

With this newest update, checking the box does force the calculation, but it still does not flow the tax credit to the nonresident member's NRK-1. I still had to override the credit to force it to show. I don't recall an issue with this in the past years.

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jimst
Employee
Employee

Hi Werd,

Other credits entered on Schedule OC should calculate on Schedule NRK-1, Line 7. 

jimst

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