Article: 50449
Overview
In certain situations, you may need to include an explanatory statement or supporting clarification with your Pennsylvania income tax return. This may be used to explain unusual income sources, override entries, allocation issues, or other items that may require further documentation for the Pennsylvania Department of Revenue to properly process your return. This is done using the PA – Statement Schedule.
When Should You Use This Form?
Use this form if you need to:
- Clarify entries or adjustments on your PA-40 or supporting schedules.
- Provide an explanation for override entries or manual calculations.
- Disclose supporting information for special tax treatment.
- Document third-party transactions, amended amounts, or prior-year carryforwards.
- Responding to known items, the state may flag without supporting context.
Note: Examples include clarifying a capital gain exclusion, self-employment income allocation, or out-of-state income calculations on Schedule G-L.
How to Report
- Navigate to the State Taxes section on the left-hand side of the screen.
- Click the link: “I’d like to see the forms I’ve filled out or search for a form.”
- In the dropdown menu, select Pennsylvania.
- Click on the Other tab.
- Click on “Statement Schedule” to open the form.
- Enter all applicable information.
- Click ‘Save‘ once complete.
Common Uses of Statement Schedule
| Use Case | Example Explanation |
| Override of depreciation | Depreciation was manually adjusted for PA Schedule C because Pennsylvania does not conform to bonus depreciation. |
| Nonresident income allocation | Only $4,200 of the $10,000 in Schedule C income was earned in Pennsylvania. The rest was earned in New Jersey. |
| Amended carryover | Loss carryforward was corrected from prior year due to IRS audit adjustment not previously reflected on PA-40. |
Additional Resources
For full details, refer to the official Pennsylvania Personal Income Tax Return Instructions: