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Screen PAM1 - Pennsylvania Schedule M Adjusting Federal Income (1065)
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Overview
Use this screen to complete PA Schedule M, Reconciliation of Federal Taxable Income to PA Taxable Income.
Classifying Federal Income for PA Purposes
Federal ordinary income, if different from PA business income, to: Gain (loss) from sales
An entry here will reclassify the amount from Schedule M, line 1b to line 1e.
Type Code
in the statement can classify any item as instate or out-of-state on Schedule D. Type Code | Description | Destination |
|---|---|---|
I | PA | PA Schedule D, Page 1 |
O | Non-PA | PA Schedule D, Page 3 |
Classifying Federal Income for PA Purposes - Interest Income
Federal interest income to: Interest income / … / Gain (loss) from sales
The statement contains all of the interest information entered in the federal K screen.
Class Code
in the statement can classify any item as interest, business income, dividends, rent and royalty, or gains. Select F4 to see a list of available codes. Additional amounts may be entered on a blank line. The available class codes for interest amounts are shown in the following table. Class Code | Description | Destination |
|---|---|---|
I | Interest (default) | PA Schedule M, Reconciliation of Federal Taxable Income to PA Taxable Income, Interest, column c |
B | Business income | PA Schedule M, Reconciliation of Federal Taxable Income to PA Taxable Income, Interest, column b |
D | Dividends | PA Schedule M, Reconciliation of Federal Taxable Income to PA Taxable Income, Interest, column d |
R | Rent & royalties | PA Schedule M, Reconciliation of Federal Taxable Income to PA Taxable Income, Interest, column f |
G | Gains | PA Schedule M, Reconciliation of Federal Taxable Income to PA , Taxable Income, Interest, column e |
note
For interest classified as gains, enter the amount of installment sale interest in the PASale or PAInstPY screen.
Federal US interest income to: Interest income / … / Rent and royalty income
The statement contains all of the U.S. interest information entered in the federal K screen.
Type Code
in the statement can classify any item for purposes of PA Schedule M, Reconciliation of Federal Taxable Income to PA Taxable Income, Section III, line b4, Income from US Government and PA Schedule A, line 8, PA exempt interest included as federal portfolio income on federal Schedule K. To exclude an item from the state return, delete the amount, enter a zero, or delete the entire line item from the statement. The application displays the modified column in black and won't overwrite the new data with subsequent federal-to-state data transfers.
Type Code | Description | Destination | |||
|---|---|---|---|---|---|
I | Include in US interest (default) | PA Schedule M, Reconciliation of Federal Taxable Income to PA Taxable Income, Section III, line b4 or PA Schedule A, line 8 | |||
E | Exclude from US interest | The amount transfers to PA Schedule M, Reconciliation of Federal Taxable Income to PA Taxable Income, Interest, but isn't included in Reconciliation of Federal Taxable Income to PA Taxable Income, Section III, line b4 or PA Schedule A, line 8 | |||
Class Code
in the statement can classify any item as interest, business income, dividends, or rent and royalty. Select F4 to see a list of available codes. Additional amounts may be entered on a blank line. The available class codes for U.S. interest amounts are shown in the following table. Class Code | Description | Destination |
|---|---|---|
I | Interest (default) | PA Schedule M, Reconciliation of Federal Taxable Income to PA Taxable Income, Interest, column c |
B | Business income | PA Schedule M, Reconciliation of Federal Taxable Income to PA Taxable Income, Interest, column b |
D | Dividends | PA Schedule M, Reconciliation of Federal Taxable Income to PA Taxable Income, Interest, column d |
R | Rent & royalties | PA Schedule M, Reconciliation of Federal Taxable Income to PA Taxable Income, Interest, column f |
Classifying Federal Income for PA Purposes - Dividends
Federal dividend income to: Dividend income / … / Rent and royalty income
The statement contains all of the dividend information entered in the federal K screen.
Type Code
in the statement can classify any item for purposes of PA Schedule M, Reconciliation of Federal Taxable Income to PA Taxable Income and PA Schedule B, line 9, PA exempt dividends included as federal portfolio income on Federal Schedule K. Select F4 to see a list of available codes. Additional amounts may be entered on a blank line. The available class codes for other portfolio income amounts are shown in the following table. Class Code | Description | Destination |
|---|---|---|
D | Dividend (default) | PA Schedule M, Reconciliation of Federal Taxable Income to PA Taxable Income, Dividends, column d |
P | PA exempt dividends | PA Schedule M, Reconciliation of Federal Taxable Income to PA Taxable Income, Dividends, column d and PA Schedule B, line 9, PA exempt dividends included as portfolio dividends |
B | Business income | PA Schedule M, Reconciliation of Federal Taxable Income to PA Taxable Income, Dividends, column b |
R | Rent & royalties | PA Schedule M, Reconciliation of Federal Taxable Income to PA Taxable Income, Dividend, column f |
Classifying Federal Sales and Other Income
Federal net gains from disposal of section 179 property, if different from federal activity: Pennsylvania business income (Force)
The application calculates PA Schedule M, Reconciliation of Federal Taxable Income to PA Taxable Income, Net gains from disposal of section 179 property, columns b and e based on the activity entered in the detail asset data entry for assets sold. Use these boxes to enter a different amount than the calculated amount.
Federal net gains from disposal of section 179 property, if different from federal activity: Gain (loss) from sales (Force)
The application calculates PA Schedule M, Reconciliation of Federal Taxable Income to PA Taxable Income, Gain (loss) from the sales, columns b and e based on the activity entered in the detail asset data entry for assets sold. Use these boxes to enter a different amount than the calculated amount.
Type Code
in the statement can classify any item as instate or out-of-state on Schedule D. Type Code | Description | Destination |
|---|---|---|
I | PA | PA Schedule D, Page 1 |
O | Non-PA | PA Schedule D, Page 3 |
Federal section 1231 gain (loss), if different from federal activity: Pennsylvania business income (Force)
The application calculates PA Schedule M, Reconciliation of Federal Taxable Income to PA Taxable Income, Net section 1231 gain (loss), columns b and e based on the activity entered in the detail asset data entry for assets sold and the PAInstPY screen for prior-year installment sales. Use these boxes to enter a different amount than the calculated amount.
Federal section 1231 gain (loss), if different from federal activity: Gain (loss) from sales (Force)
An entry here will enter an amount on Schedule M, line 10e.
Type Code
in the statement can classify any item as instate or out-of-state on Schedule D. Type Code | Description | Destination |
|---|---|---|
I | PA | PA Schedule D, Page 1 |
O | Non-PA | PA Schedule D, Page 3 |
Federal other income to: Pennsylvania business income / … / Gain (loss) from sales
The statement contains all of the information entered on federal Schedule K, line 11.
Class Code
in the statement can classify any item as interest, business income, dividends, rent and royalty, PA gain or non PA gain. Select F4 to see a list of available codes. Additional amounts may be entered on a blank line. The available class codes for other income amounts are shown in the following table. Class Code | Description | Destination |
|---|---|---|
B | Business income (default) | PA Schedule M, Reconciliation of Federal Taxable Income to PA Taxable Income, Other income (loss), column b |
I | Interest | PA Schedule M, Reconciliation of Federal Taxable Income to PA Taxable Income, Other income (loss), column c |
D | Dividends | PA Schedule M, Reconciliation of Federal Taxable Income to PA Taxable Income, Other income (loss), column d |
R | Rent & royalties | PA Schedule M, Reconciliation of Federal Taxable Income to PA Taxable Income, Other income (loss), column f |
PG | PA Gain | PA Schedule M, Reconciliation of Federal Taxable Income to PA Taxable Income, Other income (loss), column e and Schedule D, Page 1 |
NG | Non PA Gain | PA Schedule M, Reconciliation of Federal Taxable Income to PA Taxable Income, Other income (loss), column e and Schedule D, Page 2 |