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Screen PAM2 - Pennsylvania Reportable Income or Loss by Classification (1120)

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Adjustments Increasing Pennsylvania Income

Separately allocating income, separate books and records, and no transactions between businesses
Enter
X
if the entity is separately allocating its income, keeps separate books and records for financial purposes, and there have been no transactions between multiple businesses.

Federal Expenses Not Allowed In Pennsylvania

Taxes paid on income
All information entered in federal Screen Inc for taxes transfers to the statement attached to this field. Use the
Type
 field in the statement dialog to include any item from the total amount. The available type codes are listed in the list and in the following table.
Type
Form Description
1
1120S, Line 12 Net Income Tax (default)
2
1120S, Line 12 Tax Not based on Income
3
Schedule A Net Income Tax
4
Schedule A Tax Not Based on Income

Expenses Not Deducted On Federal Allowed In Pennsylvania

Business meals not deducted on federal (Force)
The application calculates the amount of meals and entertainment expense not taken in arriving at federal ordinary income and completes PA Schedule M, Section F. Enter an amount to use in place of the calculated amount.
Non-discriminatory shareholder health insurance not included in W-2 wages
Certain non-discriminatory shareholder health insurance amounts may be deducted on Schedule M, Section F.
Enter
X
 if the shareholder health insurance qualifies as a deduction for Pennsylvania purposes, and the health insurance is treated as a nondeductible expense for federal purposes. When the field is marked, the application uses the amount of shareholder health insurance as a deduction on Schedule M, Section F and does not include the amount in nondeductible expenses.
If shareholder health insurance is treated as a supplemental other amount for federal purposes, it is treated the same for Pennsylvania. The amount is not included in income or as a nondeductible expense.
If shareholder health insurance is treated as a nondeductible expense for federal purposes and is nondeductible for Pennsylvania as well, shareholder health insurance is not deducted on Schedule M. It is included on the shareholder’s Schedule RK-1/NRK-1 and shareholder basis worksheet as a nondeductible expense.
Expense adjustments to qualify for federal credits (Force)
The application transfers the portion of federal 1120, Page 1, wage expense that was reduced by federal credits to PA Schedule M. Enter an amount to use in place of the calculated amount.
Current expensing of intangible drilling costs
Enter an amount for Pennsylvania source intangible drilling costs when separately allocating income. The total amount of intangible drilling costs automatically transfers from Schedule I, Amortization of Intangible Drilling Costs, Part B, line 5.
note
It is not necessary to enter an amount when there is apportionment income on Schedule H.

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