Amendment to PA-40 Schedule E change not-for-profit

When you begin your amendment, (see the instructions below before you begin) go to the Rental and Royalty Income section to see your Schedule E. If you selected it was not for profit, then it may not be there. If this is the case you need to remove the income from 'Other Income' and then create your Schedule E. You may need to use your 2024 tax return to add back your rental assets, etc. 

Usual process when you indicate your rental was 'not for profit':

Not Rented for Profit

If you don’t rent your property to make a profit, you can’t deduct rental expenses in excess of the amount of your rental income. You can’t deduct a loss or carry forward to the next year any rental expenses that are more than your rental income for the year.

Where to report. 

Report your not-for-profit rental income on Schedule 1 (Form 1040), line 8. If you itemize your deductions, include your mortgage interest and mortgage insurance premiums (if you use the property as your main home or second home), real estate taxes, from your not-for-profit rental activity when figuring the amount you can deduct on Schedule A.

Do not change your tax return until you read all the instructions. TurboTax needs to know the original numbers and the corrected numbers to provide the correct end results before you prepare it.

If you want to make changes or add a document to a tax return that has already been filed and accepted by the taxing agency, you should follow these guidelines. 

• You must first wait until the initial return is completely processed.
• You will have to use the same TurboTax account that you used for the original tax return.
• Once you begin your amendment, you'll see your original return.
• The refund calculator will start new at $0 and only reflect the changes in the refund or tax due
• Only make changes to the areas of your return that need to be corrected.
• You have three years from the date you filed your return or two years after you paid the tax due (whichever is later) to file an amendment

Amend a tax return for the current tax year

There is a check box on the right side of the PA-40 return. TurboTax will automatically mark this when you amend your tax return.

• PA-40 2025 Instructions (see page 6)