https://ttlc.intuit.com/community/state-taxes/discussion/re-deemed-distribution/01/3825202#M186525 <P><SPAN style="font-size:14px;">Yes, it is taxable. A deemed distribution from a RIC (Regulated Investment Company) is generally treated the same as a dividend for Pennsylvania tax purposes.</SPAN></P> <P>&nbsp;</P> <P>Pennsylvania does <STRONG>not</STRONG> follow federal rules that sometimes recharacterize certain RIC distributions differently. Instead, PA uses its own classification system, and under that system:</P> <P>&nbsp;</P> <OL> <LI><STRONG>Dividends are taxable</STRONG> as PA “gross income class” dividend income.</LI> <LI>PA does <STRONG>not</STRONG> allow deductions or adjustments against dividend income.</LI> <LI>If the deemed distribution appears on a <STRONG>Form 1099‑DIV</STRONG>, it is almost always treated as a taxable dividend for PA PIT.</LI> </OL> <P><A href="https://www.pa.gov/agencies/revenue/forms-and-publications/pa-personal-income-tax-guide/dividends?utm_source=copilot.com" target="_blank">PA Dividends</A></P> Mon, 09 Mar 2026 13:17:23 GMT DaveF1006 2026-03-09T13:17:23Z https://ttlc.intuit.com/community/state-taxes/discussion/deemed-distribution/01/3825192#M186524 <P>I recd a deemed distribution from a RIC...is it taxable in PA?</P> Mon, 09 Mar 2026 13:08:00 GMT https://ttlc.intuit.com/community/state-taxes/discussion/deemed-distribution/01/3825192#M186524 Yianni52 2026-03-09T13:08:00Z https://ttlc.intuit.com/community/state-taxes/discussion/re-deemed-distribution/01/3825202#M186525 <P><SPAN style="font-size:14px;">Yes, it is taxable. A deemed distribution from a RIC (Regulated Investment Company) is generally treated the same as a dividend for Pennsylvania tax purposes.</SPAN></P> <P>&nbsp;</P> <P>Pennsylvania does <STRONG>not</STRONG> follow federal rules that sometimes recharacterize certain RIC distributions differently. Instead, PA uses its own classification system, and under that system:</P> <P>&nbsp;</P> <OL> <LI><STRONG>Dividends are taxable</STRONG> as PA “gross income class” dividend income.</LI> <LI>PA does <STRONG>not</STRONG> allow deductions or adjustments against dividend income.</LI> <LI>If the deemed distribution appears on a <STRONG>Form 1099‑DIV</STRONG>, it is almost always treated as a taxable dividend for PA PIT.</LI> </OL> <P><A href="https://www.pa.gov/agencies/revenue/forms-and-publications/pa-personal-income-tax-guide/dividends?utm_source=copilot.com" target="_blank">PA Dividends</A></P> Mon, 09 Mar 2026 13:17:23 GMT https://ttlc.intuit.com/community/state-taxes/discussion/re-deemed-distribution/01/3825202#M186525 DaveF1006 2026-03-09T13:17:23Z