deemed distribution

[Yianni52]

I recd a deemed distribution from a RIC...is it taxable in PA?

[DaveF1006]

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.

Pennsylvania does not follow federal rules that sometimes recharacterize certain RIC distributions differently. Instead, PA uses its own classification system, and under that system:

1. Dividends are taxable as PA “gross income class” dividend income.
2. PA does not allow deductions or adjustments against dividend income.
3. If the deemed distribution appears on a Form 1099‑DIV, it is almost always treated as a taxable dividend for PA PIT.

PA Dividends