I have listed my lottery winnings on Line 8 of the PA-40. Do I have to also list them on the Tax Forgiveness Schedule SP? If I list them on the SP I do not get forgiveness. But since they are already listed on Line 8 of the PA 40 I think it is being counted twice? Please advise! Thank you!
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Yes, you only need to list the income on the PA 40 line 8 as normal. The lottery winnings are then part of the taxable income on line 9 which flows to line 1 of the Schedule SP. You do not add the amount again on any lines below line 1 on the SP as those are only for non-taxable items not in line 1.
Thank you so much!! I missed the words "non taxable" on the SP. Makes perfect sense! Thanks again!
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