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Level 2
posted Mar 12, 2023 8:03:46 AM

[Solved] Qualified dividends are not taxed in PA?

PA-40 Schedule B states that you should fill "Dividend income from Line 3b of your federal return". So qualified dividends are not included.

 

TurboTax does not seem to fill the amount of qualified dividends in other places of PA-40, either. So it appears that the qualified dividends are totally not taxed in PA-40. Is this really correct?

 

I tried to search the Internet, but didn't find any useful information about this topic. In addition, I cannot find any references to qualified dividends in the PA-40 instructions, either. Are qualified dividends really not taxed in PA?

 

 

Answer: The ordinary dividends amount already includes the qualified dividends.

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Level 2
Mar 12, 2023 8:12:33 AM

Turns out that the reason is because the ordinary dividends amount already includes qualified dividends.

1 Replies
Level 2
Mar 12, 2023 8:12:33 AM

Turns out that the reason is because the ordinary dividends amount already includes qualified dividends.