We provide here a written summary of answers provided by the Department of Revenue to the committee at periodic question and answer sessions. These documents are classified as Revenue information issued for informational purposes only for the convenience of PICPA members. Pursuant to 61 Pa. Code Section 3.4, these documents should not be relied upon for any purpose or used in tax appeals. Taxpayers requiring a binding opinion on a specific fact situation may request a written letter ruling under 61 Pa. Code Section 3.3.
Q&A with the Pennsylvania Department of Revenue
Would the Department allow a credit on the PA-41 for a federal grantor trust for non-resident taxes paid to another state by the individual who is the grantor?
Would the Department allow a credit on the PA-41 for a federal grantor trust for non-resident taxes paid to another state by the individual who is the grantor? In this instance, the Pennsylvania taxpayer is the trust for resident state income tax purposes, but the individual grantor is the taxpayer on the same income that is taxable as non-resident source income in another state.
A resident credit would not be allowed in this instance. There are two different taxpayers in this example.