What Is PA Schedule NRH and Who Needs to File It?
Learn about PA Schedule NRH, its filing requirements, covered income types, necessary documents, and how to handle errors and deadlines.
Navigating state tax requirements can be complex, and Pennsylvania Schedule NRH is a form designed for certain taxpayers to report specific income. This schedule ensures compliance with Pennsylvania’s tax regulations, particularly for individuals with income from Pennsylvania sources who reside elsewhere.
Who Must File This Schedule
Pennsylvania Schedule NRH is required for nonresident individuals earning income from Pennsylvania sources. These include those who do not live in the state but have financial interests or business operations generating taxable income within its borders. For instance, a New York resident with rental property in Philadelphia must file this schedule to report rental income. Nonresidents are subject to Pennsylvania’s flat personal income tax rate of 3.07% as of 2024.
Types of Income Covered
This schedule applies to various types of Pennsylvania-sourced income. These include compensation from employment, business income from partnerships or sole proprietorships, and investment income such as dividends and interest from Pennsylvania entities. It also covers capital gains from selling Pennsylvania-based assets and rental income from properties within the state. For example, a nonresident selling property located in Pennsylvania must report any resulting capital gains on this schedule.
Filing Steps
Filing Pennsylvania Schedule NRH requires gathering all documentation related to income earned within the state. Relevant income statements, such as W-2s, 1099 forms, or K-1 forms for partnerships or S-corporations, should be collected. Understanding the specific sections of Schedule NRH that correspond to different income types is essential. Taxpayers should also evaluate potential deductions or credits, such as unreimbursed business expenses, if they meet eligibility criteria.
Required Documents
Proper documentation is critical for a smooth filing process. Collect income statements for all Pennsylvania-sourced earnings, such as rental income reports, business income summaries, and investment earnings. Maintain records of any expenses related to generating this income, particularly if they qualify for deductions under Pennsylvania tax laws. For example, travel expenses for business operations in Pennsylvania should be supported with receipts and logs.
Handling Errors or Corrections
Errors on Pennsylvania Schedule NRH can lead to penalties or delays. If a mistake is discovered after filing, an amended return can be submitted. To amend, complete a new PA-40 return marked “Amended” and include the corrected Schedule NRH along with any supporting documentation. If the amendment results in an overpayment, a refund can be requested within the statute of limitations, generally three years from the original filing date. Be aware that interest may accrue on unpaid taxes from the original due date.
Due Dates and Potential Penalties
Schedule NRH is due by the same deadline as the PA-40 Personal Income Tax Return, typically April 15 for calendar-year taxpayers. If the deadline falls on a weekend or holiday, it is extended to the next business day. Taxpayers needing extra time can request an extension using Form REV-276, which grants an additional six months to file. However, an extension to file does not extend the deadline for paying taxes owed.
Failure to file on time may result in a 5% late-filing penalty per month on unpaid taxes, up to a maximum of 25%. Additionally, a late-payment penalty of 0.5% per month applies, also capped at 25%. Noncompliance may trigger audits or assessments by the Pennsylvania Department of Revenue, potentially increasing tax liabilities.