Pennsylvania Special Purpose Entities FAQ
No, the REV-1123 was submitted to the DOR prior to your K-1 being sent.
No, you do not need to submit your K-1 with your federal return. Our CPA, Trout CPA, has filed all K-1 documents with the IRS.
You will receive a state tax credit for 90% of your contribution. This cannot exceed your Pennsylvania tax liability. The additional 10% can be counted as a charitable contribution on your federal return.
I received a letter from the Pennsylvania Department of Revenue asking for the REV-1123. What do I need to do?
The REV-1123 was submitted to the Department of Revenue and recorded prior to your K-1 being sent. If you receive a letter, please email a copy to CTF_SPE@acsi.org and a CTF member will reach out to our contact at the state to have the issue resolved. If you are a participating business that received this letter and you are passing down credits to an individual, you must have submitted an REV-1123 from your business. Please email CTF_SPE@acsi.org and we can reach out to the state to see if this is the information that is needed.
On line 8 of the PA Schedule OC fill in the following: Credit Description Code – PT (credits are being received from a pass-through entity), Awardee Tax ID Number – Listed on page 1 of your K-1 in Part 1, Box A. This is the Partnerships employer identification number – Number 8 – enter the amount of credit you are utilizing that was passed through to you from the SPE.
If you are part of the Berks Christian School Scholarship Partners, LLC SPE you will fill in line 9 as this is an OSTC SPE.
You will need to submit your full K-1 document and complete a PA Schedule OC. Sample Schedule OC (link this to sample document)
If you are asked the following question when completing your return, you should be able to leave this blank and move on to the next question.
Special Purpose Entities have until March 15th to issue your K-1 tax document. Your K-1 will be sent via secure email usually by the end of February but no later than March 15th.
Information listing other credits when filing your return using Turbo Tax can be found here: https://ttlc.intuit.com/community/state-taxes/discussion/i-have-a-tax-credit-that-needs-to-be-filed-on-pennsylvania-schedule-oc-can-that-be-done-on-turbo-tax/00/1379977/amp
Due to the additional step of verifying the credits on your return you may find your tax-return takes longer for the state to process than before. Here are a few steps that you can take:
- You can check the status of your refund online at https://mypath.pa.gov/_/. Scroll down to the section “Refunds” and click on “Where is My Refund?”
- If you have not received your refund within 13 weeks, contact the PA Department of Revenue at 717-787-8201 to find out the status of your refund. This may help speed it along.