Question

PA Schedule B Calculation of line 3.

Forum|Forum|6 years ago
April 24, 2020
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PA Schedule B Calculation of line 3. Are qualified corporate dividends taxable or tex exempt?

Employee

All corporate dividends , qualified or non-qualified, are taxable by PA. Line 3 is referring to dividends that exempt from PA tax. If you receive dividends from a mutual fund, and that fund derives income from investing in federal debt obligations such as Treasury Notes or Bonds, that portion of the dividends is exempt from PA income tax. Same holds true if the fund invests in PA sourced municipal bonds.