In an individual return, why is my Federal Schedule C not generating a PA Schedule C in View/Print mode?
Three entries on the Federal Schedule C are required for a PA Schedule C to be generated in view mode:
- Business code (the NAICS code)
- Business name
If the resident state on federal screen 1 is something other than PA, and the Schedule C is supposed to flow to Pennsylvania, you must also select PA in the ST drop list on the federal C screen in order for the information to be carried to the PA Schedule C. This drop list defaults to the resident state if nothing is selected.
Qualified Joint Venture
If the federal C screen has a J in the TS drop list and the ST code is PA (or blank and the resident state on federal screen 1 is PA) then
- PA MSG 0215 is produced, and
- PA Schedule C is not produced.
PA red message 0215 states:
If you are married and you jointly owned the business with your spouse, you must complete separate PA Schedule Cs.
This is done per guidance from the PA DOR and the PA-40 Schedule C Instructions which state:
"Pennsylvania is not a community property state. Therefore, for PA personal income tax purposes, a taxpayer and the taxpayer’s spouse must each report on a separate PA Schedule C their share of income from a business entity they own that is considered a qualified joint venture for federal income tax purposes."
"If you are married and you jointly owned the business with your spouse, you must complete separate PA Schedule C’s. If you and your spouse have separate business activities, complete separate PA Schedule(s) C."
For more assistance, see the PA-MSG and PANOTES pages.
Note that J is not a valid selection for the federal return either on the C screen. See Related Links below for details on entering a qualified joint venture in Drake Tax.