Why amounts from the federal Schedule C are not produced on 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/Print mode:

• Business profession, product, or service

• Business code (the NAICS code - see Drake Tax - 1040 - Schedule C - Business Activity Codes for details)

• 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 EF Message 0215 is produced

• PA Schedule C is not produced.

PA EF Message 0215 generates explaining that if the taxpayer is married and jointly owns a business with their spouse, they must complete separate Pennsylvania Schedules C. This is per guidance from the PA DOR and the PA-40 Schedule C Instructions which specify:

"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.