Line 7 no longer exists as a dedicated EITC line. Instead, use any blank row (1–10) on the new form. Write “EITC” in the Credit Type column, then fill in the remaining columns. The dollar amount goes in the Claim Amount column (the last column on the right).

These describe how you received the credit:

• CY (Current Year) — The credit was awarded directly to you
• PT (Pass-Through) — The credit came to you through a business entity (S-corp, partnership, LLC) — this is the most common for EITC donors
• PA (Purchased/Assigned) — You bought or were assigned the credit from another taxpayer
• CO (Carry Over) — You’re using a credit from a previous tax year that wasn’t fully used

Yes. Starting with tax year 2023, taxpayers and their spouses may file a joint return when either or both are claiming any credits on Schedule OC. Credits earned by one spouse can offset the tax liability of the other.

Restricted credits (including EITC) are nonrefundable. Per the Schedule OC instructions, your credits cannot exceed your tax liability after subtracting any resident credit and/or tax forgiveness credit. If the amount on Line 11 of Schedule OC would exceed that limit, the excess cannot be claimed. Consult a tax professional if you’re unsure how this applies to your return.

These come from the official approval or certification letter issued by the PA Department of Community and Economic Development (DCED). If the credit was passed through to you from a business entity, contact that entity — they should have the award letter. The form instructions note these fields as “If available,” so if you truly cannot obtain them, the form may still be processable, but including them helps avoid delays.

Most tax software has been updated for the 2025 form changes. Look for “Schedule OC” or “Other Credits” in the Pennsylvania section of your software. The software should prompt you for the Credit Type, Award Source, and other fields. If your software hasn’t been updated yet, check for updates or consider filing through PA’s free myPATH system at mypath.pa.gov.

If your credit came through a pass-through entity (most EITC credits do), the Awardee Tax ID is the entity’s FEIN (Federal Employer Identification Number). You’ll find this at the top of your PA Schedule RK-1 in the entity identification section. For EITC/OSTC passed through multiple tiers, use the FEIN of the original entity that received the credit.

Listing the credit on your RK-1 is NOT sufficient to pass through the credit. The entity must also contact the Bureau of Business Taxpayer Accounting, Account Maintenance Corporation Tax Division to formally pass through the credit. Contact the entity and ask them to verify they completed this step. The contact information is on the credit award letter.

Refunds involving restricted tax credits often take longer because the Department needs to verify: (1) the award from DCED, (2) the pass-through form allocating the credit, and (3) the tax return from the entity that was awarded the credit. Many entities don’t file until fall (on extension), so there may be a delay. The Department will pay interest on the refund amount owed.

Yes — new for 2025, taxpayers and tax practitioners can electronically request a Summary of Restricted Credits through myPATH (mypath.pa.gov). The summary is provided as a PDF in the Letters section, available the same business day. A more detailed Statement of Account is also available.

If you see EITC credits on Line 9 of your PA Schedule RK-1, it means a business entity you’re connected to — either as an owner or through a Special Purpose Entity (SPE) you joined — received Educational Improvement Tax Credits and passed a portion through to you. For questions about the EITC program itself, how you became eligible, or how your contribution was structured, contact the entity that issued your RK-1 or visit the DCED EITC program page at dced.pa.gov. This guide focuses only on how to report that credit on your Schedule OC.

An SPE is a type of LLC that some individuals participate in to receive EITC/OSTC credits. If your RK-1 came from an SPE, the form-filling process is identical to any other pass-through entity — use “PT” as the Award Source code and the SPE’s FEIN as the Awardee Tax ID. There is no difference on Schedule OC between credits received via an SPE versus a regular business entity.

Potentially yes, if you have Pennsylvania-source income (meaning you’re an owner in a PA business that generates PA-source income). In that case, you’d receive a PA Schedule NRK-1 (the nonresident version) instead of an RK-1. Your credit amount appears on Line 7 of the NRK-1 (labeled “Total Other Credits”) rather than Line 9. The process for filling out Schedule OC is the same — you just pull your numbers from the NRK-1 instead of the RK-1. This is relatively uncommon. Consult a tax professional to confirm your eligibility.

Pennsylvania has its own K-1 forms that are completely separate from the federal Schedule K-1. The PA Schedule RK-1 (for residents) and NRK-1 (for nonresidents) use Pennsylvania’s own income classifications and credit reporting. PA does NOT accept the federal K-1 as a substitute. When looking through your tax documents from the pass-through entity, make sure you’re looking at the form labeled “PA-20S/PA-65 Schedule RK-1” — not the federal Form 1065 Schedule K-1.

Yes. Since tax year 2023, Pennsylvania allows joint filers to combine their credits on a single Schedule OC. If only one spouse has an EITC credit on their RK-1, the other spouse’s tax liability can still be offset by that credit when filing jointly. Both spouses’ credits and liabilities are combined on one return. Only the spouse whose name is on the RK-1 enters the credit information on Schedule OC — but the benefit applies to the joint return as a whole.