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PA Tax Return

jamessite
Level 3

I am filing for a non-resident of PA. He has student loan interest on his federal return. It appears that PA is allowing student loan interest to be part of his return, but he is a non-resident. I want to know if it is deductible on a non-resident return. Student loan interest was only recently allowed in PA, but is it also allowed for non-residnets.

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GodFather
Level 8
Level 8

Yes...a search indicates ProSeries is correct in allowing the deduction:

Yes, Pennsylvania (PA) nonresidents can generally deduct student loan interest from their PA taxable income starting with the 2024 tax year (for returns filed in 2025).

 
While Pennsylvania historically did not allow most federal adjustments to income, recent legislation (Act 56 of 2024) introduced a state-level deduction for student loan interest.
 
Key Rules for Nonresidents
  • Deduction Limit: You can deduct up to $2,500 of qualified student loan interest.
  • Reporting: For the 2024 tax year and beyond, this deduction is reported on PA Schedule O (Other Deductions).