Fillable Tax On Lump-Sum Distributions (Form 4972 2013) (Page 4 of 4) in pdf

Page

Form 4972 (2013)

Part II

Tax Rate Schedule

ordinary income portion is the amount from

Form 1099-R, box 2a, minus the amount

If the amount on

Enter on line

See Capital Gain Election earlier before

from box 3 of that form. Add the amount

line 23 or 26 is:

24 or 27:

completing Part II.

from line F of the NUA Worksheet if you

Of the

Line 6. Leave this line blank if your

included NUA capital gain in the 20%

But not

amount

distribution does not include a capital gain

capital gain election.

Over

over—

amount or you are not making the 20%

If you did not make the 20% capital gain

$ 0

$ 1,190

- - - - - 11%

$ 0

capital gain election, and go to Part III.

election and did not elect to include NUA in

1,190

2,270

$130.90 + 12%

1,190

Generally, enter on line 6 the amount

taxable income, enter the amount from

from Form 1099-R, box 3. However, if you

2,270

4,530

260.50 + 14%

2,270

Form 1099-R, box 2a. If you did not make

elect to include NUA in your taxable

the 20% capital gain election but did elect

4,530

6,690

576.90 + 15%

4,530

income, use the NUA Worksheet earlier to

to include NUA in your taxable income, add

6,690

9,170

900.90 + 16%

6,690

figure the amount to enter on line 6. If you

the amount from Form 1099-R, box 2a, to

are taking a death benefit exclusion (for a

9,170

11,440

1,297.70 + 18%

9,170

the amount from Form 1099-R, box 6.

participant who died before August 21,

Enter the total on line 8. On the dotted line

11,440

13,710

1,706.30 + 20%

11,440

1996), use the Death Benefit Worksheet

next to line 8, write “NUA” and the amount

13,710

17,160

2,160.30 + 23%

13,710

earlier to figure the amount to enter on line

of NUA included.

6. The remaining allowable death benefit

17,160

22,880

2,953.80 + 26%

17,160

▲

exclusion should be entered on line 9 if you

Community property laws do

22,880

28,600

4,441.00 + 30%

22,880

choose the 10-year tax option.

not apply in figuring tax on the

28,600

34,320

6,157.00 + 34%

28,600

amount you report on line 8.

If any federal estate tax was paid on the

CAUTION

34,320

42,300

8,101.80 + 38%

34,320

lump-sum distribution, you must decrease

42,300

57,190

11,134.20 + 42%

42,300

the capital gain amount by the amount of

Line 9. If you received the distribution

estate tax applicable to it. To figure this

because of the plan participant’s death and

57,190

85,790

17,388.00 + 48%

57,190

amount, you must complete the Death

the participant died before August 21,

85,790

- - - - -

31,116.00 + 50%

85,790

Benefit Worksheet earlier through line C,

1996, you may be able to exclude up to

even if you do not take the death benefit

Paperwork Reduction Act Notice. We

$5,000 of the lump sum from your gross

exclusion. Multiply the total federal estate

income. If there are multiple recipients of

ask for the information on this form to carry

tax paid on the lump-sum distribution by

the distribution not all of whom are trusts,

out the Internal Revenue laws of the United

the decimal on line C of the Death Benefit

enter on line 9 the full remaining allowable

States. You are required to give us the

Worksheet. The result is the portion of the

death benefit exclusion (after the amount

information. We need it to ensure that you

federal estate tax applicable to the capital

taken against the capital gain portion of the

are complying with these laws and to allow

gain amount. Then, use that result to

distribution by all recipients—see the

us to figure and collect the right amount of

reduce the amount in Form 1099-R, box 3,

instructions for line 6) without allocation

tax.

if you do not take the death benefit

among the recipients. (The exclusion is in

You are not required to provide the

exclusion, or reduce line F of the Death

effect allocated among the recipients

information requested on a form that is

Benefit Worksheet if you do. Enter the

through the computation under Multiple

subject to the Paperwork Reduction Act

remaining capital gain on line 6. If you

recipients of a lump-sum distribution

unless the form displays a valid OMB

elected to include NUA in taxable income,

earlier.) This exclusion applies to the

control number. Books or records relating

subtract the portion of federal estate tax

beneficiaries or estates of common-law

to a form or its instructions must be

applicable to the capital gain amount from

employees, self-employed individuals, and

retained as long as their contents may

the amount on line G of the NUA

shareholder-employees who owned more

become material in the administration of

Worksheet. Enter the result on line 6. Enter

than 2% of the stock of an S corporation.

any Internal Revenue law. Generally, tax

the remainder of the federal estate tax on

Enter the allowable death benefit

returns and return information are

line 18.

exclusion on line 9. But see the instructions

confidential, as required by section 6103.

for line 6 if you made a capital gain

▲

If you take the death benefit

The time needed to complete this form

election.

exclusion and federal estate tax

will vary depending on individual

was paid on the capital gain

Line 18. A beneficiary who receives a

circumstances. The estimated burden for

CAUTION

amount, the capital gain amount

lump-sum distribution because of a plan

individual taxpayers filing this form is

participant’s death must reduce the taxable

approved under OMB control number

must be reduced by both the procedures

part of the distribution by any federal

1545-0074 and is included in the estimates

discussed above to figure the correct entry

estate tax paid on the lump-sum

shown in the instructions for their individual

for line 6.

distribution. Do this by entering on line 18

income tax return. The estimated burden

Part III

the federal estate tax attributable to the

for all other taxpayers who file this form is

lump-sum distribution. Also see the

shown below.

Line 8. If Form 1099-R, box 2a, is blank,

instructions for line 6 if you made a capital

you must first figure the taxable amount.

Recordkeeping .

. 19 min.

gain election.

For details on how to do this, see Pub. 575.

Learning about the law

Lines 24 and 27. Use the following Tax

If you made the 20% capital gain

or the form

. 1 hr., 36 min.

Rate Schedule to complete lines 24 and 27.

election, enter only the ordinary income

Preparing the form .

2 hr., 7 min.

portion of the distribution on this line. The

Copying, assembling, and

sending the form to the IRS .

. 20 min.

If you have comments concerning the

accuracy of these time estimates or

suggestions for making this form simpler,

we would be happy to hear from you. See

the instructions for the tax return with

which this form is filed.

Tax On Lump-Sum Distributions (Form 4972 2013) Page 4

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