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FORM 4972

Technical topics regarding tax preparation.
#1
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153
Joined:
21-Feb-2015 9:44am
Location:
College Station, TX
TAXPAYER AS A BENEFICIARY (OF A PARENT WHO WAS BORN BEFORE 1936) RECEIVED A 1099-R FROM RETIREMENT SYSTEM WITH CODE 4A, I.E. MAY BE ELIGIBLE FOR 10 YEAR OPTION. IF THIS IS A DISTRIBUTION THAT IS ELIGIBLE TO BE CALCULATED ON FORM 4972, DO I NOT ENTER THE AMOUNTS IN BOX 1 AND 2A ON THE FORM 1040 AT ALL, BUT ONLY ENTER BOX 2A AMOUNT ON FORM 4972?

THERE WAS 20% WITHOLDING, SO I SUPPOSE I WOULD ENTER THIS ON THE 1099-R SCREEN?

I COMPLETED THE FORM 4972 IN OUR SOFTWARE AND THE RESULT WAS A TAX OF $1,360 ON A BOX 2A TAXABLE AMOUNT OF $31,275. DOES THAT SEEM RIGHT? TAXPAYER IS IN 22% TAX BRACKET WITH AND AND WITHOUT THE 1099-R. IF THIS WAS REPORTED WITH JUST A CODE 4, THE ADDITIONAL TAX WOULD BE ABOUT $5,500. SOUNDS TOO GOOD TO BE TRUE?

i WOULD APPRECIATE ANY COMMENTS.

THANK YOU.
 

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