FORM 4972
Posted: 1-Apr-2022 11:12amTAXPAYER 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.
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.