Lump Sum Distribution

UC §59-10-114(1)(a)

Note:  This addition to income only applies if you filed form 4972 with your federal form 1040 for the current year.

The IRS taxes lump sum distributions on form 4972, with the tax on the distribution added to your regular income tax on form 1040. Because the income from the lump sum distribution is not included in federal adjusted gross income, you must add any distribution to Utah additions to income.

If you received a lump sum distribution and filed federal form 4972, enter the total of the amounts shown on federal form 4972 Part II, line 6 and Part III, line 10. Enter this total on Utah form TC-40A, Part 1, using code 51.

Keep a copy of federal form 4972 and any 1099-R forms showing the distribution with your records.

Shared Distributions

If you shared a lump sum distribution with other taxpayers, the amount you should enter on TC-40A, Part 1, using code 51, is calculated by multiplying the amount on federal form 4972, line 10 by the distribution percentage shown on your form 1099-R, box 9a, then adding to the result the amount shown on form 4972 Part II, line 6.