Get Form It-230 Separate Tax On Lump-sum Distributions Tax Year 2021

Filling out Form IT-230 is essential for those who received lump-sum distributions and wish to report their tax obligations accurately. This guide provides clear, step-by-step instructions for completing this form online, ensuring you understand each section and field.

Follow the steps to complete Form IT-230 accurately online.

1. Press the ‘Get Form’ button to obtain the form and access it in your browser.
2. Enter your name as it appears on your tax return in the designated field.
3. Provide your identification number; this is typically your Social Security number.
4. In Part 1, indicate if you used federal Form 4972 to determine your federal tax on lump-sum distributions. Select 'Yes' if applicable or 'No' if not.
5. If you answered 'Yes', ensure to submit Form IT-230 along with a copy of federal Form 4972 with your tax return (Form IT-201, IT-203, or IT-205).
6. Complete Part 2 if applicable, entering the capital gain figure from federal Form 4972, Part II, line 6. Multiply this number by the appropriate tax rate based on your residency.
7. If you are completing Part 3 and were a resident or part-year resident, fill in the information related to the taxable amounts and any applicable exclusions as prompted.
8. Calculate any necessary adjustments following the instructions provided in the form.
9. Review all the information for accuracy, ensuring calculations are correct and all fields are completed as required.
10. Once content, save your changes, then download, print, or share the completed form as necessary.

Start completing your Form IT-230 online today to ensure accurate tax reporting on lump-sum distributions.