Get 2024 M1ls, Tax On Lump-sum Distribution. 2024 M1ls, Tax On Lump-sum Distribution

The 2024 M1LS, Tax On Lump-Sum Distribution form is essential for individuals who received lump-sum distributions from pension or profit-sharing plans. This guide will provide step-by-step instructions to help you accurately complete this form online.

Follow the steps to successfully complete the 2024 M1LS form.

1. Click ‘Get Form’ button to obtain the form and open it in the editor.
2. Begin by entering your first name, middle initial (if applicable), and last name in the corresponding fields. Ensure that the names are spelled correctly.
3. Provide your Social Security Number in the designated field. It's important to enter this correctly for processing.
4. Complete federal Form 4972 prior to this schedule, as it is required for determining the tax on your lump-sum distribution.
5. On line 1, enter the portion of your lump-sum distribution that is eligible for averaging, as provided from line 19 of federal Form 4972.
6. On line 2, if you completed Schedule M1R, refer to the instructions. If not, enter 0.
7. For line 3, subtract the value entered on line 2 from the value on line 1.
8. Multiply the result on line 3 by 20% (0.20) for line 4.
9. Using the tax table from the Form M1 instructions, identify the tax for the amount on line 4 and record this on line 5.
10. Multiply the tax amount from line 5 by 5 and enter it on line 6.
11. If applicable, complete lines 7 through 10; otherwise, skip to line 11.
12. For line 11, calculate the tax on the ordinary income portion of your lump-sum distribution by subtracting line 10 from line 6.
13. Check if you shared your lump-sum distribution with others and follow the additional requirements if necessary.
14. Once all entries are complete, review the form for accuracy. You can then save changes, download, print, or share the form.

Complete your 2024 M1LS form online to ensure accurate tax reporting.