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Question

How to add a Form 4972 using Turbo Tax Business with a Form 1041 return?

Forum|Forum|1 year ago
February 16, 2025
2 replies
0 views

Was a previous question on this but the answer wasn't available.

Employee

Please clarify if the lump sum distribution was received by the trust/estate or paid to the beneficiaries?

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erl9Author

The distribution was received by the Trust. I found entering the income via the Form 4972 entry on schedule G resulted in a much lower distributed income to the beneficiaries rather than entering the income on the other income entry on the Form 1041. Seems like a better tax outcome using the 4972 form if that is valid.

Thanks.

@erl9 wrote:
Seems like a better tax outcome using the 4972 form if that is valid.

It would be valid if the distribution is a qualified lump-sum distribution.

See the Form 4972 instructions

How to add a Form 4972 using Turbo Tax Business with a Form 1041 return?

I'm fairly certain Turbotax Business does not support Form 4972 so, if you actually need it, you'll have to download it and mail it with your 1041 return package.

Form: https://www.irs.gov/pub/irs-pdf/f4972.pdf