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Ohio Free Printable pit_lumpsum for 2020 Ohio Ohio Individual Income Tax Lump Sum Distribution Instructions

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Ohio Individual Income Tax Lump Sum Distribution Instructions
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LS WKS Rev. 1/18 10211411  Ohio Individual Income Tax Lump Sum Credit Instructions Ohio Revised Code Sections 5747.05 and 5747.055 The following information explains how the lump sum retirement credit and the lump sum distribution credit are calculated for recipients of a qualifying lump sum distribution. You may be able to claim both credits for the same year. Example A – Lump Sum Retirement Credit Calculation A taxpayer retires in 2017 and is 59 years old at the end of 2017. The taxpayer receives a $60,000 lump sum retirement distribution, all of which is included in their Ohio adjusted gross income. The taxpayer’s lump sum retirement credit is computed as follows: Important: For tax years 2015 and later, both of these credits are only available to taxpayers whose adjusted gross income less exemptions (Ohio IT 1040, line 5) is less than $100,000. Lump sum distribution defined (see Internal Revenue Code [I.R.C.] section 402(e)(4)(D)) – A lump sum distribution is the payment of the employee’s entire balance from either his/her employer’s qualified pension plan, his/her employer’s qualified stock bonus plan or his/her employer’s qualified profit-sharing plan. The balance need not be distributed in one payment but must be fully paid out within one taxable year to the recipient in order for the distribution to qualify as a lump sum distribution. Furthermore, to qualify as a lump sum distribution, the distribution must have been made: 1. because of the participant’s death; OR 2. because of the participant’s separation from service (for this purpose, a self-employed person is not considered an employee); OR $60,000 lump sum distribution in Ohio adjusted gross income 25 years remaining life (Table 2 on page 3) = $2,400 (amount of qualifying retirement income) For $2,400, $50 is the corresponding credit (Table 1 on page 3). Then, $50 x 25 years = $1,250 (lump sum retirement credit). If the tax on line 1 of the Ohio Schedule of Credits is $800, the taxpayer would compute the future annual retirement credit as follows: $ 1,250 -800 $ 450 ÷ (25 - 1) $ 18.75 lump sum retirement credit tax due unused amount remaining life (years minus one) future lump sum retirement credit (round to $19) 3. after the participant (only if self-employed) becomes disabled as defined in I.R.C. section 72(m)(7). No annual retirement credit can be claimed on a future return to which the taxpayer is a party. Note: Distributions from university retirement plans (see I.R.C. section 403(b)) and from government deferred compensation plans (see I.R.C. section 457) do not qualify for either the lump sum retirement credit or the lump sum distribution credit because these plans are not described in I.R.C. section 401(a). II. Lump Sum Distribution Credit R.C. section 5747.055 (G) This credit is taken in lieu of the $50 senior citizen credit. To be eligible for the lump sum distribution credit, the recipient of the qualifying lump sum distribution must be age 65 or older in the year of receipt. It is not necessary for any portion of the distribution to be included in Ohio adjusted gross income to qualify for this credit. I. Lump Sum Retirement Tax Credit Ohio Revised Code (R.C.) sections 5747.055 (C), (D), (E) This credit is taken in lieu of the annual retirement credit. The credit is $50 times the recipient’s remaining life years as determined from Table 2 on page 3. No senior citizen credit can be claimed on a future return to which the taxpayer is a party. To be eligible for the lump sum retirement credit, the lump sum distribution must have been received on account of retirement and a portion of the distribution must be included in Ohio adjusted gross income reported on the Ohio IT 1040, line 3. If the entire distribution is rolled over into an Individual Retirement Account (IRA) or into another retirement plan trust, no lump sum retirement credit is available. If a portion of the distribution is rolled over, only the portion included in Ohio adjusted gross income may be used to calculate the lump sum retirement credit. *The U.S. Sixth Circuit Court of Appeals, which has jurisdiction over Ohio, has determined that actual separation of service may occur as a result of an employer’s liquidation, merger or consolidation. -1- LS WKS Rev. 1/18 Page 2 10211411  Ohio Lump Sum Retirement/Distribution Credit Worksheet Name: Year: SSN: This worksheet is for the Ohio lump sum credits found on the Ohio Schedule of Credits. Include both pages of this worksheet with your Ohio IT 1040 and the Ohio Schedule of Credits if you are taking either of the Ohio lump sum credits. Also include copies of all your 1099-R forms. Section I – Income Test for Tax Years 2015 and Later If you are completing this worksheet for a tax year prior to 2015, you may skip this question and start with Section II. Yes No  1. Is your adjusted gross income less exemptions (Ohio IT 1040, line 5) less than $100,000?....................... 1.  If you answered “No” to the above question, STOP. You are not eligible for either of the Ohio lump sum credits. If you answered “Yes,” continue to Section II. Section II – Determine If You Have a Qualified Lump Sum Distribution 1. Was the lump sum distributed from a qualified employee benefit plan, such as a pension, profit-sharing, stock bonus, Keogh, IRC 401(k), STRS, PERS, SERS?.............................................................................. 1. 2. Was the distribution the employee’s entire balance in the account?............................................................. 2. 3. Was the distribution paid within a single taxable year?................................................................................. 3. 4. Was the distribution made because either (a) the employee died, quit, retired, was laid off, fired, or was age 59.5 or older, or (b) the taxpayer was self-employed and became permanently and totally disabled?......4. Yes No         If you answered “No” to any of the four questions above, STOP. You are not eligible for either of the Ohio lump sum credits. If you answered “Yes” to all four questions, you may be eligible for one or both of the Ohio lump sum credits. Please proceed to Sections III and IV. Section III – Determine Eligibility for and Calculate the Lump Sum Retirement Credit Complete sections I and II before completing this section. This credit is for taxpayers who have received a qualified lump sum distribution on account of retirement and have included a portion of it in the calculation of line 3 of the Ohio income tax return, IT 1040. This credit is taken in lieu of the annual retirement credit that would be taken in the same tax year. Yes No  1. Did you receive the lump sum distribution on account of retirement?........................................................... 1.  2. Is all or some portion of the distribution included in your Ohio adjusted gross income on line 3 of the  Ohio IT 1040?............................................................................................................................................... 2.  If you answered “Yes” to both of the above questions, you are eligible for the lump sum retirement credit. Calculate the credit as follows: 1. Amount of retirement income (non-lump sum retirement income, if any, and lump sum distribution(s) included in Ohio adjusted gross income on the Ohio IT 1040, line 3..............1. $ 2. Lump sum distribution recipient’s age at the end of the taxable year of the distribution........2. 3. “Multiple” from Table 2 (page 3) based on the age entered on line 2.....................................3. 4. Divide line 1 by line 3.............................................................................................................4. $ 5. Retirement income credit from Table 1 (page 3) based on the amount on line 4...................5. $ 6. Lump sum retirement credit (line 3 times line 5). Enter here and on the “lump sum retirement credit” line on the Ohio Schedule of Credits.........................................................6. $ If the lump sum retirement credit exceeds the tax due, complete line 7; if not, stop here. 7. Future retirement credit carryforward to subsequent taxable years a) Ohio tax due (line 1 on the Ohio Schedule of Credits)....................................................7a. $ b) Unused amount (line 6 minus line 7a). If 0 or less, stop here..........................................7b. $ c) Line 3 minus 1 year.........................................................................................................7c. d) Future annual retirement credit carryforward amount (line 7b divided by line 7c)...........7d. $ If the lump sum retirement credit is used in its entirety, no lump sum retirement income credit or annual retirement income credit can be claimed on any future Ohio IT 1040 return to which the taxpayer is a party. Enclose both pages of this worksheet and all of your 1099-R forms with your Ohio IT 1040. -2- LS WKS Rev. 1/18 Page 3 10211411  Ohio Lump Sum Retirement/Distribution Credit Worksheet Section IV – Determine Eligibility for and Calculate the Lump Sum Distribution Credit Complete sections I and II before completing this section. This credit is for taxpayers who have received a qualified lump sum distribution and are age 65 or older in the current tax year. This credit is taken in lieu of the senior citizen credit that would be taken in the same tax year. A taxpayer may qualify for the credit even if s/he does not report any portion of the lump sum distribution in his/her Ohio adjusted gross income on line 3 of the Ohio IT 1040. Yes No  1. Were you at least 65 years old by the end of the taxable year of the distribution?....................................... 1.  If you answered “Yes” to the above question, you are eligible for the lump sum distribution credit. Calculate the credit as follows: 1. Lump sum distribution recipient’s age at the end of the taxable year of the distribution........1. 2. “Multiple” from Table 2 (page 3) based on the age entered on line 1.....................................2. 3. Lump sum distribution credit (line 2 times $50; cannot exceed $1,000). Enter here and on the “lump sum distribution credit” line on the Ohio Schedule of Credits...........................3. $ If the lump sum distribution credit is used, no lump sum distribution credit or senior citizen credit can be claimed on any future Ohio IT 1040 return to which the taxpayer is a party. However, claiming the lump sum distribution credit on the Ohio IT 1040 return does not make the taxpayer ineligible for the senior citizen credit available on the SD 100 return. Enclose both pages of this worksheet and all of your 1099-R forms with your Ohio IT 1040. Table 1 – Retirement Income Credit Table Amount of qualifying retirement income received and included in Ohio adjusted gross income during the taxable year Retirement income credit for the taxable year $ 500 or less 0 Over $ 500, but not more than $1,500 $ 25 Over $1,500, but not more than $3,000 $ 50 Over $3,000, but not more than $5,000 $ 80 Over $5,000, but not more than $8,000 $130 Over $8,000, but not more than $8,000 $200 Table 2 – Unisex Table Ordinary Life Annuities One Life – Expected Return Multiples (This life annuity table is to be used for distributions received on or after July 1, 1986.) Age Multiple 5 76.6 6 75.6 7 74.7 8 73.7 9 72.7 10 71.7 11 70.7 12 69.7 13 68.8 14 67.8 15 66.8 16 65.8 17 64.8 18 63.9 19 62.9 20 61.9 21 60.9 22 59.9 23 59.0 Age Multiple 24 58.0 25 57.0 26 56.0 27 55.1 28 54.1 29 53.1 30 52.2 31 51.2 32 50.2 33 49.3 34 48.3 35 47.3 36 46.4 37 45.4 38 44.4 39 43.5 40 42.5 41 41.5 42 40.6 Age Multiple 43 39.6 44 38.7 45 37.7 46 36.8 47 35.9 48 34.9 49 34.0 50 33.1 51 32.2 52 31.3 53 30.4 54 29.5 55 28.6 56 27.7 57 26.8 58 25.9 59 25.0 60 24.2 61 23.3 Age Multiple 62 22.5 63 21.6 64 20.8 65 20.0 66 19.2 67 18.4 68 17.6 69 16.8 70 16.0 71 15.3 72 14.6 73 13.9 74 13.2 75 12.5 76 11.9 77 11.2 78 10.6 79 10.0 80 9.5 -3- Age Multiple 81 8.9 82 8.4 83 7.9 84 7.4 85 6.9 86 6.5 87 6.1 88 5.7 89 5.3 90 5.0 91 4.7 92 4.4 93 4.1 94 3.9 95 3.7 96 3.4 97 3.2 98 3.0 99 2.8 Age Multiple 100 2.7 101 2.5 102 2.3 103 2.1 104 1.9 105 1.8 106 1.6 107 1.4 108 1.3 109 1.1 110 1.0 111 0.9 112 0.8 113 0.7 114 0.6 115 0.5
Extracted from PDF file 2019-ohio-form-ls-wks.pdf, last modified January 2018

More about the Ohio Form LS WKS Individual Income Tax TY 2019

We last updated the Ohio Individual Income Tax Lump Sum Distribution Instructions in January 2020, so this is the latest version of Form LS WKS, fully updated for tax year 2019. You can download or print current or past-year PDFs of Form LS WKS directly from TaxFormFinder. You can print other Ohio tax forms here.

Other Ohio Individual Income Tax Forms:

TaxFormFinder has an additional 82 Ohio income tax forms that you may need, plus all federal income tax forms.

Form Code Form Name
Form IT 1040 Ohio Individual Income Tax Return
Form IT 1040ES Income Tax Estimated Payment Vouchers and Instructions
Form IT 1040EZ Ohio Individual Income Tax EZ Return
Form IT 40P Income Tax Payment Voucher
Form IT SD 100 Individual Income and School District Income Tax Publication

Download all OH tax forms View all 83 Ohio Income Tax Forms


Form Sources:

Ohio usually releases forms for the current tax year between January and April. We last updated Ohio Form LS WKS from the Department of Taxation in January 2020.

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About the Individual Income Tax

The IRS and most states collect a personal income tax, which is paid throughout the year via tax withholding or estimated income tax payments.

Most taxpayers are required to file a yearly income tax return in April to both the Internal Revenue Service and their state's revenue department, which will result in either a tax refund of excess withheld income or a tax payment if the withholding does not cover the taxpayer's entire liability. Every taxpayer's situation is different - please consult a CPA or licensed tax preparer to ensure that you are filing the correct tax forms!

Historical Past-Year Versions of Ohio Form LS WKS

We have a total of seven past-year versions of Form LS WKS in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:


2016 Form LS WKS

PIT_LumpSum_GEN_FS_121715.indd

2015 Form LS WKS

PIT_LumpSum_GEN_FS_121715.indd

Ohio Individual Income Tax Lump Sum Distribution Instructions 2014 Form LS WKS

PIT_LumpSum_GEN_FS_083112.indd

2012 Form LS WKS

PIT_LumpSum_GEN_FS_083112.indd


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