Income Averaging

[AZ-Tax]

Upon looking into TTB, the only place I saw 'income averaging" would be for Farmers & Fisherman. I assume that is still current?

[taxdude71]

As far as ever learned

[taxmom34]

it could apply to a lump sum distribution, it used to be 5 or 10 year, now, i think only 5 year is available. but the income averaging of the '80's is gone

[AZ-Tax]

I think it was a Lump Sum but...

upon looking at the 1099-R, the "total distribution" box is NOT checked but it is a IRA code 7. What do you think?

[taxmom34]

it has to be a total distribution . and i'm not sure an IRA would qualify. i think it's pensions or 401K's

[FEDUKE404]

Are you talking about Form 4972?

If so, have not done one of those in many years.

The person must be a very old coot to qualify in the first place....

Ah, the days of Schedule G! I actually wrote a program (in Basic) to do all of the calculations etc.

FE

[taxmom34]

i loved doing the income averaging. when i worked for block i won prizes 3 years in a row in competition in the district for doing the most.
and i did the lump sum averaging 10 years ago on my own return. and i'm not an old coot!!, lol, i am trying to retire though and just do family.

[S T]

Me Too

I loved income averaging, what was it back then Schedule G) and interestingly enough, clients still ask about it.
It was actually a "fun" calculation and to see the end result. Form 4972 was always good too, as you could see the end result ( bt a little more complicated to understand)

Wish they would bring it back - No chance, right?

Sandy

[FEDUKE404]

Dusty memories

i loved doing the income averaging. when i worked for block i won prizes 3 years in a row in competition in the district for doing the most.
and i did the lump sum averaging 10 years ago on my own return. and i'm not an old coot!!, lol, i am trying to retire though and just do family.

Ah yes - the old Block "prizes." I think one year, to spice things up, they went with Form 2210 preparation. Exception 2 was almost always a winner!

Of course, I still remember them giving out award certificates to anyone who wrote $100 worth of "volume" in a single day. There were a few $200 same, and a rare $300 certificate - but that would require a monster of a return that probably took several days to complete - including the check tape.

As for 10-year averaging, I thought you had to be born prior to 1936 to benefit? (I'm not staying awake at night waiting for Form 4972....or even a Sch R.....to show up....). The old brain gets muddled with "the rules" for some of those strange forms - probably a long-term effect of all that inhaled ammonia at Block??

FE