How to generate Form 4970 in Lacerte

This article will assist you with generating Form 4970, Tax on Accumulation Distribution of Trusts, in the Individual module of ​Lacerte​.

To generate Form 4970 in the program:

1. Go to Screen 45.2, Tax on Accum. Dist. of Trusts (4970).
2. Scroll down to the Average Income and Determination of Computation Years (Part I) section.
3. Enter the Current distribution considered distributed in earlier tax years (Sch. J (1041), line 37, column (a)) (MANDATORY).
4. Enter the Number of trust's earlier tax years which amounts are considered distributed (MANDATORY).
5. Enter any applicable fields in the Taxable Income Before Distribution (MANDATORY) subsection.
6. Scroll down to the Tax Attributable to the Accumulation Distribution (Part II)  section.
7. Enter the Tax year (e.g. 2020) (MANDATORY).
8. Enter the Income tax (before distribution) (MANDATORY).
9. Enter the Income tax (after distribution) (MANDATORY).
10. Enter any other applicable fields on this screen.