AR1000TD: Lump Sum Distribution Averaging (2024)
Arkansas · Arkansas DFA · Used for tax years 2024
Form AR1000TD calculates Arkansas individual income tax on a qualifying lump-sum distribution using 10-year averaging. It uses amounts from Form 1099-R and is attached to Form AR1000F or AR1000NR.
Who files this form
For tax year 2024, AR1000TD is used to calculate tax using 10-year averaging on a qualifying lump-sum distribution. Complete Part I to check whether you qualify before completing Part II.
The form’s eligibility checks require:
- A distribution of the participant’s entire balance from all of an employer’s qualified plans of one kind: pension, profit-sharing, or stock bonus.
- No rollover of any part of the distribution.
- Either you received the distribution as a beneficiary of a participant born before January 2, 1936, or you are the participant, were born before January 2, 1936, and participated in the plan for at least five years before the distribution year.
Do not use this form if you previously used AR1000TD for a distribution from your own plan. If you are receiving the distribution as a beneficiary of a deceased participant, do not use it if AR1000TD was used for a previous distribution received for that participant.
What you'll need
Have these items ready:
- Form 1099-R: Part II uses the income in box 2a and the current actuarial value of an annuity in box 8.
- Form AR1000F or AR1000NR: Attach AR1000TD to this return and enter the result on its line 31.
- The tax rate schedule on the reverse side of AR1000TD: The form directs you to use it for Part II, lines 10 and 16.
- Your taxpayer name and Social Security number: Enter these on AR1000TD.
How to file
Complete Part I first to check your eligibility for 10-year averaging. If you qualify, complete Part II.
Enter the income from Form 1099-R, box 2a, on Part II, line 1, instead of on AR1000F or AR1000NR. Enter the final amount from Part II, line 18, on line 31 of AR1000F or AR1000NR.
Attach AR1000TD to AR1000F or AR1000NR. The supplied text does not provide a mailing address or e-filing directions.
Common mistakes
- Skipping the eligibility check: Complete Part I before Part II. Follow each “do not use this form” warning.
- Putting the box 2a income on the wrong form: Enter it on AR1000TD, Part II, line 1, instead of on AR1000F or AR1000NR.
- Missing the $70,000 shortcut: If Part II, line 3, is $70,000 or more, skip lines 4 through 7 and enter the line 3 amount on line 8.
- Missing the no-annuity shortcut: Enter zero on line 2 if there is no annuity value. If line 2 is zero, skip lines 12 through 17 and enter the line 11 amount on line 18.
- Using the wrong precision on line 12: Carry the result to four places to the right of the decimal.
Questions people ask
Can I use AR1000TD if I rolled over part of the distribution?
No. Part I says not to use this form if you rolled over any part of the distribution.
Can a beneficiary qualify?
Yes. Part I includes distributions paid to a beneficiary of a participant born before January 2, 1936. The other eligibility checks also apply.
Where do I find the tax rates for the calculation?
Part II directs you to the tax rate schedule on the reverse side for lines 10 and 16. That schedule is not included in the supplied text.
Where does the final tax amount go?
Enter the amount from AR1000TD, Part II, line 18, on line 31 of AR1000F or AR1000NR. Attach AR1000TD to that return.