Schedule G-1: Tax on Lump-Sum Distributions (2024)
California · FTB · Used for tax years 2024
California Schedule G-1 calculates tax on lump-sum distributions from qualified plans. It includes a 5.5% capital gain election and a 10-year averaging method and attaches to Form 540, Form 540NR, or Form 541.
Who files this form
Schedule G-1 is used only for lump-sum distributions from qualified plans. Complete Part I to check whether you can use it.
You must meet all of these conditions:
- The distribution was the participant’s entire balance from all of an employer’s qualified plans of one kind: pension, profit-sharing, or stock bonus.
- You did not roll over any part of the distribution.
- You have not previously used Schedule G-1 for a distribution received after 1986 for the same plan participant, including yourself.
You must also meet one of these conditions:
- You received the distribution as a beneficiary of a participant born before January 2, 1936.
- You were the participant, were born before January 2, 1936, and participated in the plan for at least five years before the year of distribution.
What you'll need
Have these items available:
- Federal Form 1099-R: Schedule G-1 uses box 2a for the taxable amount, box 3 for capital gain, and box 8 for the current actuarial value of an annuity, if applicable.
- Your California return: Form 540, Form 540NR, or Form 541. Enter your name as shown on that return and your SSN, ITIN, or FEIN.
- Schedule G-1 instructions, if using 10-year averaging: Lines 19 and 25 require the Tax Rate Schedule in the instructions. Those instructions were not included in the supplied text.
How to file
Attach Schedule G-1 to Form 540, Form 540NR, or Form 541.
Enter the tax from line 28 on the applicable return:
- Form 540, line 34.
- Form 540NR, line 41.
- Form 541, line 21b.
If you choose the capital gain election in Part II but do not use Part III, enter the amount from line 7 on the same applicable return line.
Common mistakes
- Using the schedule when Part I says not to. Do not use it if you answer “No” to question 1, “Yes” to question 2, “No” to both questions 3 and 4, or “Yes” to question 5.
- Missing the line 12 shortcut. If line 12 is $70,000 or more, skip lines 13 through 16 and enter the line 12 amount on line 17.
- Exceeding the line 13 limit. Do not enter more than $10,000 on line 13.
- Completing unnecessary annuity calculations. If line 11 is blank, skip lines 21 through 26 and enter the line 20 amount on line 27.
- Overlooking special instructions. The form directs multiple recipients to the instructions.
Questions people ask
What tax calculation choices does Schedule G-1 provide?
Part II is used to choose the 5.5% capital gain election. Part III is used to choose the 10-year averaging method. The form directs you to the instructions for both choices.
What amount goes on line 8?
If you completed Part II, enter federal Form 1099-R, box 2a minus box 3. If you did not complete Part II, enter the amount from box 2a. The form also directs you to the instructions.
Does the form include a death benefit exclusion?
Yes. Line 9 is for a death benefit exclusion for a beneficiary of a plan participant who died before August 21, 1996. The form directs you to the instructions for details.
Where do I find the tax rates for 10-year averaging?
Lines 19 and 25 direct you to the Tax Rate Schedule in the Schedule G-1 instructions. That schedule is not included in the supplied form text.