PIT-STC: Special Tax Computation for Qualified Retirement Plan Distribution (Revision)
Delaware · Delaware Division of Revenue · Used for tax years 2024
Delaware Form PIT-STC calculates the special tax on a lump-sum distribution from a qualified retirement plan. It uses the distribution’s capital gain and ordinary income amounts and is attached to Form PIT-RES or Form FID-TAX.
Who files this form
For tax year 2024, Form PIT-STC is used for special tax computation on a lump-sum distribution from a qualified retirement plan.
If the participant was not self-employed, the form applies only when the distribution was made:
- Due to the participant’s death.
- Due to the participant’s separation from employment.
- After the participant reached age 59½.
For a self-employed participant, the form applies only when the distribution was made due to the participant’s death, after the participant reached age 59½, or when the participant was previously disabled.
The form does not apply to rolled-over distributions, early distributions including those received for medical, education or housing exclusions, or distributions subject to the early withdrawal penalty on Federal Form 1040, Schedule 2, line 6.
What you'll need
Have these forms and details available:
- Form 1099R: Box 3 for the capital gain portion and Box 2A for the ordinary income portion of the distribution.
- Federal Form 4972: For any allowed death benefit exclusion.
- Current actuarial value of an annuity, if applicable. The form refers you to the federal instructions for this value.
- Income Tax Table for Form PIT-RES: To compute the tax amounts requested on PIT-STC.
- Form PIT-RES or Form FID-TAX: PIT-STC must be attached to one of these forms.
PIT-STC also asks for your name and taxpayer ID, and your spouse’s information in the spouse fields.
How to file
- Complete the distribution and tax calculations on PIT-STC, using the Income Tax Table for Form PIT-RES where directed.
- Enter the tax from PIT-STC line 16 on Form PIT-RES, line 25, or Form FID-TAX, line 9.
- Complete the signature and date fields. The form includes taxpayer and spouse signature fields.
- Attach PIT-STC to Form PIT-RES or Form FID-TAX.
The form lists online filing at https://tax.delaware.gov. No mailing address is printed in the supplied text.
Common mistakes
- Using PIT-STC for an excluded distribution. The form warns that it does not apply to rollovers, early distributions including those for medical, education or housing exclusions, or distributions subject to the early withdrawal penalty on Federal Form 1040, Schedule 2, line 6.
- Forgetting the attachment. The form directs you to attach PIT-STC to Form PIT-RES or Form FID-TAX.
Questions people ask
Can I use PIT-STC for a distribution I rolled over?
No. The form specifically excludes rolled-over distributions.
Where do I find the distribution amounts?
Use Box 3 of Form 1099R for the capital gain portion and Box 2A for the ordinary income portion.
Which tax table do I use?
Use the Income Tax Table for Form PIT-RES to compute the taxes on the amounts on PIT-STC lines 8 and 11.
Where does the final tax amount go?
Enter PIT-STC line 16 on Form PIT-RES, line 25, or Form FID-TAX, line 9. Attach PIT-STC to that return.