PIT-STC: Special Tax Computation for Qualified Retirement Plan Distribution (Revision)
Delaware · Delaware Division of Revenue · Used for tax years 2025
Delaware Form PIT-STC computes the special tax on a lump sum distribution from a qualified retirement plan. It uses the distribution’s capital gain and ordinary income portions, any allowed death benefit exclusion, and any applicable annuity value to calculate tax reported on For
Who files this form
For tax year 2025, Form PIT-STC provides a special tax computation for 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; or
- 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, if applicable, for the allowed death benefit exclusion.
- Current actuarial value of an annuity, if applicable. PIT-STC refers you to the federal instructions for this item.
- The Income Tax Table for Form PIT-RES, used to calculate tax on PIT-STC lines 8 and 11.
- Form PIT-RES or Form FID-TAX, to report the calculated tax and attach PIT-STC.
The form also asks for your name and taxpayer ID, along with spouse information where applicable.
How to file
- Enter your identifying information and the distribution amounts requested on the form.
- Follow the calculations on lines 1 through 16. Use the Income Tax Table for Form PIT-RES where directed.
- Enter the tax calculated on 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 Form PIT-STC to Form PIT-RES or Form FID-TAX.
The form lists online filing at https://tax.delaware.gov. It does not provide a mailing address.
Common mistakes
- Using PIT-STC for an excluded distribution. The form warns that it 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.
- Leaving PIT-STC unattached. The form directs you to attach it to Form PIT-RES or Form FID-TAX.
Questions people ask
Can I use PIT-STC for a distribution that was rolled over?
No. The form specifically excludes rolled-over distributions.
Which Form 1099R boxes does PIT-STC use?
It asks for the capital gain portion from Box 3 and the ordinary income portion from Box 2A.
Which tax table should I use?
Use the Income Tax Table for Form PIT-RES to compute the tax on the amounts on PIT-STC lines 8 and 11.
Where do I report the final tax amount?
Enter the amount from PIT-STC line 16 on Form PIT-RES, line 25, or Form FID-TAX, line 9. Attach PIT-STC to that return.