How to generate Form 4970 in ProConnect Tax

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

To generate Form 4970 in the program:

1. From the Input Return tab, go to Taxes ⮕ Other Taxes ⮕ Tax on Acc 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.