*231801*
2023 Schedule M1LS, Tax on Lump-Sum Distribution

 Your First Name and Initial                           Last Name                                            Social Security Number

                                                                                                                                                                                                            Round amounts to the 
You must complete federal Form 4972 before you can complete this schedule.                                                                                                                                  nearest whole dollar.

 1  Portion of your lump-sum distribution that is eligible for averaging (from line 19 of federal Form 4972)  . . .  . . . . . .  . .                                                                        1 

 2  If you completed Schedule M1R, see instructions. If you did not complete Schedule M1R, enter 0   . . . . . .  . . . . . .  . . .                                                                          2 

 3  Subtract line 2 from line 1  . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . . .  . . . .     3

 4  Multiply line 3 by 20% (.20)  . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . . .  . . .           4 
 5  From the tax table in the Form M1 instructions, find the tax for the amount 
   on line 4 above using the column in the table for single persons   . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . .  .                                           5 

 6  Multiply line 5 by 5    . . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . .     6
   If you did not complete lines 20 through 22 of federal Form 4972, skip lines 7 through 10 below, 
   and enter the amount from line 6 on line 11 of this schedule. 

 7  Amount from line 22 of federal Form 4972  . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . . .  .                           7 

 8  Multiply line 7 by 20% (.20)  . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . . .  . . .     8
 9  From the tax table in the Form M1 instructions, find the tax for the amount 
   on line 8 above using the column for single persons   . . .  . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . . .  . . . . .                                  9 

 10  Multiply line 9 by 5    . . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . .  .    10 
 11  Tax on the ordinary income portion of your lump-sum distribution (subtract line 10 from line 6). 
   If you shared the lump-sum distribution with other recipients, see instructions.  
   Enter the result here and on line 14 of Form M1. Check the box for Schedule M1LS on line 14 of Form M1. 
   Estates and trusts: Include this amount on line 12 of Form M2 and check the box for Schedule M1LS  . . .  . . . . . .  . .  .    11 

You must include this schedule and a copy of your federal Form 4972 when you file Form M1.

                                                                    9995

2023 Schedule M1LS Instructions

Should I file Schedule M1LS?
You must file Schedule M1LS if all of these apply:
•  You received a lump-sum distribution from a pension, profit-sharing, or stock bonus plan in 2023.
•  You filed federal Form 4972, Tax on Lump-Sum Distributions.
•  You were a Minnesota resident when you received any portion of the lump-sum distribution.
You must include Schedule M1LS and a copy of Form 4972 when you file Form M1.

What if I moved into or out of Minnesota in 2023?
Complete this schedule if you were a Minnesota resident when you received any portion of the distribution. 
If you received a portion while you were a nonresident and a portion while you were a resident, you must complete Schedule M1LS and 
include the full amount from federal Form 4972 on this schedule.

Five-Year Averaging Method
Although federal Form 4972 allows you to use only the ten-year averaging method, you must use the five-year averaging method for  
Minnesota.

Capital Gain Election
Minnesota does not allow a capital gain election for lump-sum distributions. You must report any capital gain election on Form 4972, line 6, 
as an addition to federal taxable income on line 4 of Schedule M1M, Income Additions and Subtractions.

Line Instructions
Round amounts to the nearest whole dollar.

Line 2 — Subtraction for Age 65 or Older or Disabled
If you completed Schedule M1R, Age 65 or Older/Disabled Subtraction, and line 3 of Form M1 is:
• Zero or less, enter the amount from line 13 of Schedule M1R on line 2 of Schedule M1LS. 
• More than zero, subtract line 8 from line 3 of Form M1, Individual Income Tax. If the result is:
  • Zero or less, assume the result is positive rather than negative. Then, compare it (as a positive number) to the amount on line 13 of 
    Schedule M1R and enter whichever amount is less on line 2 of Schedule M1LS.
  • More than zero, enter zero on line 2 of Schedule M1LS. 

Line 11 — Tax on Ordinary Income Portion of Lump-Sum Distribution
Subtract line 10 from line 6 and enter the result on line 11. 
Multiple recipients: If you shared a lump-sum distribution from a qualified retirement plan, follow these steps to determine line 11:
1  From the front of this schedule, subtract line 10 from line 6  ..........................................
2  Enter the percentage from box 9a of federal Form 1099-R   ...........................................    %
3  Multiply step 1 by the percentage in step 2 ........................................................
Enter the result from step 3 on line 11 of Schedule M1LS. In the space to the left of line 11, print “MRD.”