Mom died in prior year

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  • Scrivner
    Junior Member
    • Mar 2014
    • 2

    #1

    Mom died in prior year

    Client's Mom died in 2012, it was a "small" estate and everything passed to only child (my client). Attorney closed probate estate (for prime residence) before year end. In 2013 a final pension payment was made to estate and cashed by child. Of course now a 1099R for 2013 was issued. How does it get reported? Set up a 1041 for the estate? Just have the child report it on their 1040 with some note attached? Issue the child a nominee 1099R so that there's documentation? Oh yes, there's withholding, too. Thanks in advance.
  • Koss
    Senior Member
    • Jul 2005
    • 2256

    #2
    Form 1041

    If the 1099-R identifies the estate as the payee, with the EIN of the estate, then I would file a 1041 tp report the pension distribution.

    What is the distribution code? 4?

    The taxable portion of the distribution should pass through the estate to the beneficiary on Schedule K-1, so the estate will not have any taxable income.

    Hopefully the withholding can pass through, also, but I don't remember how that works.

    BMK
    Burton M. Koss
    koss@usakoss.net

    ____________________________________
    The map is not the territory...
    and the instruction book is not the process.

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    • Burke
      Senior Member
      • Jan 2008
      • 7068

      #3
      Originally posted by Scrivner
      Oh yes, there's withholding, too. Thanks in advance.
      And therein lies the problem. Whose SSN is on the 1099R? If its the estate, then file a 1041 to get it. If its the deceased, you need a corrected 1099R from the issuer.

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