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Mom died in prior year

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    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.

    #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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      #3
      Originally posted by Scrivner View Post
      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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