1099-R issued under deceased taxpayer

[peggysioux]

Husband passed away at the very end of 2013 so January's monthly pension distribution was still in husband's name. The pension was changed over to wife in February. 1099-R was issued in husband's name for the January distribution. Should wife ask for a corrected 1099-R?

[Roland Slugg]

That shouldn't be necessary. If the widow received the January 2014 pension benefit, just report it on her tax return along with the rest of the 2014 benefits.

[JudyL]

Husband passed away at the very end of 2013 so January's monthly pension distribution was still in husband's name. The pension was changed over to wife in February. 1099-R was issued in husband's name for the January distribution. Should wife ask for a corrected 1099-R?

Reporting it on her return won't be a problem unless there were taxes withheld under the deceased husband's social security number that she tries to claim on her return. If not, I'd just report it on her return with the rest of the year's pension income.

[peggysioux]

Reporting it on her return won't be a problem unless there were taxes withheld under the deceased husband's social security number that she tries to claim on her return. If not, I'd just report it on her return with the rest of the year's pension income.

There were taxes withheld (not alot - a couple of hundred dollars) so the choices are to include as income but not include the taxes withheld (if taxpayer does not want to request a corrected 1099) or have taxpayer request a corrected 1099-R -- am I correct with the choices?

[Burke]

That's about the size of it. The custodian should issue a corrected 1099-R. The problem exists in all likelihood because they issued the check to the husband; instead of sending it back to be re-issued, the wife deposited it into their joint account (or it might have been EFT'd by the custodian.) But she cannot get credit for the FWT or SWT in his name.

[peggysioux]

1099-R issued under deceased taxpayers SS #

That's about the size of it. The custodian should issue a corrected 1099-R. The problem exists in all likelihood because they issued the check to the husband; instead of sending it back to be re-issued, the wife deposited it into their joint account (or it might have been EFT'd by the custodian.) But she cannot get credit for the FWT or SWT in his name.

Taxpayer contacted custodian of pension and she was advised that they are unable to issue a corrected 1099-R. They told her they deal with this issue all the time and don't issue a corrected 1099-R. Any other options other than not including the withheld taxes?

Peggy Sioux

[TAX4US]

Ok to report the income but the one I have has a rather large FWH on it. Issuer refuses to correct. Can we use Substitute 1099r to correct or move the wh to proper person?

[taxmom34]

are you doing the 2014 return or 2015? couldn't your client file MFJ is spouse died end of 2013?

[TAX4US]

Spouse died 2014. Payment and 1099r both issued to husband in 2015 with spouse ss# on it. State will not correct to show Husbands SS# on it.

[Burke]

It can be done but you have to get to the right person. I suppose she got the check and deposited into a joint checking account instead of returning it for re-issue? Had she done so, they would have corrected their records and reissued the check to her with her SSN. They can send a corrected 1099-R showing the right name and SSN on it so that she can get the withholding credit. I've done it. It was an insurance company and not a government agency.
The IRS told me they had two choices: issue a corrected 1099-R, or refund the withheld taxes to the payee and adjust their next remittance report. (Sort of like an amended 941). They chose Option 1 and we got the credit when the return was filed.