Annuity was paid to Estate under Estate's TIN/EIN. Annuity 1099-R (code 4) had Fed tax w/h. Can the Annuity taxable amount be distribute to the Heirs by way of K-1 to each Heir? Am I correct that the Annuity can be distributed to the Heirs and the Estate tax return deducts the distribution, the Executor then will receive the 1099-R Fed w/h by way of Estate Fed income tax refund?
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If the estate is preparing the final 1041 and K1 for the beneficiaries then the taxable amount, taxes withheld, taxes paid can be passed on. The key is final 1041!Originally posted by AZ-Tax View PostTaxes after all are the dues that we pay for the privileges of membership in an organized society. - FDR -
Yes, its a final 1041 Estate tax return
Yes, its a final 1041 Estate tax returnComment
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Why would it need to be a final Form 1041 in order to distribute income reported on a 1099-R to beneficiaries?Originally posted by AZ-Tax View Post"You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe HowardComment
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The 1099-R was issued to the Estate.
The 1099-R was issued to the Estate.Originally posted by Rapid Robert View PostComment
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That's what I meant, I guess I left a comma out. Why can't income, reported to the estate on a 1099-R, be distributed to beneficiaries prior to final year?Originally posted by AZ-Tax View Post"You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe HowardComment
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It can and often is. Since the taxable annuity has to come out first when distributions are made, it is reported on beneficiary's K-1, and is taxable to bene. Estate shows as income on 1041 and shows the federal and/or state income taxes withheld. Refunds, if there are any, come into estate and become part of the estate assets. The only items that can ONLY flow through on the final 1041 are excess administrative expenses and capital losses.Last edited by Burke; 04-06-2016, 07:35 PM.Comment
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