Dependent received over $6,000 in death benefits from his deceased mother's California state retirement account. Child is now the dependent of his father and 1099-R has both the child and the father's name on it. There is no entry in the "Taxable amount" box and the "Taxable amount not determined" box is checked. Child also had a part time job and made just under $5,000. Not sure how to do determined how much of the 1099-R is taxable, if any.
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Need to find out if deceased made contributions to this plan, or had any basis in it. Then you can use the Simplified Method to calculate taxable amount. Does 1099R have a figure in Box 5? Most software has a worksheet to calculate this. -
No amount in Box 5. I may need to contact the deceased's spouse to find out about basis, but I kind of doubt he would know. Father of the child doesn't know. One or the other of them may need to call to find out.Last edited by manyhappyreturns; 02-07-2017, 10:58 PM.Comment
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Dad probably got documents from mom's employer at her death and will answer most of your questions. You may need to call her employer or have Dad call them. Both names show on the 1099R because son is a minor. Which SSN is on the 1099R?Believe nothing you have not personally researched and verified.Comment
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Minor child was receiving disability retirement income from this account while mother was still alive but unable to work. She was told that was not taxable to him although at that time he has no other income and the annual amount was $4,600. Child's SSN is on 1099-R.Comment
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Issue solved
Thank you everybody for your input. All questions answered and returns filed for dad and son.Comment
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Just out of curiosity, what was the answer?Comment
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