Amend 2021 returns due to beneficiary forms

[brianN123]

I already filed my taxes for 2021 working on the knowledge that a check I received from a Great Aunt that passed away was from an inherited IRA distribution and filled out a substitute 1099-R since I never received any forms or paperwork.  It still reported the amount feom the check towards my income. The successor trustee for my Great Aunt contacted the lawyer involved and they said I should get a schedule k-1 instead.  Once I receive forms/paperwork from the lawyer/trustee would I amend to delete out the substitute 1099-R and form 4852 and add in the schedule k1 and its information?  Thank you for any response as I want to make sure I am doing things correctly.

[JillS56]

That is correct.   When you receive the Schedule K-1 you will amend and remove the 1099-R and enter the Schedule K-1.

Word of caution, do not amend until you know that the original return filed has been processed by the IRS.   Typically, you would know this when you receive your refund.  If you owed money, you might want to wait about 30 to 45 days and check your transcript at irs.gov/transcript.   You will want to get the Account Transcript and the Return Transcript.   If the return transcript has information from your return, then you know that the return was received.   The Account Transcript will show whether or not the process has been completed.

[brianN123]

Would I need to worry about the transcripts if I am receiving a refund?  Just complete the turboxtax amend process and follow the instructions…. Also I expect the schedule k1 instead of the 1099-r shouldn’t really change my refund considering both consider the amount of the check I received as taxable income, correct?  And thank you!

[KrisD15]

You might want to wait until you get the K-1.

Are you sure you inherited the IRA or was the IRA closed by the estate and you are inheriting the remaining funds? 

[brianN123]

I think the IRA was closed by the estate and we inherited the remaining funds.

[PattiF]

You should wait until you receive the K-1 from the estate to amend your return. There may be a difference in the amount reported on the K-1 and the check that you received. 

K-1s issued by estates are often sent out later than other reporting forms. 

[fanfare]

K-1 is required to be sent by March 15 so you can file on time.

That doesn't mean the responsible party will necessarily meet the deadline.