Where do I enter my 1099-R on my 1041 estate trust return?

[nguyen_john]

I am filing an irrevocable trust for my deceased mother using 1041.  She has an annuity earning some income last year so she received a 1099r.  I would like to know how to enter the 1099r information on the 1041 form because I don't know where on the estate turbo tax software. Please help.

[tagteam · Accepted solution]

Where do I enter my 1099-R on my 1041 estate trust return?

This is sort of done peicemeal, because TurboTax Business does not contain a screen dedicated to the entry of information from a 1099-R. In most instances, following the procedures outlined below will give you the correct result.

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Follow the steps below to enter the amount on Form 1099-R (Box 2a) that is treated as ordinary income:

1) Click the Federal Taxes tab and then click "Income".

2) Click the Start (or Update) button to the right of "Other income or loss".

3) On the Other Income page, enter "Ordinary income from 1099-R Box 2a" as the description.

4) Enter the amount treated as ordinary income in Box 2a under "Amount" and click the Continue button.

5) Go into Forms mode (upper right side of screen). 

6) Under "Forms in My Return" (upper left side of screen), look for "Form 1041" and click that form.

7) On Form 1041, ensure that the Box 2a amount you entered previously appears on Line 8, Other income.

[Edited 8/16/2018]

[wbn]

This method doesn't update line 3 (annuities) on form 8960 for tax calculations purposes .. we need a proper 1099 R entry routine  for turbotax estate/trust 1041

[tagteam]

I concur with your last statement. However, the 8960 issue affects annuity payments from nonqualified annuities and distributions from some life insurance contracts **and only** when such payments are not being distributed to the beneficiary(ies), which I would imagine is a rather small number of 1041 returns.

[wbn]

So happens, my situation is a nonqualified annuity payment made to the trust. Pretty straight forward programming change, enough of the work arounds .. make the change Turbo Tax

[charlesclloyd]

My (2018, trust) 1099R has some withholding - where do I enter that?

[despanel]

My 1099R also has witholding.  I want to allocate this to the beneficiary along with the tax liability for the income they received.  However, Turbo Tax doesn't seem to be able to do that.  I've entered the income in "other income" as described above.  I've also entered the tax witholding and under the Turbo Tax forms, checked that this witholding is from a 1099 form.  Per IRS, I should be able to issue a credit to the beneficiary in Box 13 of the K-1 for this "Backup Witholding" amount, but TurboTax doesn't include anywhere that I can specify this, so K-1 is not being filled out correctly and the backup witholding is being shown as a trust taxes paid amount.

[ScruffyCurmudgeon]

@despanel  Please see the answer to this very similar question on how to allocated a tax overpayment to the beneficiaries.
<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/4655512-where-do-you-allocate-backup-witholding-from-a-trust-to-th...>

[tagteam]

" My (2018, trust) 1099R has some withholding - where do I enter that?"

You can enter the withholding as if you had also received a 1099-INT (see screenshot).

[charlesclloyd]

@SuperUser - That didn't work for me per your screenshot;  I had to enter $1 for Box 1, then I could see an amount in Form 1041 line 25e.  Note:  I created a new, empty 1099INT for this purpose, which is what I assumed you intended.

Or... I could piggyback my withholding onto an existing 1099INT (which is real) and specify a withholding amount where its currently $0.  Is this what you intended?  This seems dodgy, at best (is that even legal?).

I also have a real 1099DIV I could piggyback the withholding onto, again seems dodgy.

Many thanks for your help!

[tagteam]

You are essentially correct. I have edited my answer to include a screenshot and also posted a separate answer with the same screenshot.

In sum, open the Interest and Dividend Income Worksheet in Forms Mode and enter the withholding directly on that form (the payer's name can be whatever you want as the IRS will not receive a copy of the worksheet).

[tagteam]

Use Forms Mode to enter withholding on the Interest and Dividend Income Worksheet  (see screenshot below).

[charlesclloyd]

Much better!  I was able to see my entry on line 25e/1041 without adding a dummy 1099INT nor modifying any of the fields of my actual 1099's.

Note for other readers: you may have actual 1099DIV or 1099INT which shows up under the "Int-Div Wks" label.  Ignore those for this tip and just use Part 1 of the "Interest and Dividend Income Worksheet"

BTW, the screenshots are worth > 1000 words!  I tried to attach one myself, but I guess regular users aren't permitted to attach things.  Too bad you cannot see the attachments on an iPhone nor iPad.  Works great on Safari (but you must be signed-in to this site in order to see the screen shots, which can be very confusing if you're just lurking).

[williamgoodbody]

How do I enter 1099-R on 1041 Trust return for Annuity

[tagteam]

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@williamgoodbody wrote:

How do I enter 1099-R on 1041 Trust return for Annuity

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Refer to the first post in this thread.