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.
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
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
My (2018, trust) 1099R has some withholding - where do I enter that?
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.
@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-the-trust-beneficiary-using-turbotax-business">https://ttlc.intuit.com/questions/4655512-where-do-you-allocate-backup-witholding-from-a-trust-to-the-trust-beneficiary-using-turbotax-business</a>
@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!
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).
How do I enter 1099-R on 1041 Trust return for Annuity
Is there an update for this dead link that answers the question I need answered?
Is there an update for this dead link that answers the question I need answered?
Thanks for the reply. My question was how to allocate a tax overpayment to the beneficiaries. The 1099-R had Federal and state taxes withheld. All of the income was distributed to the beneficiaries. I think I just found how to allocate the withheld taxes to the beneficiaries, in Forms mode on the Tax Payments Worksheet, Part II Other Tax Payments, line 1c: amount to allocate to the beneficiaries. But I don't think the Step-by-Step mode asked this question.
I believe you are correct, this would be Schedule G, Part II, line 14. But that causes the withholding to be allocated to the Trust. As soon as I use the worksheet to allocate the withholding to the beneficiaries, then this line 14 becomes zero, and the beneficiaries' K-1s are updated. This is what I want.
This solves the problem. Stupid of TurboTax not to include 1099-R form availability. Perhaps the IRS should kick them in the butt!
SSA-1099 is not included either. Pretty lame as I had to buy the "Business" version of turbo tax to file for an estate and only now does it's shortcomings become visible. My Home and Business version has this capability and should include the 1041 form. Just please make one or the other work properly because they don't!
Yes, you would go to other income or Loss section in your Trust account and enter the taxable portions of your 1099R. For the 1099R, you will enter "1099-R Box 2a" as the description and taxable.amount.
As far as the 1099 SSA, this is reported on the individual tax return unless it is issued in the name of the trust.
I have read thru the issues/responses with 1099-R data entries for annuity payments to an Estate account, however my issue is that I have several 1099-Rs with data in Boxes 1, 2a, 4, 5 , 7 (4,D), 12, 13 and 14.
Where do I even start?
Did a quick comparison between TT Deluxe and TT Bus using the "Box 2a" workaround, the AGI were almost identical, off by a few $100s. 1099 boxes then are mostly informational: box 5 (explains delta between box 1 and box 2a), box 7 (??) and boxes 12 and 14 (States), But this raises some different questions with issues I am having with TT Business sans 1099 support:
1) how is box 4 Fed tax withheld (Sched G) derived since not entered anywhere?
2) IF you purchase TT Bus for States, will all data be ported (AGI, etc.) or is another workaround required?
3) same as #1 above, will States also derive the Fed tax withheld (1099-R box 7)?
Unrelated but important, how would enter "Deductions: General and Admin Expenses" in this case from a Liquidating Trust?