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

[tagteam]

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@ScruffyCurmudgeon wrote:
Yes - that is taken from the PDF I posted on 3/17/2021

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Yes, so what is your point? The PDF you posted on 3/17/2021 contains nothing but screenshots you "borrowed" from me. 

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@ScruffyCurmudgeon wrote:
Seems noone bothers to scroll down to answers already posted.

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Seems no one bothers with attribution either.

[tlptmp2020]

I am also looking for this information.  I found where to enter it in the K-1 under the forms tab manually.  But how do I deal with the large refund that is still on the 1041 form when I am allocating the withholding to the beneficiaries?  Also, how do I handle the state withholding as well?

[tagteam]

You have to file Form 1041-T to allocate estimated tax payments to beneficiaries.

Note that you cannot allocate tax withheld from income to beneficiaries (except for backup withholding).

See https://www.irs.gov/instructions/i1041#en_US_2021_publink100052906

Regarding state withholding, you have to address that on the state's income tax return.

[s115]

Joining this conversation to note that the workaround of adding 1099-R income through Other Income seems to cause a problem with K-1s. As I understand it, income from nonqualified annuities is subject to the Net Investment Income Tax. So that income should show up in Box 14, Code E on beneficiaries' K-1s. But it does not because Other Income items are not included in Net Investment Income. 

Is there a workaround to get this nonqualified annuity income into Net Investment Income on K-1s? It seems the only way to get the annuity income into the Net Investment Income category would be to include it as an item of Interest or Dividend income but describe it in a way to make it clear it is income from a 1099-R. But that is very clunky.

Thanks.

[tagteam]

Enter Forms Mode, open your Form 8960, and add the relevant amount on Line 3 (Annuities).

@s115 

[Anonymous]

Scanned through previous responses and I haven't seen this one yet.  I have a 1099-R for my mother-in-law's trust with an amount in box 1 for a gross distribution from her pension.  Box 2a is 0, box 5 has the distribution amount and the distribution code is 4.  Do I just ignore this?  I know it shouldn't be reported under other income, but want to make sure I don't need to include it somewhere else. 

Also very frustrated that the Business product is so incomplete for Trusts.  I had to fiddle around with a 1099-OID since that is also not available.  Thanks in advance.

[ScruffyCurmudgeon]

Please see the dates for creation for the various jpgs that you claim were not mine.  Somehow they seem to antedate what you claim was copied.

History of my walk-through diagrams for Form 1099-R

[iOne]

So is there any possible way to communicate to Intuit how bat **bleep**e crazy this workaround is?

[ScruffyCurmudgeon]

To the best of my memory, the only enhancement that has been made to the 1041 processing component of the Business product was the support for fully entering a Publicly-Traded Partnership (PTP) Schedule K-1, and that was at least 4 or 5 years ago.  The primary complaint ever since any of the Business components (1120, 1065, and 1041) were offered is the absolutely unfortunate inability to import online Forms 1099 and the like from financial institutions.  My understanding is that Intuit does not derive a large amount of revenue from the product, most likely purchasers instead use professional providers, and so the result is very little enhancement.
Given that the 1041 product is only available in Desktop mode, and since the entry needed for 1099-R, or similar, is actually only a single entry into the "Other Income" on line 8 of Form 1041.

@ErickaW   - Every Year the inability to import is the single largest complaint.

[iOne]

Let's also point out that the "business" product is just a feature reduced cut down version of the regular desktop product.  The don't need to put much work into it: just stop hobbling and removing features.

[ScruffyCurmudgeon]

@iOne 
Your comments/complaints will do no good here as this is a board serviced primarily by volunteers (who I might add you do not even choose to acknowledge)  - Complaints should do to an Intuit address.
BTW, you are actually wrong about the internal software coding as much of it is not copied from the personal product (but then look at Lacerte or Pro-Series!)

[VolvoGirl]

@iOne  What are you talking about?  Turbo Tax Business is a completely separate different program than the other personal versions including Home & Business.  It  has nothing in common as them and is not a stripped down version of any of them. 

The Business program (which is only available for Windows, not Mac or Online) is only for a 1065 Partnership or LLC or a 1120 including a Single Member LLC - S corp or a 1041 Estate/Trust return.  It is not the same or has any part of the Home & Business personal program.   And if you are talking about the Home&Business program it does have all the features of the other desktop programs and the most help.  

All the personal versions can only prepare a Schedule C for self employment income.  And by the way All the Desktop programs (Basic, Deluxe, Premier, H&B) have all the same forms so you can buy a lower version.  You just get more help in the higher versions.  

[iOne]

To the volunteers on this board : yes I know you're volunteers, and I appreciate that you donate time.

In all the years of using TurboTax nobody from Intuit has ever responded to a bug report or issue I've encountered.  It's literally like talking to a wall, here, via the comment form in the software, via direct email.  Simple simple fixes -- never get fixed.  Import -- never added.

TT Business/1041 shares a number of precise quirks and bugs with TT Deluxe/1040.  I'm pretty sure that it's either common software code with conditionals, or was "forked" from the same software base.  Either way it's creaky and I use it reluctantly and mostly from inertia.  It's clear that Intuit is just milking the product, not trying to keep or make it competitive.  That's their choice of course.  I run the most basic 1041 trust imaginable, and Business is barely up to the task.

[rpietrycha]

I have a 1099R for a distribution for a trust to a beneficiary.  I follow the previous instructions where I can enter the amount of the distribution, but where do I enter the federal and state taxes that were withheld from the distribution

[tagteam]

@rpietrycha See my previous post (above). 

You can enter federal tax in Forms Mode.