This is the situation that I asked about yesterday, and was told here that the withheld federal and state taxes cannot be credited towards the beneficiary's taxes; the withholding would have to be refunded to the estate, and then the estate would distribute those amounts to the beneficiary who would pay them with her tax return. I've been trying to find out here whether she needs to include the 1099-R to the estate, but assume there's no need since the K-1 shows the distributed amount. Is this not correct?
