@AmyC, @ThomasM125, @DianeW777 (thank you for reading + responding!)
Want to check my understanding here - stepping back a bit
My mom passed in 2020, I filed her taxes as a normal 1040, I noted she was deceased, etc. Should I have filed a 1041 instead at that point, would that have effected taxes owed?
---changing topics back to the original thread---
After filling out the 1041, it looks like I'm getting the 233.10 withholding back form the 1099-R
There's a question about did the estate make any distributions to its beneficiaries in 2021?
Distribution to Beneficiaries
Distributions to beneficiaries is the dispersal of income earned during the year from investments or other sources. Distributions can also be made from the original assets or principal left by the decedent or maker of the trust.
In all cases, distributions are made according to the instructions specified in the trust agreement or decedent's will.
The money from the 1099-R was deposited into a checking account that both I, my brother and my mom were on. Is this considered a distribution to beneficiaries? If it is, my brother and I get a K-1 and it's income regardless. Wouldn't we be better off just claiming it as misc income and give a description of IRD, seems pointless to create the estate?
Say there was $50,000 in her checking account at the time of death in December of 2020, the day my mom passed, would that have been considered a distribution to the beneficiaries? Or no, because were already joint holders in the account and just inherited it?
Turbo tax also asks for distributions in 2021, of which only we only received the 2767.70 from the 1099-R in 2021.
