This is why I question Box 4 - Federal Income Tax Withheld (instructions Form 1041 exception):
Backup withholding. If the estate or trust received a 2021 Form 1099 showing federal income tax withheld
(that is, backup withholding) on interest income, dividends, or other income, check the box and include the amount withheld on income retained by the estate or trust in the total for line 14.
Report on Schedule K-1 (Form 1041), box 13, code B, any credit for backup withholding on income
distributed to the beneficiary.
The Form 1099-R that was received shows amounts in Box 4 for Withholding, which the instructions state are Backup Withholding. That is why I am confused about what to do with the amounts and the correct way.
Thanks for your help!
