@Anonymous wrote:
Just would like to confirm the handling of a 1099-R that I received for my mother-in-laws trust. The 1099-R was issued from her State Teachers Retirement Fund. Box 1 and 5 show a gross distribution amount with the distribution code 4. There is nothing in box 2a. Therefore, I do not need to include any information on the 1041 for this distribution. Is that correct? I originally included it under other income until I realized that it was not taxable, but would like to confirm.
Thanks.
*You* received it in your name, or the trust received it in the trusts name? Either way it is taxable income, either to you on your tax return or the trust which the trust would then pass the income and tax to the beneficiaries of the trust on a K-1 form that goes on the beneficiaries tax return.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
