Maybe the bank which was the custodian of the IRA prepared its 1099-R incorrectly for 2019. It issued an 1099-R to the deceased showing that the entire amount was distributed. However, it was distributed directly to the beneficiary of the IRA, me, who then rolled it over into my own IRA.
As I said I entered the amount where you recommended on Form 1041, Line 8, Other Income, and Line 18, Income distribution deduction. However, TurboTax Business on Schedule K-1 did not enter that amount on Line 5, Other. TurboTax software proportioned that amount between Line 1, Interest; Line 2, Dividends, and Line 5, Other.
Sorry that I misunderstood "Back-up Withholding". The bank withheld 10% for Federal income tax, which I guess is the default when there are no specific instructions. I'll enter the amount withheld on Form 1041, Line 26, Total payments. I'm not worried about having to wait for a refund from IRS, as the lawyer just informed me today that the court date as been postponed again for closing the estate.
Thx for your help so far.
