It depends. One of the most intriguing things about trust account is that they do not have a separate category to report 1099-R. As a result, this is how you report.
- Click the Federal Taxes tab and then click "Income".
- Click the Start (or Update) button to the right of "Other income or loss".
- On the Other Income page, enter "Ordinary income from 1099-R Box 2a" as the description.
- Enter the amount treated as ordinary income in Box 2a under "Amount" and click the Continue button.
- To claim a deduction against the overages and other deductions, go to the deductions tab
- Go to expenses, taxes, and fees
- Select other deductions
- Here is where you list these deductions. Here you enter an explanation stating these deductions that were taken form the distribution from the 1099-R. Enter as 1099-R deductions and overages and then the amount of the deduction.
- Now you can verify this by going to your forms and verifying on your 1041 the following:
- Your 1099-R for the full amount will be on line 8 of the form
- Your deductions will appear on Line 15A
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