I distributed an inherited annuity that was cashed out. Line 1 gross dist is $100,000. Line 2b Taxable amount is $20,000.
I have entered the line 2b amount as other income and it is on 1041 line 8.
What should be entered for 1041 schedule B line 9 and 10?
Did you actually distribute any amounts from the estate?
The typical estate distributes all income currently so Line 9 should be populated. Otherwise, if the distribution is discretionary, Line 10 should be populated. If there were no distributions, then neither line will be populated and the estate will be responsible for paying any income tax due.