1099-R Form Help?

[michael520]

Hi there,

Long story short, my father passed in 2022, and in 2023, I became trustee of his trust that was set up in 2018, when his mother (my grandmother died). My grandmother had a provision in her trust that if her children passed, that their children would be beneficiaries. To disburse the amount left in my father's trust, I had to become the trustee of his trust. After becoming trustee, I had Edward Jones disburse the remaining about equally between me and my two siblings.

I just received a 1099-R form (for the trust), with the full amount, and thus I would have to pay the whole tax amount. Is it as simple as asking Edward Jones to send corrected 1099-R forms to me and my siblings, reflecting each distribution, so I am not stuck with the entire tax bill?

[michael520]

For clarification! I disbursed the amount of the whole trust into my siblings and I's respective trusts, and was told by Edward Jones that we each would have to pay taxes on those disbursements.

[dmertz]

The Form 1099-R is correct.  The trust (you as trustee of the trust) must file Form 1041 to report the income to the trust.  This filing include a Schedule K-1 for each beneficiary, a copy of which must be provided to the respective beneficiary, passing the beneficiary's share of the income through to the beneficiary for inclusion on the beneficiary's tax return.  The trust will then take a deduction for this Distributable Net Income, eliminating this income from the taxable income of the trust.

The TurboTax product for preparing Form 1041 is TurboTax Business for Windows (not TurboTax Home & Business which is for Form 1040).