Entering 1099 R for a Trust

[Luppoe]

That is the only info in the program on what to do with a 1099R for a trust return. There is missing information like:

Most people would enter block 1 info in the other income field, but the blog says block 2A goes there.  That difference could be $10K+, big difference in income being reported.  What is correct and how do we know that?  Also, if the income in block 1 or 2a (whatever one is correct) is the only income and it is under $600, do we have to file a return? Do we need to send K1s out?

If there is info in box 4 (tax withheld) where does that go? 

What about info in any of the other boxes?

We pay over $100 for this software and the blog has entries about this for over 4 yrs.  If TurboTax states the software is for Trust Returns it needs to be completely for Trust Returns.

There needs to be an entry form for the 1099R and complete instructions on what to do.

Hoping the person who answers a BLOG question is correct is not the answer and not good customer service.

[Luppoe]

When will TurboTax Business truly be for TRUST returns? For over 4 yrs this blog has been the only place to find out how to enter 1099R info into a TRUST return. We pay over $100 for the software just to be told to get the answer in a BLOG. The software does have a small note about the 1099R to enter the info in other income, but it does not tell where we get that info from. The BLOG says block 2A but most would probably enter the info from block 1 which can be a difference of over $10k in income. The 1099R has 19 different blocks, are any of the other blocks required to be entered, like Federal Income Tax withheld? 

Another question that the program doesn't seem to answer is if Block 2A is correct and the info is under $600 and is the only income for the TRUST, does a return have to be filed?

Please provide complete written instructions on how to enter all info from a 1099R into a TRUST return and any other items we need to know that is not in the software. 

[tagteam]

For a trust, you need to file a 1041 if the trust has any taxable income (or gross income of $600 or more).

See https://www.irs.gov/instructions/i1041#en_US_2021_publink1000285943

[tagteam]

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@Luppoe wrote:

If there is info in box 4 (tax withheld) where does that go? 

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Schedule G (of the 1041), Part II, Line 14.

[tagteam]

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@Luppoe wrote:

We pay over $100 for this software and the blog has entries about this for over 4 yrs. 

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You do understand that having a tax (or legal) professional prepare the 1041 (along with K-1s and associated forms and schedules) would cost $600 at the very least and could easily run $1,500 and even more, do you not?

[tagteam]

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@Luppoe wrote:

Please provide complete written instructions on how to enter all info from a 1099R into a TRUST return and any other items we need to know that is not in the software. 

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I apologize for the serial posting (issue with editing on my end, I think), but you need to be made aware that many of us who answer questions on this board (known as "Champs") are completely unpaid volunteers. 

As a result, making demands that we supply every single bit of information (that you demand) to make your life easier is simply unwarranted and unfair.

[Luppoe]

I paid good money for the program and am looking for the correct information on how to file my deceased mother's trust return.  The program should have that information and we should not have to rely on your help. I understand you are a volunteer and want to thank you for that.  But as someone who paid for the software to complete the tax return, TurboTax should not have us rely on you for assistance.  They need to put all that info into the program.  It takes about a half hour to find these answers when it should be a simple data entry with the program.  By my searches this has been going on for over 4 yrs and they still have not correct it.  Now I have asked these questions in chat and they have provided me with completely wrong answers. So how should I be? 

TurboTax Please add this info into the program. 

[tagteam]

I understand your position.

Where did you get wrong answers? Who gave them to you?

[Luppoe]

When someone is asking how to enter a 1099r, your answer is great except there should be an additional instruction(s) that if the 1099R has tax withheld follow these instructions to enter it. 

 On the 1041 Schedule G, line 14, check the box and enter the tax withheld from the 1099R box 4.  (some users also asked how to get this info to the K1s, I just left as a refund since it was easier for me. Not sure what is best or correct)

If there are any other boxes that might need to be entered they should be included in the instructions or a note that they are not used for the 1041.  Also I saw a note that TurboTax Business doesn't have much if any support for state returns, if you have more info that would be great.

So just adding one simple step and maybe a few notes to instructions found on the BLOG would clear up many questions. 

Also if you try using the help from the program and enter 1099R you get 1040 instructions, would think Intuit would have separate help files, just like an input screen for this info. If you ask for IRS instructions in the application it send you to an Intuit page with links to it but none of them pertain to a TRUST return.

TurboTax Business does not have any audit for this from the IRS 1041 instructions. So the no matter what the total income is it has you file a return: 

Who Must File
Decedent's Estate
The fiduciary (or one of the joint fiduciaries) must file Form 1041 for a domestic estate that has:
1. Gross income for the tax year of
$600 or more

Bottom line is we believe TurboTax should have all this in the Business version so we can get our taxes done in a few minutes instead of requiring a few hours of research. I looked back at the Blog and the oldest request was in 2018. 

[tagteam]

There have been a number of posts, complete with screenshots (such as the one below), but many of them did not transfer over from the old TurboTax board (Blog or whatever you want to call it).

[dmertz]

This instructions for Schedule K-1 (Form 1041) indicate that ordinary tax withholding is not eligible to be passed through on the Schedule K-1.  The instructions indicate that only backup withholding (not ordinary withholding) can be passed through to beneficiaries.  Ordinary excess tax withholding would have to be refunded to the estate for subsequent distribution from the estate to the beneficiaries.

[iOne]

@TiffanyL the point is the product, TT Business is failing in a specific way (regarding the common 1099-R form) and the company (TurboTax) seems not to care, and seems to leave compensating for this failure to meet the needs of users by leaning on the unpaid members of the forum.

It's a profitable business plan, sure.  But customer hostile.

[iOne]

@TiffanyL the point is the product, TT Business is not meeting the needs of users in a specific way (regarding the common 1099-R form) and the company (TurboTax) seems not to care.  Intuit seems to leave compensating for this failure to meet the needs of users by leaning on the unpaid members of the forum.

It's a profitable business plan, sure.  But customer hostile.

[tagteam]

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@iOne wrote:

Intuit seems to leave compensating for this failure to meet the needs of users by leaning on the unpaid members of the forum.

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Intuit is not leaning on us, though. We are all here voluntarily, but the employee experts are compensated.

The program does need improvement (enhancement), as you indicated. However, whether or not anything is actually implemented is left to the developers and has nothing to do with what happens on this board.