Filing a final tax return for a deceased relative who passed away before receiving the RMD for that year. What if any entries are required on the deceased's tax return?

[amvivaldi]

The deceased had already started RMDs in prior years. Also, the beneficiaries have elected to make a total withdrawal and will report in their returns.

[dmertz · Accepted solution]

Upon the death of the decedent, responsibility to distributed the decedent's RMD for the year shifted to the the beneficiaries.  On the decedent's tax return, do not include as a required amount any portion that shifted to beneficiaries.

With the entire balance having been distributed to beneficiaries, the year-of-death RMD has been satisfied.  All that matters on the beneficiaries' tax returns is that Form 5329 Part IX is not populated.  That can be done by either indicating that no RMD was required (even though it was),  or by indicating that the required amount was some portion of amount that was actually distributed.  

[ReneV4]

You will not need to report the missed RMD on the deceased relative's final return, since the income was never realized.

Instead, the legal requirement shifts to the beneficiaries. The financial institution will issue Form 1099-Rs to each beneficiary. The beneficiaries will report their respective 1099-Rs on their own personal returns.

[amvivaldi · Accepted solution]

Thank you!  That second paragraph contains what I was looking for.  Ialready understood the transition of burden to beneficiaries.  I was unsure what and how to enter in the decedent's return.

[amvivaldi]

Thank you! That second paragraph contains what I was looking for. Ialready understood the transition of burden to beneficiaries. I was unsure what and how to enter in the decedent's return.

[DianeW777]

TurboTax Online requires an account for each return you need to file. You will set up an account in the name of the deceased relative, just likee you set up your own. Prepare the return for that person. If there does happen to be a refund you will want to include Form 1310. The instructions are provided below.

If required to enter an identification, enter your deceased relative's state ID if you have it, then e-file the return if it goes through. If not, you can always try yours. As a last resort, you can always print and mail the tax return.

• Can I file Form 1310 in TurboTax?

@amvivaldi