according to our CPA the 1099R needs to make a Nominee Adjustment. I was able to select that for 1099INT and 1099DIV. I have no selection in TURBOTAX to show this adjustment. How do I get TURBOTAX to reflect this adjustment on a 1099R?
Please read this entire thread
Just a few thoughts ...
> the payer should pay you each separately and send you each your own 1099-R
> if they will not then you can report all the income and let the other person reimburse you the difference their portion costs you in taxes ( if you are giving them the payment then simply reduce the payment you send)
> if you insist on doing a nominee entry then you really need to complete the 1099-R timely ... they were due to the IRS & the person you are sending these forms back in January ... you will pay late fees for filing them late
Did you receive this as, say, the result of an inheritance, and decided to share with others? If so, you are actally making them a gift, which is not taxable to them, nor deductible by you.
Good catch ... my answer assumed an ongoing annual situation not a one time issue.
the amount was from a ira distributed after death to an individual's name & SS, the CPA says to make a Nominee Adjustment as the total amount is going to be reported on the 1041 estate return this year. I can't force USAA to redo their reporting, they released the $ in 2015.
Whose name us the 1099-R in and what is the code in box 7?
An IRA paid after the owners death should be in the name of the beneficiary with a code 4 in box 7. If the beneficiary was the estate and not a person, then the estate would distribute the proceeds according to the will and the estate would pay the tax. If in the name of a person as a beneficiary, then that benificuary is responsible for the tax and it cannot be assigned to someone else. If more than one beneficiary then the IRA custodian would have sent separate 1099-R's to each benificuary with their share.
What the beneficiary does with the money is up to them if they want to split it or not, which would be a non-reportable gift and not go on the tax return.
the 1099R is in the decedent's name but was distributed after death. the 1041 estate return will have beneficiary K-1s
Then the 1099-R gets reported on the estates 1041 tax return and the estate issues the K-1. This requires TurboTax Business to do. Home and Business does not do estate 1041 returns. You might want to get professional help with filing an estate return and the 1041 and K-1 forms.
thank you. I agree and the 1041 is being done by an estate CPA. The problem is that the 1099R is reported for the individual and making a nominee adjustment is the way to show the IRS where the distribution will be taxes. (the CPA gave me the advice.)
Why isn't the CPA also doing the personal return ? They should also do the 1099's for you as well.
But if you insist on doing it yourself then use the instructions in the original answer given.
Following the original answer added income but did not adjust it so it doubled the 1099R amount.
If the 1099-R is in the name of the deceased and not the estate and was paid after death with other than a code 4 in box 7, then if the IRA custodian was notified of the death, the custodian should issue a corrected 1099-R.
I will pursue that and see if this mess will go away. Thanks everyone for your advice. Have a good evening.
If the IRA custodian will not issue a corrected 1099-R showing the name of the beneficiary (estate of deceased) and a code 4 in box 7, then you might want to suggest to the CPA that is doing the 1041 that he file a 4852 (substitute 1099-R form) in place of the 1099-R that was received with the correct name and code and attach an explanation statement that the distribution was after death and the IRA custodian refused to correct the 1099-R. This would all be done on the 1041 estate return and not the personal 1040 return.
And you should also paper file to explain the negative amount on line 21 of the form 1040 ... letting the IRS know where the 1099-R amount will be showing up ... this will match what the CPA is sending ... which is another reason the CPA should really be doing both returns.