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nununene
New Member

If turbotax is treating a one time OPM paycheck reimbursement death benefit as an annuity for me, how do I enter it since I don't own the annuity?

my sister passed away at the end of Sept 2021 and the OPM retrieved the sept check (paid in Oct. 2021) and then reimbursed her estate in sept 2022.  Turbotax will not let me enter it as a one time payment and thinks I own/owned the annuity.  I never owned the annuity.  How can I change the annuity thinking by turbotax?
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1 Reply
DaveF1006
Expert Alumni

If turbotax is treating a one time OPM paycheck reimbursement death benefit as an annuity for me, how do I enter it since I don't own the annuity?

You would need to report this into an estate tax return, form 1041.  This is a separate Turbo Tax product that would need to be purchased to report this type of activity. Once the 1041 is complete, there will be K1's issued to all of the beneficiaries. If you are a beneficiary, the income will be passed on entirely to you.

 

Once you have a K1 in hand, you will report this on your individual 1040 return.  You won't be asked all those annoying annuity questions.

 

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