Lost uncashed check of RMD as a beneficiary of an inherited IRA.

[Jordan40]

My wife has an RMD as a beneficiary of an inherited IRA. We never cashed the check for 2020's RMD (at this point, after searching, it is probably lost). Do we still include it in our 2020 income?

Fwiw, the 1099-R shows that the financial institution that manages the account already withheld 10% for federal income tax.

[rjs]

What is your question?

It doesn't matter that you didn't cash the check. The financial institution sent the distribution to your wife. She should have gotten a Form 1099-R for the distribution. She has to enter the 1099-R in her tax return for the year that the distribution was made.

[Jordan40]

@rjs  that's strange; there was more in the question when I originally posted it. In any case, I've added more context and an actual question. Thanks for catching that!

[rjs]

Yes, you have to include it in your 2020 income. It was reported to the IRS as a distribution. The tax that was withheld will be included in the total tax withheld on your tax return, and will be applied to your tax for the year.

As I said before, as far as taxes are concerned it doesn't matter that the check is lost and was never cashed. You have to report it the same as if you got the money. Your wife should contact the financial institution and ask how she can get a replacement check. (You're probably not the first people who ever lost a distribution check.) You have to report it as 2020 income even though you don't get the replacement check until 2021 or 2022.