topic 1099-R in Retirement tax questions

1099-R

Ed1234S — Tue, 08 Apr 2025 20:37:29 GMT

My mother-in-law took a disbursement from her 1099-R and paid the federal tax. My wife is the power of attorney. The 1099-R is in my mother-in-law's name. Do my wife and I have to worry about our tax return?

Re: 1099-R

MinhT1 — Tue, 08 Apr 2025 20:42:50 GMT

No.

Your wife as a power of attorney is not responsible for your mother-in-law's tax liabilities. This distribution has no effect on your tax return.

Re: 1099-R

Opus 17 — Tue, 08 Apr 2025 20:42:56 GMT

Your mother in law must file a tax return for any income she receives. If she is not competent, then someone who has a POA can file for her. A form 2848 is needed.

https://ttlc.intuit.com/community/taxes/discussion/how-to-e-file-as-a-power-of-attorney-for-incapacitated-person/00/2093570

If your mother in law owes taxes, and they are not paid, then she is subject to the same interest and penalties as anyone else. If she passes while owing taxes, the IRS can collect those taxes from her estate before the estate is distributed to the heirs.