1099-R estate (deceased brother)

[vw4motion1]

Hello, I have received the 1099-R form (recipient TIN is the estate EIN number for my brother who passed away, not my SSN) in the mail. 

The amount is $1900 and 10% was already withheld by TIAA (where my brother had this retirement account). 

1. Do I need to file 1041 for Estate (for which I need Turbo tax for Business?) Also, read somewhere there is the estate tax return (Form 706). Really confused here.

2. Any impact on my personal tax return? I deposited the check to an estate bank account (gave that money to the mom who lives abroad).

Thank you so much for helping me out.

[DaveF1006 · Accepted solution]

Yes, you will use turbo Tax Business to file a 1041 for the estate. In addition, you may need to file form 706 but Turbo Tax does not support this form.. If needed, download, fill out, and mail the Form 706 separately. Here is the form and the instructions for filling out the form. Form 706 must generally be filed along with any tax due within nine months of the decedent's date of death.

Note, the 706 Form only need to be filed if the estate  was worth over $5,450,000 on the date the owner of the state died. This point is validated in the following link. 

1. Once the 1099R and other income is reported in the return, then go to deductions and enter any deductions that are applicable to the 1041 return. Deductions are listed in federal taxes>deductions.
2. Next you will enter all beneficiaries to the estate(in the beneficiary information section), which includes the mom. Beneficiary information is listed under the General Tab section of Turbo Tax Business.
3. Next you will allocate the distribution or the 1041 by going to the distribution section of the 1041. Distributions are also  listed in federal taxes>deductions.
4. If the mom is the only beneficiary, then she will the only beneficiary listed and a K1 will be issued to her reporting that 100% distribution was issued to her. 
5. If there are multiple beneficiaries, then you may allocate portions of the distribution to each beneficiary. In this case, if the 1099R is the only taxable document received by the estate, then you will allocate the entire distribution of the 1041 to the mom. 
6. Just one note,  you will need to report the 1099R in the following manner.

• Go to federal taxes>income>other income or loss>other income or loss
• It shouldn't impact your own personal tax return if you did not receive any distributions from the estate that would cause a K1 to be issued to you. 

@vw4motion1 

[vw4motion1]

Thanks so much @DaveF1006 !!!

[vw4motion1]

@DaveF1006 , learned a bit from your post, thanks again. 

Is my thinking below correct?

1. Looks like I DON'T need to file Form 706 - Based on your post and also the link you posted, looks like I don't have to file Form 706 - the highest balance on the Estate account was $4100.00 ($1700 from pension distribution and $2400 from closed checking account). 

2. I DO need to file form 1041 as TIAA CREF sent 1099-R form to Estate -I got Turbo Tax business software for it. Not sure what to do with K1?

If Form 1041 is filed, Schedule K-1s should be generated to report this income to the heirs so they can report their share of this income on their own personal tax returns.

The money from the estate account went to my mom who needs it for 24x7 care - she lives in Europe and is not filing US tax returns. This is confusing part - how do I deal with this situation - issuing K1 to someone who does not file tax return in the US?

[dmertz]

Deleted.  See below.

[vw4motion1]

@dmertz are you sure?

”Note, the 706 Form only need to be filed if the estate  was worth over $5,450,000 on the date the owner of the state died. This point is validated in the following link. ”

[dmertz]

Sorry, I was thinking about Form 1041which DaveF1006 already indicated needed to be filed.  With a small estate value, Form 706 would only need to be filed to reserve the Deceased Spouse Unused Exemption.  That would be done only if the decedent was married.