Deceased Parent Estate receiving 1099-R

[stephanieannyoung0168]

Hi, I am not sure what to do. My father passed in 2023. I filed a return (which I thought was final) through TurboTax as the Executor in 2024. I have now received 3 1099-R forms for the Estate. Do I have to claim these distributions as income? Is inheritance income as a beneficiary. I am confused as to what I need to file and if I am going to owe taxes on this or not. Or do I just file a 1041 for my father?

[RobertB4444 · Accepted solution]

1099-R forms represent money paid out of a retirement account.  That is money that was not taxed while your father was alive and you do need to pay taxes on it now that he has passed.

You've got a couple of options for how to handle this.  The easiest is - IF YOU ARE THE ONLY BENEFICIARY - to just put these 1099-Rs on your personal return.  When you enter them into TurboTax you will have to indicate that they were paid to a different EIN than your social security number.  But they will just be taxed as income to you since that is what they are.

If you are not the sole beneficiary then you should file a form 1041 for the estate showing all of the income that way.  Then the estate can pay the taxes due or you can transfer the money through K1s to your and the other beneficiaries tax returns.

@stephanieannyoung0168 

[stephanieannyoung0168]

Thank you so, so much! What a bummer, IRS wants every penny don't they. I was told by Fidelity that he would not be taxed on this distribution, so strange they would tell me such. Oh well. And, unlucky I am not the only beneficiary, but then again, I am glad I am not taking the full hit. So I will file a 1041 and pay the taxes owed through the estate, which is insolvent, but guess I'll be forking up the owed amount. (blah!) 😉

[RobertB4444 · Accepted solution]

There may be taxes withheld on the 1099-R to cover the amount due.  Make sure to enter all of the information when youdo the return.

@stephanieannyoung0168 

[stephanieannyoung0168]

You are right. there is fed/state on the big one that is $48K. The other two small ones at $127 and $475 do not, but I am happy for anything taken out, looks like they withheld 10%, which I will take and lessen the blow. Thank you again so much Robert!