In which year does a beneficiary of an estate report income received under section 663?

[Katrinka]

In January  2021 I received income from an estate under section 663. In March 2021 I received a 2020 form K-1 which includes this distribution. The estate uses the calendar year. I understand that the estate reports this income as being distributed in 2020, but do I include it in my 2020 income or will I report it on my 2021 return next year? The main reason I am asking is that I did not pay an estimated tax payment and, if the income is reported for 2020, I will have to pay a penalty. I thought about filing form 2210, but technically, the income was not received by me before Dec. 31, so I don't know where to include it.

Thank you.

[Anonymous_]

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@Katrinka wrote:

I understand that the estate reports this income as being distributed in 2020, but do I include it in my 2020 income or will I report it on my 2021 return next year?

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You report the income from the estate on your 2020 individual income tax return. 

[Katrinka]

Thank you. I'd still like to know where the income would be reported on form 2210.  Would it be in the final column, or would I need to know when the estate received it and divvy it up that way?

[Anonymous_]

The income would be treated as having been received at the end of your calendar year (12/31).