Received 1099-R for Deceased Parent

[DaveF1006]

Let's back up!! You can prepare the 1099R you received and split between both your mother's return and the trust. You would prepare two 1099R's, one for your mother personal return and the trust return reporting the 1/2 amounts in each.

You would enter 1/2 the amount of the  distribution in Box 1 and 2A for each 1099 R you prepare for both returns. This way, no adjustments are needed.

[MaryAnn211]

Thanks for your reply! If I split the original 1099R, what happens to it? Does the information on the original not have to be reported anywhere. Will the IRS not be looking for that info?

[DianeW777]

Yes, it's possible and you have two options --

1. Simply split the income as you have done, keep the forms in your tax file and answer any questions if the IRS does inquire.
2. Nominee the original 1099-R to each correct recipient.  See the instructions below.

Nominee returns. 

Generally, if you receive a Form 1099 for amounts that actually belong to another person or entity, you are considered a nominee recipient. You must file a Form 1099 with the IRS (the same type of Form 1099 you received).  You must also furnish a Form 1099 to each of the other owners. 

File the new Form 1099 with Form 1096 (this is a transmittal for the 1099) by mailing to the Internal Revenue Service Center for your area. It is provided on the Form 1096.

• On each new Form 1099, list the original recipient as the payer and the other owner or owners, as the recipient. On Form 1096, list the the other owner as the nominee filer, not the original payer.  The nominee is responsible for filing the subsequent Forms 1099 to show the amount allocable to each owner.

You can go to the IRS website using the links below for the necessary forms. 

• Form 1096
• Form 1099-R

@MaryAnn211