Reporting my income that is included on another person's 1099-R

[cheesetoast]

AXA wired funds to joint account after mom's death.  They won't send me a separate 1099.  How do I separate out and report the portion that is mine?

[Carl]

Doesn't work that way. But I need more information. Is the recipient whose SS is on the 1099-R passed away in 2016? If so, then at a minimum a "final" 2016 tax return needs to be filed on their behalf, and it would include that 1099-R. If they did pass, was an estate established by the administrator of their will? (Assuming they left a will?)

[macuser_22]

What code is in box 7 on the 1099-R.
Whose name and SSN in on it?

[cheesetoast]

Yes, recipient, mom, passed in 2016.  There is no will.  I am her personal representative.  I am listed as such on mom's 2015 taxes which I paid on her behalf.  I am now doing final return.  Box 7 says 7D.  Mom's name and SS are on it but about 60% of the total amount was actually wired to her bank account the week after her death.  The investment folks refused to issue to 1099’s splitting it pre/post death.  Technically, I am responsible for taxes on 60% (and, sadly, 10% penalty for being under 59).

[cheesetoast]

Oh, and no estate or probate.

[cheesetoast]

I was listed as joint owner of her bank account so had access to the funds wired after mom died.

[macuser_22]

A code 7D indicates that it is a non-qualified annuity paid to your mother.  It would go on her final tax return filed by  her personal representative.   If there is still money in that account, then you need to inform the trustee of her death so future payments go to her beneficiaries (if any).  If no beneficiary on the account then it would be part of her estate to be distributed according to state law in the absence of a will.

I suggest that you refer to  IRS Pub 559 (Survivors, Executors, and Administrators) that has a lot of information about filing a final tax return and estate return if necessary.
<a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/p559.pdf">https://www.irs.gov/pub/irs-pdf/p559.pdf</a>

[macuser_22]

Her estate is any money or assets such as the annuity that still existed as of her death.

[cheesetoast]

Thank you.

[cheesetoast]

I have now read most of Pub 559 and have one more question, just to clarify if I screwed up last year.  Say I was the beneficiary on the annuity that had been closed, and joint owner of the bank account where the funds from the annuity were wired.  That money is the total of all of mom's assets (less than 40k).  Was I supposed to create an estate in the year of her death to, in effect, transfer those funds to myself?

[macuser_22]

The code on the 1099-R indicated that it was not distributed to the benificuary but to your mother.   If the distribution was before death, then the distribution would be on her final return.   If after death, then part of her estate.   A beneficiary distribution to you if you were named on the annuity as the benificuary would have a box 7 code of 4D.   

We cannot offer legal advice here.   How the estate should be distributed to the heirs depends on state law and the size of the estate.  If you are the only heir then you are probably fine.

[macuser_22]

If the 1099-R is in the name of the deceased then it must be reported on the deceased's final tax return by the administrator (executor) or the estate's tax return, depending if paid to the deceased or the estate.  The income would be taxable to the estate if taxable and dispersed to the hairs by the executor according to the terms of the will or state law if no will.

See IRS Pub 559 (Survivors, Executors, and Administrators) for guidance.

https://www.irs.gov/pub/irs-pdf/p559.pdf