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Estate distribution from Insurance Company

Forum|Forum|4 years ago
March 29, 2022
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Received a 1099-R from Life Insurance Company for a Lump Sum payment for a remaining balance Annuity of deceased dad in the name of the Estate. Federal and State Taxes were taken out prior to final payment to the estate. The remaining balance was equally divided among the beneficiaries by the estate executors. How is this reported on the Tax Return of the Estate and do the amount that each beneficiary received need to be reported to them on individual 1099-R?

Best answer by LeonardS

You will enter the estates Form 1099-R on IRS Form 1041, U.S. Income Tax Return for Estates and Trusts. This link https://How do I file Form 1041 for an estate or trust. has information you may find useful.

LeonardS

The estate will report Form 1099-R from the Life Insurance Company on its estate tax return. The estate will provide each beneficiary with a Schedule K-1 (Form 1041) Beneficiary's Share of Income, Deductions, Credits, etc. to report the amount they received.

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StricklandHortonAuthor

My problem is which form do I put the 1099-R information into for the Estate Tax Return. Do I change the assumption of "Received earnings of any individual" should the assumption be changed to "YES"?

LeonardSAnswer

You will enter the estates Form 1099-R on IRS Form 1041, U.S. Income Tax Return for Estates and Trusts. This link https://How do I file Form 1041 for an estate or trust. has information you may find useful.

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