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Form 1041 Line 8 income to PA-41

Forum|Forum|5 years ago
February 15, 2021
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I am preparing a return for an estate that had income reported on a 1099-R with Box 7 code 4. Review reports "You have reported other income on line 8 of federal Form 1041. Review the PA government instructions for reporting this income on the PA-41."

Any suggestion how to proceed? I don't find any helpful info in the PA-41 instructions

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Best answer by ThomasM125

If you look at the Taxable Income portion of the instructions to form PA-41 (page 6) there is mention of Income in Respect of a Decedent (IRD), that should not be reported on form PA-41.

IRD is income associated with compensation that was not reported on a tax return during the lifetime of the deceased. It is clear that wages, a final paycheck for instance, would not be reported on form PA-41, so that may also extend to a pension distribution.

Here is an interesting article on this that you may find helpful:

https://resources.evans-legal.com/?p=4954

T

ThomasM125Answer

If you look at the Taxable Income portion of the instructions to form PA-41 (page 6) there is mention of Income in Respect of a Decedent (IRD), that should not be reported on form PA-41.

IRD is income associated with compensation that was not reported on a tax return during the lifetime of the deceased. It is clear that wages, a final paycheck for instance, would not be reported on form PA-41, so that may also extend to a pension distribution.

Here is an interesting article on this that you may find helpful:

https://resources.evans-legal.com/?p=4954

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