Trust 1099-R Federal Income Tax Withheld

Forum|Forum|3 years ago
March 7, 2023
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My mother passed last year and I'm trying to create a 1041 for her Estate's investment proceeds and related K-1. The 1099R has Proceeds and Federal Income Tax Withheld. Is it acceptable to the IRS to pass the Tax Withheld directly to the K1 on Line 13? I have read conflicting opinions. Thank you!

TurboTax Business Windows

JulieS

No, if the recipient of the 1099-R is the trust or your mother, you should enter the tax withheld on line 26 of the trust return.

To do that in TurboTax Business:

Open the trust return and select the Federal tab.
Select Other in the second row of tabs.
Select Start or Update to the right of Other Tax Withholdings.
Enter the amount in the box and click Continue.

This applies the tax withheld to the trust return.

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phackman7Author

Thank you. So I'll have to wait for the IRS to refund the 1041 in order to get that "credit" of the tax withheld over to the beneficiary. Is that correct?

JulieS

Yes, if the trust is due a refund, the IRS will issue a check to the trust which you can deposit in the trust account and then distribute to the beneficiaries according to the trust agreement.

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