Question

Trust 1099Div Received Years After Death

Forum|Forum|6 years ago
February 9, 2020
2 replies
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My father-in-law passed away in 2007 and had a trust which was long ago distributed. For 2019 we received a 1099 Div in the name of the trust with my wife as the trustee from an old stock that was finally dissolved financially. We did not receive a K-1. We are using TurboTax Deluxe. When I enter his information, it does not allow me to proceed after I answer that he passed away in 2007 and it wants a 2019 date of death. The TIN is the trust number, not his nor my wife's SS number. How do I file? There is no other income to report for him in 2019. Thanks

A

Anonymous

just report it as if the trust did not exist. most likely your spouse was his heir and thus would be entitled to the dividend. do not enter your dad's info. just enter the payor and the amounts shown. the IRS will never question reporting more than what they show. should you received a notice from the IRS concerning the trust, just reply that it is been liquidated.

S

sticklogAuthor

Thank you for your answer. The dividend will have to be split with 2 other siblings, so I suppose we will deduct the tax from their distributions. The total dividend amount was a little shy of $3000, hopefully it doesn't push us into a higher tax bracket.

A

AlanT222

First, you do not have to file the 1099-Div in the trust's name with you and your spouse's personal income tax return.

Next, you must determine if the dividend is larger enough to be subject to taxes, considering it was the trust's only income in 2019.

You must file Form 1041 for a domestic trust that has any taxable income for the tax year, gross income of $600 or more (regardless of taxable income), or a beneficiary who is a non-resident alien.

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S

sticklogAuthor

Thanks, when I search 1041 in Deluxe, I cannot find, only 1040 opens.

A

Anonymous_

Employee

@sticklog wrote:

Thanks, when I search 1041 in Deluxe, I cannot find, only 1040 opens.

There is no Form 1041 in Deluxe or any other TurboTax personal income tax preparation product. In order to prepare a 1041 for a trust, you need TurboTax Business (link below) which must be installed and run in a Windows environment (i.e., no Mac or online version).

https://turbotax.intuit.com/small-business-taxes/

Just out of curiosity, did your wife (as trustee) actually receive the proceeds from the sale of the stock (that was presumably in the name of the trust)? I understand that she received the 1099-DIV, but I am left wondering how she was able to negotiate a check (or other form of payment) that was in the name of the trust, as opposed to her name.

One last thing is this: Your wife, as trustee, has a responsibility, as the fiduciary, to file any and all returns, schedules, and forms required to be filed by state and local authorities (taxing or otherwise); simply a reminder that she needs to ensure whatever procedure she selects comports with legislative and regulatory requirements.