We received a distribution from an inherited IRA, several thousand dollars. We received a K-1 for dividends but no 1099. How do we claim this money as income in Turbotax?

Forum|Forum|1 year ago
March 16, 2025
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VolvoGirl

Employee

If you are using the Online version you need to use Premium to enter a K-1.

To enter a K-1 go to

Federal Taxes Tab or Personal (Home & Business version)

Wages and Income

Scroll down to S-corps, Partnerships, and Trusts or to Business items

Schedules K-1, Q - Click the Start or Update button

Be sure to pick the right kind of K-1. There are 3 kinds, 1041, 1065 & 1120S

jmarkwhiteAuthor

I should have clarified - the K-1 only includes some dividend income, which is a much smaller number than the money we received as a payout. We didn't get any form reflecting the amount of the payout. I figured we should have received a 1099 but maybe I'm wrong? We asked and were told to just put in the K-1 info and then claim the payout as "other income" but I don't know how to do that without a 1099-R or anything.

dmertz

Employee

Did the estate receive the distribution from the inherited IRA or did you receive the distribution from the inherited IRA. If the estate received a taxable distribution from the inherited IRA and passed income through to you on the Schedule K-1, it would be in box 5 as Other portfolio and nonbusiness income. If you received the distribution directly from the inherited IRA in 2024, contact the custodian of the inherited IRA to obtain the missing Form 1099-R.

"We asked ..."

Who did you ask? If you asked the estate's executor or personal representative and the a taxable distribution was paid to the estate, then distributed to you from the estate, this should have been entered on the estate's income tax return (Form 1041) in box 8 as Other income so that it would propagate to box 5 of the Schedule K-1. However, if the estate paid deductible expenses, that might have reduced the amount of income taxable to the estate and the amount of taxable income passed through to you on the Schedule K-1. If taxable income was passed through to you from the estate, it needs to be on the Schedule K-1.