Question

What form do I use to file taxes for a beneficiary ira

Forum|Forum|5 years ago
February 18, 2021
1 reply
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My family inherited a trust that has been distibuting over 8 years but would like to close out and take care of any tax liability. What do i need to do?

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ThomasM125

You should instruct your plan administrator to withhold taxes based on what you think will be owed and distribute the balance to you.

To estimate the taxes to be withheld, you would have to know the taxable portion of the pension and estimate what your income will be in 2021 based on your normal estimated income plus the taxable portion of the pension distribution.

You can use the TurboTax Taxcaster program to estimate your income tax as follows:

https://turbotax.intuit.com/tax-tools/calculators/taxcaster/

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U

userbdupuisAuthor

We did withhold, most likely too much. How do I go about filing for a refund

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ThomasM125

When you file the trust tax return, form 1041, you will enter the tax withheld on line 14 of Schedule G "tax withheld." You will then get a refund when you file the trust tax return.

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