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Posted

Client and spouse won the lottery. Each receives a payout every year with withholding. Spouse died, and now lotto winnings pay into a trust (client as beneficiary). I do the trust return and obviously my client's return. Someone said in an earlier post that there is a way to k1 withholding through to a beneficiary. Is this true? Lotto has mandatory withholding. I have been having my client pay in and then get a refund from the Trust return. It would be great if I could pass the withholding via K1. I researched this 3 years ago and for some reason came to the conclusion that I could not pass the withholding on through the k1.

Thanks for any input!

Posted

I was the one who suggested the withholding could go throught K-1. I had thought anything could pass through.

My apologies for my wrong answer.

Posted

So di I until this year, had it for the first time, a trust rec'd a 1099R with wiitholdings and I was looking all over, found read the instructions and they say no withholdings only estimated payments, so trust got a refund

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