Pension 1099-R for deceased spouse

[LouD]

Husband died Nov 2013 but here in 2014 we receive 1099-R in his name and SS# of $1,650 with small IRS & state withholdings.  I'm not sure why it was issued in his name with a 2013 DOD, but need help in avoiding matching issues with IRS.

 

Would like to report the 1099-R on the wife's return (since she obviously received the income), but not sure how best to reflect since it's husband's SS# - just attach a statement to the return?

 

Thanks for any help!

[Randall]

Did wife inherit 100% of the IRA?  If so, I think I would just report it on her return and with a statement explaining the 1099-R being incorrect.  Also, make sure she has the account changed to her name and ssn.

[LouD]

It wasn't an IRA but was husband's pension payments - which should have stopped upon his death in Nov 2013, but there must have been some additional payments that were due that fell into 2014.  

[Janitor Bob]

I would just include it as other income with an explanation/statement attached. 

[Pacun]

Paper file with a W-2 substitute form.

[TAXMAN]

I had 1099r from regular pension issued in decease's spouse name and # for 2014. Spouse decd in 2013. Asked state to fix this since it was a state pension. No response from them even after 3 letters explaining. At a recent class I brought this up and was told: Get a fed id# for an estate for spouse. Distribute out income and federal withholding to husband in 2014. What do you think of this idea?

[kcjenkins]

It would work.  Stupid that you have to go to so much work because some state employee is too lazy to do it right, but not much else you can do.

[Burke]

In this case, you may have problems.  Easy enough to report the income on wife's return.  No argument from IRS.  The problem is, the withholding was reported under the deceased's SSN and she cannot get to it.  And you cannot file a return for the deceased for the year after death and ask for a refund.  I had the exact same problem a few years back and after some effort located the Tax Unit of the custodian who was responsible for issuing the 1099R.   Read him the riot act, and told him he had two choices:  either issue a corrected 1099R with payee's SSN on it, sending corrected copies to IRS, or issue a refund of the taxes withheld and adjust their next withholding report accordingly. (This was from instructions from IRS, BTW.)  He chose Option #1 and we were able to file on spouse's return and get credit for the withholding.   I would think you will have the same problem with the state.  Even getting an EIN and filing through the estate, it is still the same situation.  Withholdings are not under the estate's EIN either, so no credit. 

Edited February 21, 2015 by Burke

[Pacun]

If you cannot make the issuer to correct the 1099-R, file a W-2 substitute form. That's why the form exists and has fields for you to enter explanations.