1099 R Payable to Estate

[Robin]

I understand how to handle the distribution on the 1041 which will be designated as the final.

The 1099R had FWT which I would like to pass through to the 2 beneficiaries via their K-1 (along with the taxable portion of the distribution), resulting in -0- tax on the 1041. The software seems to indicate that the estate should receive the refund. Can th beneficiaries use their share as a payment on their individual 1040's. If, so where does it go on the K-1. Box 13?

Robin

[kcjenkins]

Line 14? But seems like the proper way is to get the refund through the 1041, which would then be distributed to the benes.

[BulldogTom]

I like KC's approach to this. Let the trust or estate take the refund into cash and then distribute it to the beneficiaries. Clean.

Tom

Lodi, CA

[Robin]

Thank you for your feedback KC & Tom. I was hoping to avoid a step in just having the 2 beneficiaries take it as a credit on their individual returns, instead of having to wait/ then disburse the refund. Looks like it could have worked with estimated payments but not with withholding????

Robin