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Posted: 2/1/2011 2:17:59 PM EDT
[Last Edit: 2/1/2011 2:18:56 PM EDT by Chromekilla]
Hey guys,


I am trying to figure out how to put this on my taxes. My mother was enrolled in a work retirement plan, when she died. I am trying to figure out where I enter this on my taxes. It is a beneficiary disbursement with it split three ways between myself and my siblings. It isn't much around $1k gross payment, but I did have state and federal taxes withheld from it.

Link Posted: 2/1/2011 2:19:58 PM EDT
You should get a 1099 for it, and enter it like other retirement income.
Link Posted: 2/1/2011 2:23:32 PM EDT
Originally Posted By AzSteven:
You should get a 1099 for it, and enter it like other retirement income.


That is what I thought too. I haven't received a 1099 just a display of where the money went. It says on the form I got that "The taxable amount of your withdrawal including any tax withheld, should be included in your gross income for the current tax year." The amount will be reported to the IRS and you will receive a tax reporting form, next January.


I do appreciate the help and I would really rather try and learn this myself instead of paying someone to do it. Although I am using a couple of different websites with tax prep software to check my results and efile.
Link Posted: 2/1/2011 2:24:33 PM EDT
[Last Edit: 2/1/2011 2:25:24 PM EDT by 44Regular]
No expert here, but I don't think it's taxable to you. Interest earned in the account after the date of death probably is. Is there a Trust? Schedule K-1.
Link Posted: 2/1/2011 2:25:48 PM EDT
Link Posted: 2/1/2011 2:28:05 PM EDT
Originally Posted By 44Regular:
No expert here, but I don't think it's taxable to you. Interest earned in the account after the date of death probably is. Is there a Trust? Schedule?


All I received is a form that displays the amount that was in my gross payment with the total deductions and what the check amount was for. She died in 2008 when I was 16, and its been a long deal to get the tax situation figured out, and my grandmother handled the estate and she chose the option of doing the bare minimum. Since I didn't receive a 1099 I am thinking that it may be for next years tax year although it says this


"We have completed your request for a total withdrawal, a check is attached." "The taxable amount of your withdrawal, including any income tax withheld, should be included in your gross income for the current tax year." "The amount will be reported to the IRS and you will receive a tax reporting form next January."
Link Posted: 2/1/2011 2:28:47 PM EDT
Originally Posted By AeroE:
You'll need a schedule K from the estate's personal representative.



So from my grandmother then since she handled that?
Link Posted: 2/1/2011 2:35:31 PM EDT
Sounds like you wait till "next January" like the form says.
Then you should get an official IRS recognized form (1099-R or something)
that again lists gross, withholding, etc.
DanM
Link Posted: 2/1/2011 2:37:24 PM EDT
Originally Posted By DanM:
Sounds like you wait till "next January" like the form says.
Then you should get an official IRS recognized form (1099-R or something)
that again lists gross, withholding, etc.
DanM


Yeah that is my assumption too. But then I get into the current year tax reporting. Does current year mean, 11 tax year, or 10 tax year( which is what I am working on now).?
Link Posted: 2/1/2011 2:38:44 PM EDT
Link Posted: 2/1/2011 2:42:11 PM EDT
Originally Posted By AeroE:
Originally Posted By Chromekilla:
Originally Posted By AeroE:
You'll need a schedule K from the estate's personal representative.



So from my grandmother then since she handled that?


Yes, but now that you gave us more information you need to dig into the tax instructions. You can call the IRS for help, too, but count on being on hold for a long time. You could also call the company that issued the check for more information.

The estate's personal representative (or still called the executor in some states) has a fiduciary responsibility to make sure everything is right while in that role. In Missouri, the probate court provides very close supervision of the entire process except for dealing with the state and Federal taxes. The instruction books are intimidating, even for a fairly simple estate, but there is a pile of paperwork demanded by the IRS. (Missouri was simple.)

If you received the check in 2011, then report it as 2011 income according to the instructions.


I appreciate it buddy. I am trying my best to get this all done myself, but figuring out how financial aid etc. all applies is a bit tough. I figure I better learn now than later. You guys are awesome.
Link Posted: 2/1/2011 2:52:53 PM EDT
On a sucky note it appears that as a college kid who isn't claimed on his parents taxes, and not being 25 I am not eligible for any of the tax credits, and I owe some money. If I was on welfare I'm sure I would just be taking money hand over fist and not owing nothing, yet a hard working college guy gets fucked.
Link Posted: 2/1/2011 11:22:42 PM EDT
Again, I don't know much about this but is the payout a life insurance proceed with you as the beneficiary? Might not be taxable at all.
Link Posted: 2/1/2011 11:36:13 PM EDT
[Last Edit: 2/1/2011 11:37:09 PM EDT by sherrick13]
Did you not get a 1099-R?




Was the distribution taken in 2010?
Link Posted: 2/1/2011 11:40:23 PM EDT
Originally Posted By sherrick13:
Did you not get a 1099-R?




Was the distribution taken in 2010?


No which leads me to believe that I will be using it for 11 year, I wouldn't guess they would have me figured out the 1099 details given what I have.
Link Posted: 2/1/2011 11:44:31 PM EDT
[Last Edit: 2/1/2011 11:45:04 PM EDT by sherrick13]

Originally Posted By Chromekilla:
Originally Posted By sherrick13:
Did you not get a 1099-R?




Was the distribution taken in 2010?


No which leads me to believe that I will be using it for 11 year, I wouldn't guess they would have me figured out the 1099 details given what I have.

Was the distribution taken in 2011? Since Jan 1?

If so, you will recieve a 1099-R next Jan and it will go on your 2011 return.
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