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The payment is not a gift unfortunately. The attorney must not have been a tax attorney.
The payment goes on line 21 of your 1040 but no Self Employment tax on this should apply. So if you use a software program mark SE TAX is not applicable.
The amount will be added to your income.
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Was this a distribution form a retirement account?
No I am asking if your name was on the 1099R
Where you report this depends on who was issued the 1099R.
Then the estate is the taxpayer and you would file the 1041 for the estate
If the 1099R was in your name then you would be responsible to report on your return.
That is just who is responsible to receive the form.
Line 8—Other Income
Enter other items of income not included on lines 1, 2a, and 3 through 7. List the type and amount on an attached schedule if the estate or trust has more than one item.
Items to be reported on line 8 include:
Unpaid compensation received by the decedent's estate that is IRD, and
Any part of a total distribution shown on Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc., that is treated as ordinary income. For more information, see Form 4972, Tax on Lump-Sum Distributions, and its instructions.
We posted at same time so that delayed my answer
If this was all the estate received it should not be too difficult.
The estate would if no tax was withheld.
The money from the 1099R would be used. You would not distribute funds until tax was paid.
I would call the attorney and ask if he held any back for the tax (after you complete the tax calculation to see what is owed).
The estate will owe the tax. You as personal representative are responsible for making sure the taxes of the estate are met.
If the estate does not pay the IRS can make those that received distributions pay.
Start by asking the people the money went to. Explain to them about the attorney and her bad advise.
I am sorry the attorney advised you wrongly and that the funds were distributed.
I sincerely ***** ***** could advise that there is no tax.
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