How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Robin D. Your Own Question
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15596
Experience:  15years with H & R Block. Divisional leader, Instructor
14155347
Type Your Tax Question Here...
Robin D. is online now
A new question is answered every 9 seconds

I WAS MADE PERSONAL REPRESENTATIVE OF AN ESTATE. THE

Customer Question

I WAS MADE PERSONAL REPRESENTATIVE OF AN ESTATE. THE ATTORNEY TOLD ME THE MONEY I WOULD RECEIVE WAS A GIFT AND NOT TAXABLE. THEN I GOT 1099 R FOR THE AMOUNTS THAT EVERYONE RECEIVED. HOW DO I FILE THIS, AND DO I HAVE TO PAY TAXES?
Submitted: 1 year ago.
Category: Tax
Expert:  Robin D. replied 1 year ago.

Hello

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.

Please remember to rate my service excellent once you have all the information you need. If you have any other questions, please ask me – I’ll be happy to respond. Thank you!

You are required to click a positive rating if I am to be credited with the response.

Expert:  Robin D. replied 1 year ago.

Was this a distribution form a retirement account?

Customer: replied 1 year ago.
are you telling me that an estate return does not need to be filed/
Customer: replied 1 year ago.
I thought I would need to file 1041
Expert:  Robin D. replied 1 year ago.

No I am asking if your name was on the 1099R

Expert:  Robin D. replied 1 year ago.

Where you report this depends on who was issued the 1099R.

Customer: replied 1 year ago.
Customer: replied 1 year ago.
the 1099 R was issued to the estate.
Expert:  Robin D. replied 1 year ago.

Then the estate is the taxpayer and you would file the 1041 for the estate

Customer: replied 1 year ago.
with my name under the estate name listed as the personal representative
Expert:  Robin D. replied 1 year ago.

If the 1099R was in your name then you would be responsible to report on your return.

Expert:  Robin D. replied 1 year ago.

That is just who is responsible to receive the form.

Customer: replied 1 year ago.
do you know where the income goes on the 1041?
Customer: replied 1 year ago.
can you share some insight on where the 1099 R income is reported on the 1041?
Expert:  Robin D. replied 1 year ago.

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.

Expert:  Robin D. replied 1 year ago.

We posted at same time so that delayed my answer

Expert:  Robin D. replied 1 year ago.

If this was all the estate received it should not be too difficult.

Please remember to rate my service excellent once you have all the information you need. If you have any other questions, please ask me – I’ll be happy to respond. Thank you!

Customer: replied 1 year ago.
after I report the income, do I have to pay taxes since it is reported on 1041?
Expert:  Robin D. replied 1 year ago.

The estate would if no tax was withheld.

Customer: replied 1 year ago.
the estate does not have any money..there were no assets with the exception of the 1099 R income
Expert:  Robin D. replied 1 year ago.

The money from the 1099R would be used. You would not distribute funds until tax was paid.

Customer: replied 1 year ago.
The attorney distributed the funds, but told me they were not taxable. There is no money left.
Expert:  Robin D. replied 1 year ago.

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).

Customer: replied 1 year ago.
I have already talked to the attorney, she said that she was sorry that she thought it was a gift. , that I would have to pay the taxes.
Expert:  Robin D. replied 1 year ago.

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.

Expert:  Robin D. replied 1 year ago.

I am sorry the attorney advised you wrongly and that the funds were distributed.

I sincerely ***** ***** could advise that there is no tax.

When you actively click on a rating and click submit, that lets Just Answer know you were assisted and credits me for the time.

Expert:  Robin D. replied 1 year ago.

Checking back to see if you responded