Sara EA Posted June 27, 2023 Report Share Posted June 27, 2023 A dear client died in 2021. The estate is on a fiscal year, no problem there. His spouse will be filing Single in 2022. There are three 2022 IRA distributions reported to him under his Soc Sec number. IRS says the person who received them should report them; they were deposited into their joint account, so they go on her 2022 return. There was state and federal withholding on the 1099R, under his SS so I can't put the amounts on her return. The 1310 doesn't cover this situation. Any ideas how to get the withholding back? Quote Link to comment Share on other sites More sharing options...
jklcpa Posted June 28, 2023 Report Share Posted June 28, 2023 See Burke's answer. Corrected 1099R should be issued. Quote Link to comment Share on other sites More sharing options...
Lee B Posted June 28, 2023 Report Share Posted June 28, 2023 5 minutes ago, jklcpa said: See Burke's answer. Corrected 1099R should be issued. Well that will be a challenge, especially getting the WH refunded Quote Link to comment Share on other sites More sharing options...
jklcpa Posted June 28, 2023 Report Share Posted June 28, 2023 4 hours ago, cbslee said: 4 hours ago, jklcpa said: See Burke's answer. Corrected 1099R should be issued. Well that will be a challenge, especially getting the WH refunded And that is why I qualified and limited my answer to the portion of Burke's response where he said 1099R should be corrected to reflect the name and SSN of the spouse instead of the deceased. Quote Link to comment Share on other sites More sharing options...
Lee B Posted June 28, 2023 Report Share Posted June 28, 2023 As a practical matter I agree. However I do wonder whether the taxes withheld by the fiduciary are valid based on the instructions of someone who passed away in the prior year? Quote Link to comment Share on other sites More sharing options...
BrewOne Posted June 28, 2023 Report Share Posted June 28, 2023 how about a 1041?--report as income in respect to a decedent. just throwing that out there. Quote Link to comment Share on other sites More sharing options...
Sara EA Posted June 29, 2023 Author Report Share Posted June 29, 2023 The problem is not the income but the withholding. It was reported in the decedent's SS number. He died the prior year and can't file for 2022. Spouse or estate can't claim the withholding because it was reported in his SS, not hers or the estate's EIN. I'll go the route of trying to get the 1099Rs corrected. Thanks everyone for the suggestion. 2 Quote Link to comment Share on other sites More sharing options...
BrewOne Posted June 29, 2023 Report Share Posted June 29, 2023 Well, if getting corrected 1099's is a dead-end...an estate can be issued a refund. That refund can then be passed on to beneficiary. 1 Quote Link to comment Share on other sites More sharing options...
BrewOne Posted June 29, 2023 Report Share Posted June 29, 2023 I guess the first question I should have asked was: did the IRA's have the spouse as a named beneficiary on them? It does look like the custodian screwed up regardless, if they knew the owner was deceased. Normally they would have requested the estate EIN if no one was named as a beneficiary. 2 Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted June 30, 2023 Report Share Posted June 30, 2023 You could just report this on the surviving spouse's return and respond to any notices with a copy of the 1099R. Or, if the withholding is close to the tax due, simply ignore it. 1 Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted June 30, 2023 Report Share Posted June 30, 2023 On 6/27/2023 at 6:30 PM, Sara EA said: they were deposited into their joint account, so they go on her 2022 return. Why do they go on HER return when they were deposited to an account that he owns? I think you are overthinking this. He received the money, the Fiduciary indicated they were paid to him and issued the 1099Rs to him. The 1099R shows a tax withholding reducing the money that was paid to him. Put it on his return, claim the withholding, and if the IRS questions, show them the 1099R. Tom Longview, TX Quote Link to comment Share on other sites More sharing options...
jklcpa Posted June 30, 2023 Report Share Posted June 30, 2023 12 minutes ago, BulldogTom said: Put it on his return, claim the withholding, and if the IRS questions, show them the 1099R Because he died in 2021 and this was a 2022 distribution reported under his SSN on the 2022 1099R. 1 Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted June 30, 2023 Report Share Posted June 30, 2023 2 hours ago, jklcpa said: Because he died in 2021 and this was a 2022 distribution reported under his SSN on the 2022 1099R. i got my he's and her's mixed up.....sorry Tom Longview, TX 1 Quote Link to comment Share on other sites More sharing options...
Sara EA Posted July 1, 2023 Author Report Share Posted July 1, 2023 The income will go on her return, as the IRS says it should be reported by the person who received it. The withholding, however, is in his SS number, not hers or the estate's, and he can't file the year after he died. Following the good advice from other above, I asked the client to get corrected 1099Rs with her info on them. Quote Link to comment Share on other sites More sharing options...
Lee B Posted July 1, 2023 Report Share Posted July 1, 2023 10 hours ago, Abby Normal said: You could just report this on the surviving spouse's return and respond to any notices with a copy of the 1099R. Or, if the withholding is close to the tax due, simply ignore it. I think Abby's suggestion is a good backup plan. Quote Link to comment Share on other sites More sharing options...
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