How do I report the reduction of 1099-R and 1099-B income that was reported to decedent's SSN for the amount received by the estate after DOD?

Forum|Forum|6 years ago
July 2, 2020
22 replies
54 views

I don't see where on the input for forms 1099-R or 1099-B I can reduce the income for the amount of income received by the estate. I have searched the help section but can't find out how to accomplish this.

I know the 1099-R amount received by the estate should be reported on Form 1041 line 8 and the stock sale that occurred after DOD should be reported on Form 1041 Schedule D. I would think it would be straightforward to do the opposite - reduce the corresponding amounts as taxable income on the decedent's return.

Thanks for your help.

ProSeries Professional

This topic has been closed for replies.

Best answer by Just-Lisa-Now-

Thanks everyone for your help. I thought there was a way PS handled these type of situations and couldn't find where to get that done on the input forms.

No, theres not a way to have PS do it automatically on the input worksheets.

C

claudetcb

Level 4

Very simple: Up to date of death, income, and expenses, are reported on the 1040; after date of death, it gets reported on the 1041. If you have a taxable 706, income reported as a decedent becomes a subtraction on the 1040; and expenses in respect to a decedent becomes an addback on the 1040, with the exception of funeral expenses, which are only a subtraction on the 706.

I would include a footnote on the 1040 in how you arrived at the income, or expenses, reported on the 1040.

T

Twaxpool56

Level 2

One question: what if surviving spouse did not apply for estate tax number ? How do I report the deceased income that shows only his social security number? He died in 2020. Can the social security number be used on form 1041?

Just-Lisa-Now-

Intuit Community Champion

If the docs arrived with the SSN on everything, Id include the full amounts on the 1040, then make adjustments on Line 21 for the retirement that will go over to the 1041, report full amounts on the 1040 for the 1099B entries and and then make an adjusting entries on the Sch B and/or D for the amount being carried over to the 1041....that way you'll avoid the CP2000 cross matching issues.

If they arrived with the EIN on everything, then same idea, just opposite.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

C

claudetcb

Level 4

No, Lisa, I would not do that. What I would do is this: Report the full amount of the 1099INT, OR DIV, on the 1040, then create another line item as: Reported to Fiduciary or Trust, or Estate of and include the EIN number as a negative amount; then place that amount on the 1041 as a positive amount. The less you describe, the better. Here is an example:

1040

Smith Barney 1234 1099DIV $ 5,000

(Less) Reported by Estate EIN xx-xxxxxxx ($ 1,750)

1041

Smith Barney 1234 $ 1,750

Hope this helps.

P

poolcleaner

Level 8

I agree with you but the problem arises when the negative qualified divided line shows it as a greater number than the ordinary dividends. We understand it but ProSeries has always been perturbed by this! Overriding the checking seems to work in some cases and not in others.

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