1099R and 1041

Forum|Forum|3 years ago
March 6, 2023
2 replies
29 views

Hi,

Doing a 1041 that includes a 1099R with Federal Withholding. Is there any area within the 1041 to allocate that withholding to the beneficiaries of the K-1. I see that dividends and interest are able to be allocated but not with 1099R's or maybe I am not doing it correctly? Is this possible or does the withholding go flow back to the Trust only as a form of a refund? Any help is appreciated.

Thanks

ProSeries Professional

This topic has been closed for replies.

Best answer by itonewbie

You generally can't allocate regular tax withholding to beneficiaries. It's different for backup withholding and estimated tax payments. See this older discussion with citation:

https://proconnect.intuit.com/community/proseries-tax-discussions/discussion/the-treatment-is-codified-in-643-allocation-of-withhol/01/8341/highlight/true#M809

Just-Lisa-Now-

Intuit Community Champion

I dont think theres a way to allocate withholding to beneficiaries. I tell them to choose NO withholding on distributions, get the full amount, then distribute to the beneficiaries so they can make estimated payments for the income on their returns.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

K

KobebeanAuthor

Level 3

I ended up putting the withholding in slot 4 of the dividend worksheet by itself, that way I could allocate to beneficiaries through the k-1 on the tax payments page. Not exactly the correct place but at least it's ended up in the right place. Not sure why you can do the same for 1099R withholding.

M

msmith7305

Level 6

Only estimated taxes can be allocated to beneficiaries. And only via an election.

Income tax withholding cannot be allocated to beneficiaries. You can get a refund and then split that up.

itonewbieAnswer

Level 15

You generally can't allocate regular tax withholding to beneficiaries. It's different for backup withholding and estimated tax payments. See this older discussion with citation:

https://proconnect.intuit.com/community/proseries-tax-discussions/discussion/the-treatment-is-codified-in-643-allocation-of-withhol/01/8341/highlight/true#M809

---------------------------------------------------------------------------------Still an AllStar

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