BobKamman
Level 15
12-18-2020
12:49 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Taxable income to beneficiary shouldn't be more than amount actually distributed to him. If the 1099-R was for $50,000 and the creditors got $20,000, the beneficiary should have received $30,000 and should pay tax on it. The estate may have $20,000 taxable income and should have set aside enough money to pay that tax before making final distribution.