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1041: HOW TO REPORT 1099R THAT HAS A LOWER TAXABLE AMOUNT THAN BOX 1 WHAT DOES CODE D 2 MEAN?

MiJoMo01
Level 2
 
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MiJoMo01
Level 2

Yes, that is what I finally did.  Remember, the 1041 Estate and Trust Form does not show a 1099R in the forms selection.  I finally had to manually hack it by putting in the amount of reduction between box 1 and box 2 as a negative figure in the "Other income" input line 8, and then line the reduced amount shows up in the right-side income on line 8

  Thanks for your response.

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qbteachmt
Level 15

Here is a Help article, with Codes:

https://proconnect.intuit.com/community/individual/help/proseries-form-1099-r-faq-s/00/4853

 

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Just-Lisa-Now-
Level 15
Level 15
Use the amount in the Taxable Income box.

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Accountant-Man
Level 12

I report both in Other Income, line 8. i.e.,

Gross distribution           $10,000

Less non taxable portion $-9,000

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qbteachmt
Level 15

If that code means this is from an annuity, there likely is basis or costs that explain the gross vs taxable difference.

More details always help.

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MiJoMo01
Level 2

Yes, that is what I finally did.  Remember, the 1041 Estate and Trust Form does not show a 1099R in the forms selection.  I finally had to manually hack it by putting in the amount of reduction between box 1 and box 2 as a negative figure in the "Other income" input line 8, and then line the reduced amount shows up in the right-side income on line 8

  Thanks for your response.

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MiJoMo01
Level 2

I also put Code D - 2 on Line 8 to distinguish the character of the distribution.

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sjrcpa
Level 15

That Code D also indicates this is subject to Net Investment Income tax so take that into consideration for Form 8960 and/or K-1s


Ex-AllStar