My siblings and I shared an inheritance what tax form should we use?

Question

My siblings and I shared a pension when my father died but the company put the 1099 only to my sister is there a form to fill out so she isn't the only paying tax on the money?

Answer 1

First, I would be careful to check that the full amount is taxable. If your father had any basis in the pension then some of the amount may not be taxable and you cannot always rely on the 1099 to be right.

If you cannot get an amended 1099 or need to file right away,
I would have your sister put the full amount on her return so that it matches up with the 1099 and then put a second amount as negative saying something like "Received as Fiduciary" and put the name(s) of the other people and even their SSN's. The net amount should be only the amount she needs to pay tax on.


For Example:

Sister............. 1000
Rec'd as Fid....-500
.........................____
Taxable Amt......500

Answer 2

Sounds like your sister was the executor of the estate. If the pension was in annuities, then it is taxable income for each of you siblings. I assume a annuities are involved because annuities are one of the few forms of inheritance that is taxable, regardless the estate size.

The executor should have had the company send the money and therefore the 1099 payable to the "Estate of ..." your dad, and then she would have done disbursements to each of you. Then, you would record it as regular income.

Your sister should seek to get the 1099 amended so its linked to the estate, not her personally. If she can't do that, she should record dispersments to each of you and keep that doc in a safe place should the IRS ever ask for it.

Answer 3

Short form, consult an accountant. Slightly longer form, your sister needs to give each of you a 1099 showing your share.

Answer 4

I do not know where you are at, so the laws may be different there, but I work for a county in Kansas and here they use a form simply called an "Inheritance Form." You can find out exactly what form they use in your state by calling your County Clerk's Office. I hope that helps.

Answer 5

Your sister in-regulation would not understand what she is speaking about: a million. there's no 50% bracket. 2. we've a innovative tax gadget. even as she receives pushed right into a higher bracket, the better price in common words applies to income above that bracket (no longer ALL income).

Answer 6

Go see a tax attorney immediately.

Answer 7

go to IRS.gov or call your dad's accountant to figure out how to split up the payment.

Answer 8

Ask the lawyer who handled everything. He can help answer your question. (s)

Answer 9

I don't know.

Adopt me. I make sandwiches.