oh no tax help (re survivor annuity)

[ez]

I mailed my taxes in last Saturday. Now today we got a statement from the government, form 1099R on a 732.00 survivor annuity paid to my husband last year when his dad died. I had no idea we should be expecting this, especially not to receive it until February (it is postmarked the 31st)! So is this something we should have paid taxes on? My husbands dad was a 100% disabled vet, if that matters. WE are expecting a very large tax return which we really need to get in our bank account. I'd hate to have something like this muck up the works...what should I do?????

 

[HM]

File an ammended return.

 

[Pakey]

Yes, file an amended return. And FYI, 1099's didn't have to be postmarked until Feb 1 this year so they are well within their deadline.

 

[DisTeach1]

Well, on your 1099R does it say that it's "taxable"? There should be a box that is checked. If it's taxable, you can always roll it over into your own IRA to avoid the taxes. If it's not taxable, then you should still file and amended return but it shouldn't affect your refund.

We got $28,000 and just found out that all of it is taxable, per the 1099R's and that we probably need to put it in an IRA because I do not want to pay taxes and penalties on $28,000.

 

[golfgal]

What is the code they checked on the 1099?

 

[deva]

you can always roll it over into your own IRA to avoid the taxes

Nope. Only spouses can do that. If it is a qualified plan, you may be eligible to roll over into an inherited IRA in which case you'd need to be taking required minimum distributions (that would also be taxable).

Sounds like this might be a one time thing. In which case you need to amend. This should not mess up your current refund (usually it takes the IRS longer to compare matching forms). Just file a 1040x and pay the additional tax due. File by 4-15 to avoid any interest/penalties.

 

[golfgal]

Nope. Only spouses can do that. If it is a qualified plan, you may be eligible to roll over into an inherited IRA in which case you'd need to be taking required minimum distributions (that would also be taxable).

Sounds like this might be a one time thing. In which case you need to amend. This should not mess up your current refund (usually it takes the IRS longer to compare matching forms). Just file a 1040x and pay the additional tax due. File by 4-15 to avoid any interest/penalties.

Some annuities have a "death benefit" that is actually paid out like life insurance and is not taxable to the beneficiary. If that is the case there may not be a need to amend-or you can amend but not owe any tax.

 

[deva]

Some annuities have a "death benefit" that is actually paid out like life insurance and is not taxable to the beneficiary. If that is the case there may not be a need to amend-or you can amend but not owe any tax.

Agreed, in which case it would be marked as not taxable. PP had suggested "rolling over" if it is marked "taxable" which is not allowed.