Question: On February 2 0 , 2 0 2 5 , David ( age 4 2 ) and Laura ( age 3 9 ) filed a

On February

20, 2025,

David

(

age

42)

and Laura

(

age

39)

filed a joint return for Tax Year

2024 .

A week later, David received a Form

1099 -

R showing a

2024

distribution from a traditional IRA he inherited from his late father. He is unsure if this should have been included as taxable income. As their tax preparer, what would you recommend to David and Laura?

Bring a copy of the Form

1099 -

R to the tax office so you can review it

,

but inform them that death benefits are generally not taxable.

Bring the Form

1099 -

R to their next tax appointment and include it in their

2025

taxable income.

File an amended return to report the distribution.

File an amended return to report the distribution and the

10 %

additional tax

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