Distributing an Estate's Federal Tax Refund to a Beneficiary
I am executor of my father's estate. There was a 1099-R from an 403B account that was paid out to the estate, and I've completed the 2024 estate 1041 tax return. I was the sole beneficiary of the estate, so I received a K-1 from the distribution. The estate will receive significant federal and state tax refunds for the 1099-R taxes withheld. (Meanwhile I have hefty taxes owing personally). My requestion relates to 2025 returns for the estate. I don't think the federal refund would be reported as income (as federal refunds are not reported as income for individuals); state refunds are considered for individuals as whether they may be taxable, but I can't tell from the 1041 if a state tax refund for 2024 taxes will need to be reported as income for the estate for 2025? Otherwise, the estate will not have more than $600 income in 2025. Once received, the tax refunds will be distributed to me as a beneficiary, so will I need to file a 1041 regardless to report distribution to beneficiary? I feel like this money from the refunds has already been taxed and then would be passed through with a K-1 for me to pay taxes on it again, but maybe I'm just confused. Thanks for any insights!