Which 1099

You would file a 1099-R form with the IRS showing who actually received the payment. You are the Nominee in this situation and you name who received part of the payment. Then, when you file your return, you show half of the income in your return. Then you will send a 1099-R to your ex for half of the amount as the “nominee amount.” Thus only your portion of the income is included in your taxable income which will be 50%

 

Nominee Actions/Returns:

Generally, if you receive a Form 1099 for amounts that actually belong to another person or entity, you are considered a nominee recipient. You must file a Form 1099-R with the IRS (the same type of Form 1099 you received).  You must also furnish a Form 1099-R to each of the other owners. 

 

File the new Form 1099 with Form 1096 (this is a transmittal for the 1099-R) by mailing it to the Internal Revenue Service Center for your area. (Provided on the Form 1096)

• On each new Form 1099-R, list yourself or the original Payee as the payer and the other owner, as the recipient. On Form 1096, list yourself or the original Payee as the nominee filer, not the original payer.  The nominee is responsible for filing the subsequent Forms 1099 to show the amount allocable to each owner.

 

The forms filed with the IRS should be the red copy so if you don't have a color printer, go to the IRS website and order the forms here: 

• Form 1096-Transmittal 
• Form 1099-R

 

Split the amount as needed and enter only the necessary portions on the appropriate returns.