Yes. Dividends from inherited mutual funds would be taxable to each sibling. If you received a 1099-DIV for 2022, you would enter this in TurboTax by following these steps:
- Select Federal from the left menu, then Wages & Income
- Locate the section titled Investments & Savings and select Show More, then select Start or Revisit next to Dividends on 1099-DIV
- Select Okay! On the screen Time to kick off your investments! OR Yes on the screen Did you receive any dividend income? then Continue
- Add investments or Add another 1099-DIV, then Continue
- Enter your information as listed on your 1099-DIV
- Follow the on-screen instructions to enter the info from your 1099-DIV
- When you reach the screen Here's your 1099-DIV info, the form you just entered should be listed
You will want to keep record of your cost basis at the date of death and selling documents once the mutual funds are sold, for filing in 2023. When the sale occurs in 2023, it would be reported on the 2023 return.
How to enter a 1099-DIV in TurboTax
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