GeorgeM777
Expert Alumni

Get your taxes done using TurboTax

To follow-up on the post from @DianeW777, you should adjust your dividend to the amount you feel represents the amount you received as nominee.  If such amount is one-half, then go ahead and make that adjustment.  You need to keep your documentation so that if you are requested by the IRS to substantiate your nominee amount, you have the evidence you need to support your entries.  

 

From your prior post, it seems you know the TurboTax screen where you can make your nominee adjustment.  That screen, Do these uncommon situations apply?, is where you can adjust the dividend.  

 

Regarding issuing a 1099-DIV to your spouse, you are correct in that the IRS instructions for nominee income do not require such form to be issued to a spouse.  Presumably, if a married filing separately taxpayer adjusts their tax return to reflect nominee income, and that taxpayer does not file a 1099 because 1099s are required for all except a spouse, then it reasonable to assume that the income must have been received by the other spouse.  However, while no 1099 is required, you are not prohibited from giving your spouse a 1099-DIV reflecting the dividend you received as nominee which actually belongs to your spouse.

 

If you choose to prepare a 1099 for your spouse, enter the information on the form consistent with the form's instructions.  Given the IRS instructions, you do not need to indicate that the receiver of the income (your spouse) is your spouse.  

 

@leo59 

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