Get your taxes done using TurboTax

Yes, you can fix the situation by issuing form1099-INT from the decedent.  

1. You will file the received 1099-INT from the decedent and subtract the portion related to the estate.
2. Since it was a joint account, you have two options.  The remaining, can go to you or the estate. It seems filing the form with the remainder going to you makes the most sense here. See General Instructions for Certain Information Returns

Decedent:

1. For the decedent's return, enter the full 1099-INT.

2. Subtract the portion as decedent and enter your name and social as the nominee on the return - or the estate name and EIN.

 The negative number on Line 21 will adjust the income of the reported payee to the correct amount.  

You can enter a negative income adjustment with the following menu path:

1. Federal Taxes
2. Wages & Income
3. Less Common Income
4. Miscellaneous Income
5. Start
6. Other Reportable Income
7. Start
8. Other Taxable Income
9. Description = “Distribution to Nominee YYY, SSN xxx-xx-xxxx”
10. Amount = -$xxx

TurboTax will transfer this to Form 1040, Line 21, Page 1.

You can e-file with this approach because the disclosure is on the face of the return at Line 21. 

You:

You will file a 1099-INT from the decedent to you for your portion of the interest. Be sure the bank has it corrected for 2025!

Assuming you chose to be the nominee, enter the 1099-INT on your return.

Otherwise, do an estate return and enter the 1099-INT on the estate return.