Since the Form 1099-INT is reported under your social security number, then it should be included on your tax return. You will then subtract the amount from your return by showing it was nominee interest.
To do so within TurboTax, go back to the summary of the interest income you have already entered. Click Edit beside the one with the nominee amount. If you have not already entered the interest in your return, keep reading for steps to take after entering the information.
- After you click Continue when you have finished entering the information from your Form 1099-INT, the next screen is titled “Tell us if any of these uncommon situation apply to you”
- The second choice on this screen is “I need to adjust my taxable amount”
- Check this box and click Continue
- Then you will see a screen titled “Report Interest adjustment”
- Enter the amount as a positive number and the reason for the adjustment. This will make the proper entry on your Schedule B.
Also, take a look at the IRS Topic 403 – Interest Received for more details about the next step to take so that the actual owner of the interest is properly notified. Since you are the executor of the estate, be sure that the interest is properly reported by the estate instead of on your personal return.
See Filing Tax Form 1099-INT for more information.
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