I received a 1099-int from a bond I cashed in, post-divorce. The bond was purchased under my name alone so the 1099-int only has my name and SSN/Tax ID on it. I had to give half the proceeds to my ex-spouse because it was purchased with marital money, so the taxes due must be split 50/50.
My understanding is I am the "Nominee Recipient" of the 1099-int.
The procedure as I understand it would be:
1) Create a new 1099-int listing me as the payer and my ex spouse as the recipient for their share (50%).
2) Provide this new 1099-int to my ex spouse
3) Send the new 1099-int I created to the IRS with form 1096 (listing myself as the nominee filer)
This brings up a bunch of issues and questions for me...
1) Am I missing anything in the above? Is a step missing? Am I wrong?
2) Do I have to generate a new 1099int for myself also? (reflecting my 50%)
3) I can't print out the 1099int website pdf because it's not the genuine "red ink" version. I did order a copy from the IRS but not sure when it will arrive. Is there a way to have TurboTax deluxe generate this form 1099-int and efile/submit it to the IRS for me so I don't need form 1096 and a red ink original 1099-int?
