My father died in November and I am doing his final 1040 in Turbotax. His 1099-DIV includes amounts for the entire year, but the investment company won't issue corrected 1099s that break out pre- and post-death amounts. They did provide a history report listing all transactions between the date of death and the end of the year.
The 1099 boxes in question are listed below with the 1099 values and the after-death values determined from the history report.
- Ordinary dividends (box 1a): $8,302 total, $3014 after death
- Qualified dividends (box 1b): $8,151 total, $2875 after death
- Section 199A dividends (box 5): $137 total, all after death
There are amounts in box 11 ($3,679) and box 12 ($473), all paid before death. There also is an amount in box 2a ($3,989) that was paid after death but I think I have that handled via a manual override on form 8949, part II.
When entering the 1099 in TT I also entered a nominee distribution of $3014 to account for the dividends that were paid after death. But schedule B shows an amount of only $2035.82 subtracted out for the nominee distribution. (Not sure where the $0.82 comes from when I’ve entered only whole numbers. Presumably it’s doing a calculation of some sort but I can’t figure out where or how.)
It seems that TT prorates a nominee distribution based on the amounts for each individual dividend box, but how does it do it and does that explain the discrepancy? Frankly, proration seems a bit arbitrary given the differences in tax handling among the boxes and the fact I need to account for specific values in specific boxes (but not all of them) in documenting nominee distributions.
Most importantly, how do I make it right in TT? Manual overrides on schedule B and the 1040? Something else?
And for the TurboTax folks: Why doesn't TT allow for separate nominee distribution entries for each applicable box on 1099-DIV?
Thanks in advance!
