For all 1099 forms, you would report the full amount of the IRS form on your tax return and then generate a nominee distribution as a negative entry. That way the IRS will see that the full amount of the income has been recognized on your tax return.
As an example, for dividend income:
- Go to Federal / Wages & Income / Investments and Savings / Dividends on 1099-DIV.
- If the IRS Form 1099-DIV is for $100, report $100 in box 1a. Continue.
- At the screen Tell us if any of these uncommon situations apply to you, click on I need to adjust these dividends.
- Click on I need to adjust these dividends. Continue.
- Enter $50 as the adjustment amount.
- Click on I received all or part of these dividends for someone else (I am a nominee). Continue.
View Schedule B Interest and Ordinary Dividends entries at Tax Tools / Print Center / Print, save or preview this year's return.
Part II will record the Nominee distribution amount.
You will generate the 1096 and 1099-DIV for the $50 for which you are a nominee.
@shamrock66
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