You, you are correct. Income in any year after the final return belongs to and is reported by the beneficiary. You can easily nominee the income to yourself and your brother, allowing each of you to report half the income and half the federal withholding. Those steps are provided below. You do not have to delay filing your returns. I am sorry for your loss.
Filing with the IRD (you could add the last 4 of your deceased mother's SSN if you have it) is the correct approach.
You can add the federal withholding by using the steps below.
- Sign into your TurboTax account > once inside the return select Deductions and Credits at the top
- Scroll to Estimate and Other Taxes Paid > Show More > Start/Revisit beside Income Taxes Paid > Scroll to Other Income Taxes Paid in 2021
- Continue to Start Withholding not already entered on a W-2 or 1099
This will allow both federal and state additional withholding not entered in any other location.
Nominee returns.
Generally, if you receive a Form 1099 for amounts that actually belong to another person or entity, you are considered a nominee recipient. You must file a Form 1099 with the IRS (the same type of Form 1099 you received). You must also furnish a Form 1099 to each of the other owners.
File the new Form 1099 with Form 1096 (this is a transmittal for the 1099) by mailing to the Internal Revenue Service Center for your area. (Provided on the Form 1096.)
- On each new Form 1099, list your mother as the payer and the other owner(s), as the recipient. On Form 1096, list your mother as the nominee filer, not the original payer. The nominee is responsible for filing the subsequent Forms 1099 to show the amount allocable to each owner (one for you and one for your brother).
The forms filed with the IRS should be the red copy so if you don't have a color printer, go to the IRS website and order the forms here:
@hybridtaxguy
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