Yes, that is the correct way to report the income. As you complete each return enter only the interest that applies to each return (do not enter the full amount on either return even if shown on the 1099-INT from the bank).
To go directly to the entry in TurboTax Deluxe desktop follow the steps.
- Log into your account
- In the search box on the upper right type interest income
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Jump to interest income
- Begin to enter your 1099-INT
- Use the interest amount for the return you are completing
- Be sure to check the box for more items to see the savings bond box 3 (image attached)
Next, instructions are included for you to nominee the portion of interest that belongs to you from your deceased parent.
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.
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On each new Form 1099, list yourself as the payer and the other owner, as the recipient. On Form 1096, list yourself 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.
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: Click here to order forms or publications from the IRS.
