Yes, enter one-half the amount. The adjustment you are making on this screen is that part of the dividend that will go to your sister.
Yes, you do have to prepare the 1099-DIV and give it to your sister. Your sister will report, as dividend income, the amount reflected on the 1099-DIV that you prepared. And yes, you will mail the 1099-DIV and 1096 Transmittal to the IRS. Your sister does not need to mail anything. Your sister just needs to report the dividend income on her return.
Just a reminder, as the previous post noted, the 1099-DIV form has to be the red copy from the IRS website. In other words, you will need a color printer to make the 1099-DIV you will file with the IRS. The one you give your sister can just be a copy of what you provide to the IRS.
@wendyk8
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