Lisa995 is correct.
You can show a negative number in Line 21 with the caption, “Distribution
to Nominee YYY, SSN xxx-xx-xxxx.” The
negative number on Line 21 will adjust the income of the reported payee to the
correct amount. The reported payee will
issue a Form 1099-MISC to the nominee payee for nominee’s share of the
distribution.
You can enter a negative income adjustment with the
following menu path:
- Federal Taxes
- Wages & Income
- Less Common Income
- Miscellaneous Income
- Start
- Other Reportable Income
- Start
- Other Taxable Income
- Description = “Distribution to Nominee YYY, SSN xxx-xx-xxxx”
- Amount = -$xxx
TurboTax will transfer this to your Form 1040, Line 21, Page
1.
You can e-file with this approach because the disclosure is on
the face of the return at Line 21.
Consequently, you do not need to attach a statement.
