Nominee Withholding

[czych55]

I received a 1099INT with nominee income and tax withholding. How do I transfer tax withholding to the nominee?

[HelenC12]

Since the Form 1099-INT is reported under your social security number, then it should be included on your tax return.  You could then subtract the amount from your return by showing it was nominee interest.

To enter the 1099-INT form in TurboTax: 

1. On the top row of the TurboTax online screen, click on Search (or for CD/downloaded TurboTax locate the search box in the upper right corner). 
2. This opens a box where you can type in “1099-INT” (be sure to enter exactly as shown here) and click the magnifying glass (or for CD/downloaded TurboTax, click Find).
3. The search results will give you an option to “Jump to 1099-INT”
4. Click on the blue “Jump to 1099-INT” link.
5. Enter the 1099-INT and on the Tell us if any of these uncommon situations apply screen, select I need to adjust the taxable amount and Continue.
6. On the Report Interest Adjustment screen, enter your son's interest and select the Reason for Adjustment as I received all or part of this interest for someone else (I am a nominee) and Continue.

  

[czych55]

What about the income tax withheld on the nominee interest? The previous answer shows how to treat the nominee interest but not the nominee withholding. The 1099INT I received has interest received and income tax withheld that belong to another taxpayer.

[Pete7566]

My father passed in December 2018, and I am getting final 1099's associated with his estate (example is state tax return, 1099-G).   He was not living in 2019, so is the path forward for his heirs to file 1099-Nominee forms to take the 

[KrisD15]

@czych55

For the other taxpayer, you can enter the interest without the 1099-INT under Wages & Income and enter the withholding under Deductions & Credits; scroll down to Estimates and Other Taxes Paid

[DFARRAR]

Did you ever get a good answer that really solved your problem?  I have the same situation  from a 1099-R distribution where I need to use nominee feature.  The withholding part does not want to transfer to nominee.  It thinks it is my withholding when it should be the person I am nomineeing. 

[fanfare]

Can  you transfer your withheld tax credit to someone else? Why would you do that ??

Rather, you will get your withholding back, and the other owner will pay his tax due.

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Nominee/middleman returns. Generally, if you receive a Form 1099 for amounts that actually belong to another person, you are considered a nominee recipient. You must file a Form 1099 with the IRS (the same type of Form 1099 you received) for each of the other owners showing the amounts allocable to each. You must also furnish a Form 1099 to each of the other owners. File the new Form 1099 with Form 1096 with the Internal Revenue Service Center for your area. On each new Form 1099, list yourself as the “payer” and the other owner as the “recipient.” On Form 1096, list yourself as the “Filer.”