You are a nominee recipient for your siblings share of the proceeds and should issue a 1099-MISC to your siblings to report their share. The 1096 form is a cover sheet sent to the IRS along with copies of the 1099s you give to your siblings. You can download Form 1099-Misc and Form 1096 from the IRS website.
If they have already filed, they may need to Amend their returns to include the income.
Enter the full amounts listed on the 1099-S in your return. You can enter the nominee adjustment in the Less Common Income section in TurboTax using these steps:
- Click on Federal > Wages & Income
- In the Less Common Income section , click on the Start/Update box next to Miscellaneous Income, 1099-A, 1099-C. On the Miscellaneous Income screen, click on the Start/Revisit box next to Other reportable income.
- On the Any Other Taxable Income? screen, click the Yes box.
- Add your siblings amount as a negative number and put 'nominee adjustment' as the description on the next screen, Other Taxable Income.
- This amount will appear on line 8 of the 1040 (Other Income from Schedule 1).
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