how to report div and int from TOD account

[Bettys]

My mom passed away at the end of 2024. I am the beneficiary of a TOD brokerage account.  (It took about 3 1/2 months to transfer the account to my name.) During that period, dividends and interest were paid. I received a 1099-Div and INT in my mother's name with her social security number from the broker. How do I report this on my 2025 taxes in Turbo tax? Is there a comment or note area in Turbo tax that this is being reported by me as the 1099 has my mom’s name and social security number?

[DianeW777]

Enter the dividends and interest on your tax return because all of the income belongs to you for 2025. You can enter two separate forms as though they both belong to you. Then you can nominee the forms in your mom's name and social security number (SSN) to you so the IRS knows what's happening.

Nominee Returns.  This is how the IRS knows what you are doing.

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. (Provided on the Form 1096)

• On each new Form 1099, list mom as the payer and you as the other owner, as the recipient. On Form 1096, list mom 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, which sounds like you are the only one.

The forms filed with the IRS should be the red copy (use the form(s) needed) so if you don't have a color printer, go to the IRS website to fill in and print the forms here:   

• Form 1096
• Form 1099-INT
• Form 1099-DIV
• Form 1099-B

[Bettys]

Thank you! 

Based on your reply:

1. I am to report the DIV and INT (from my deceased mom's 1099 statement) on MY tax return for 2025 (I use turbo tax and e-file). 
2. I am to print a nominee return so the IRS knows what I am doing by completing a 1099 DIV form and 1099 INT form along with a 1096 form? These 3 red print forms are to be mailed in an envelope to the IRS office (Utah location since I am in California)
3. How do I report this for the State income tax return (we are in California)? 

Also, you say “on each new Form 1099, list mom as the payer and you as the other owner, as the recipient. On Form 1096, list mom as the nominee filer, not the original payer.” Question - Why is she the “payer” if she is deceased - as of October 2024?  

Lastly, can any of this be done electronically (or thru turbo tax) vs. mail (hardcopy)?

[AmyC]

1. Yes, when your mother passed, the interest, dividends, etc became yours. The paperwork just didn't catch up for a few months. This means you claim it all on your tax return since you were the owner legally, just not with all the paperwork. 

When you report the dividends and interest:

• do not list the brokerage information, list your mother's name 
• do not list the brokerage TIN/EIN, list your mother's SSN 
• This lets the IRS know you got this money from your mother.
• The dollar amounts match her social security number as originally reported.

2. Responsible Parties and Nominees.  Your mother received the forms and as her personal representative, you will fill out the 1099 forms showing that she did not keep the money and it is not taxable to her. It is instead taxable to her nominee, also you.

3. No need to report to CA since CA participates in the combined federal / state filing program. The federal automatically shares those forms with CA. The only reason you would need to file CA separately is if there is a nonconformity issue where CA income is different from federal or if CA tax was withheld.

4. Yes, you will file your return as always. The nominee forms can be filed with the IRS through Information Reporting Intake System (IRIS) or you can mail them in. For additional help with your 1099 nominee returns, see more here.

I am so sorry for your loss.