I have a joint brokerage account with my sister. How do I make the adjustment to half dividends, interest etc? Or do I just edit each amount myself?

[maxineandbarbara]

I am downloading directly from our brokerage account. In the past I thought I was  able to make an adjustment that would automatically half? Am I missing something? Thank you

[DianeW777]

It depends.  If the account is in only one of your social security numbers (SSNs) then you can simply split the funds in half for each of you or you can adjust them.  The following is an image of the dividend screens and there is a similar screen for interest.  However, any other income would create the need to enter the amounts that actually belong to each of you.  

• Search (upper right) > Type 1099int or 1099div > Select the Jump to.. link > Continue to enter your information (see the example below).

If, for example, you have qualifying dividends and ordinary dividends this may not be the best method.  Below is additional information that may be useful.

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 yourself as the payer and the other owner, as the recipient. On Form 1096, list yourself 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.

The forms filed with the IRS should be the red copy so if you don't have a color printer, go to the IRS website and order the forms here: 

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