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On TurboTax (Sch B- Form 1040), how do I reduce the 1099-INT reported interest by the $ that relates to the period after taxpayer's death ($ reported on Form 1041)?

 
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On TurboTax (Sch B- Form 1040), how do I reduce the 1099-INT reported interest by the $ that relates to the period after taxpayer's death ($ reported on Form 1041)?

While you are signed into your TurboTax account (desktop or online) use the steps below to enter your interest and use only the amount earned after death.

  1. Select Federal Taxes tab
  2. Under Wages & Income select Interest & Dividends
  3. Select Interest on 1099-INT
  4. Follow the prompts to enter your Interest

You can also nominee that portion of the interest from the decedent to the estate return by following the instructions here. This will provide the 1099-INT to the estate as well and reduce the amount required to be reported on the decedent's final return.

Nominee returns. 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.

  • 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:  Click here to order forms or publications from the IRS.

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Level 2

On TurboTax (Sch B- Form 1040), how do I reduce the 1099-INT reported interest by the $ that relates to the period after taxpayer's death ($ reported on Form 1041)?

While you are signed into your TurboTax account (desktop or online) use the steps below to enter your interest and use only the amount earned after death.

  1. Select Federal Taxes tab
  2. Under Wages & Income select Interest & Dividends
  3. Select Interest on 1099-INT
  4. Follow the prompts to enter your Interest

You can also nominee that portion of the interest from the decedent to the estate return by following the instructions here. This will provide the 1099-INT to the estate as well and reduce the amount required to be reported on the decedent's final return.

Nominee returns. 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.

  • 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:  Click here to order forms or publications from the IRS.

View solution in original post