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Where do I enter a nominee distribution I paid to someone else and reported on form 1099-INT? I can't seem to enter it as the IRS suggests on SCD B Line5 below total

I have an account I manage for a family member. The interest is reported by the bank to me. I completed a 1099-INT showing the interest was paid by me to the family member. The IRS requires that this be reported as a negative entry on 1040 Schedule B Line 5 below the total. Turbo Tax does not seem to allow any negative numbers or editing the Schedule B.
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1 Reply
DawnC
Employee Tax Expert

Where do I enter a nominee distribution I paid to someone else and reported on form 1099-INT? I can't seem to enter it as the IRS suggests on SCD B Line5 below total

You will enter the necessary adjustment on the 1099-INT screen.   Go back and edit the entry you made to report the 1099-INT.   Follow these steps:

 

  1. After you click Continue when you have finished entering the information from your Form 1099-INT, the next screen is titled Tell us if any of these uncommon situations apply to you
  2. The second choice on this screen is I need to adjust my taxable amount 
  3. Check this box and click Continue
  4. Then you will see a screen titled Report Interest adjustment
  5. Enter the amount as a positive number and select the reason for the adjustment (I am a nominee).  

 

This will make the proper entry on your Schedule B.

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