topic Direct beneficiary of credit union account in Get your taxes done using TurboTax

Direct beneficiary of credit union account

tcmwood — Wed, 11 Feb 2026 03:38:35 GMT

My mother died in 2022 and we filed her final tax year with my father as a joint return. They have a family trust so all property was in that joint trust left to my father. She had no other income in her name other than social security. She had one bank account that she left to my sister and I as direct beneficiaries but that did not get distributed until January 2023. My father just received a 1099 for the interest paid in 2023 on that account. HO do my sister and I handle this interest on our taxes for 2023?

Re: Direct beneficiary of credit union account

ThomasM125 — Tue, 13 Feb 2024 22:50:58 GMT

I think you mean that your father received a Form 1099-INT reporting interest income in the name and social security number of your deceased mother, but it should have been in your and your sister's name. If so, you can report your share of the interest income by entering it in TurboTax as though you had received a Form 1099-INT reporting your share of the income, and your sister would to the same for her share.

You report interest income in the Interest and Dividend section in TurboTax, then look for Interest on a form 1099-INT. Choose the option to report the Form 1099-INT manually as opposed to downloading the information. Use the form your father received to determine what numbers go in what boxes.

Re: Direct beneficiary of credit union account

tcmwood — Tue, 13 Feb 2024 23:56:57 GMT

Yes, that is the situation.

So, it is fine if we divide the interest in 2 (since my sister and I were both beneficiaries of the account) and enter this amount as if the 1099INT was sent to us? There won't be any issue that this information doesn't match what was issued by the credit union?

Re: Direct beneficiary of credit union account

PatriciaV — Thu, 15 Feb 2024 16:06:58 GMT

Your situation is not uncommon for inherited accounts. As long as you report all the interest from the 1099-INT on one or both returns, you have satisfied the requirements. Be sure you both have copies of the 1099 with your tax papers for the year.