topic nominee for tax exempt dividends in Get your taxes done using TurboTax

nominee for tax exempt dividends

jennysavakus6320 — Sun, 01 Mar 2026 19:28:25 GMT

My father died 12/15/2025 his assets were held in trust. I am trying to complete his 1040 and short term 1041.

Entering the nominee portion of his interest was straight forward. I am having trouble with the dividend portion he had regular dividends, unrecaptured section 1250 gains, non dividend distributions, Long-term capital gains. tax exempt dividends, tax exempt dividend-AMT. do I include all of those in the dividend adjustment as a total. How are the exempt dividends adjusted for California where they are taxable. Do the tax exempt items need to be show separately on the 1041 trust document if so how.

Re: nominee for tax exempt dividends

AmyC — Mon, 02 Mar 2026 23:15:18 GMT

Dividends:

Box 1a - ordinary dividends -list the full amount and enter the nominee amount. Goes to Sch B The nominee portion will go to the estate return -Form 1041, line 2a.

Box 1b - qualified dividends -only enter your father's share in the program for his return. The remainder goes to the estate return.

Boxes 2a and 2b - capital gain and unrecaptured 1250 gains - report your father's share on Sch D. The remainder goes on the estate return.

Boxes 11 and 12 - tax-exempt and AMT - report your father's share. The remainder to the estate return. The tax exempt items do need to be reported as they affect the distribution deduction. See 1041 Sch B, line 1.

CA: your federal tax exempt dividends are only tax free in CA if they come from CA municipal bonds. The supplement will show CA and federal amounts that can be exempted. Use those percentages to get the taxable amount. Prorate as best you can between the personal and estate.

Re: nominee for tax exempt dividends

jennysavakus6320 — Mon, 02 Mar 2026 23:58:51 GMT

So that would mean the

So that would mean the dividends shown on my Dad's tax return would not tie with the 1099, is that okay? Turbo Tax not does say anything about breaking those out which is why I was confused.