topic dividends and interest for deceased in Get your taxes done using TurboTax

dividends and interest for deceased

taxcurious2 — Mon, 09 Mar 2026 05:51:27 GMT

I'm filing a 1040 tax return for my deceased mother. There maybe is $165 of estate income post the

date of death, so no 1041 is required as it is under the $600 limit.

How do I deduct the $165 from the income? Should I deduct on the 1099-int and 1099-div as I enter, or use the actual values (maybe the irs matches those?) and deduct somewhere else? or just pay the tax on the extra $165? (probably about thirty or forty bucks or so).

Re: dividends and interest for deceased

Anonymous_ — Thu, 17 Feb 2022 16:37:14 GMT

In the income sections (for interest and/or dividends), check the box to indicate you need to adjust the taxable amount.

Re: dividends and interest for deceased

Anonymous_ — Thu, 17 Feb 2022 16:39:26 GMT

Re: dividends and interest for deceased

taxcurious2 — Thu, 17 Feb 2022 16:43:44 GMT

i saw that box, but i didn't realize that applies to the situation i'm in

Re: dividends and interest for deceased

Anonymous_ — Thu, 17 Feb 2022 16:45:47 GMT

Right, because it is counterintuitive.

Your mother is treated as having received the interest (the $165) that belongs to the estate as nominee for the estate.

Re: dividends and interest for deceased

taxcurious2 — Thu, 17 Feb 2022 16:50:53 GMT

you know, now that you say this, it makes perfect sense to me now

thank you

Re: dividends and interest for deceased

taxcurious2 — Thu, 17 Feb 2022 17:27:39 GMT

I have a followup question. It seems to me that upon typing the adjustment, turbo tax automatically prorates the qualified dividend on 1040 line 3a. It's somewhat mysterious in that the calculation seems invisible, but i tried a few numbers and i'm pretty sure it is prorating. I'm not sure why I can't just put in the true amount of the qualified dividends which is different from the prorated number.

Re: dividends and interest for deceased

Anonymous_ — Thu, 17 Feb 2022 17:39:07 GMT

Probably hard coded to do that, but you would have to resort to something like Forms Mode (not supported by online versions) to override it.

Re: dividends and interest for deceased

taxcurious2 — Thu, 17 Feb 2022 18:00:22 GMT

not even forms mode on the mac overrides it, really hardcoded -- guess nothing one can do

Re: dividends and interest for deceased

taxcurious2 — Thu, 17 Feb 2022 20:02:28 GMT

The only thing that seems to work is to change the qualified dividends number on the 1099B form until the right amount is shown on the 1040. I'm hoping i can add a note of explanation.