Divorce finalized in 2023- How to handle 1099-DIV, 1099-INT and 1099-B for period prior to settlement?

[finance11]

I divorced (legally 'awarded') in 2023; the assets were all allocated as of a separation agreement in July 2023.  I have calculated our respective shares of interest, dividends and capital gains for all accounts, by account (and type).  All of the 1099s received have my social security number (even though they were joint accounts). 

TurboTax suggests that for 1099-DIV and 1099-INT income, I enter her portion as nominee (obviously we will need to share spreadsheets and the combined income should be 100% of the received) income.  Can someone confirm this is correct and there is no additional documentation required to be provided?

More confusing is the 1099-B gains.  I don't see where I can identify nominee income in my filing?  The best suggestions I have seen (on the TurboTax board) are to: 1) have her pay me the taxes due on her share and report 100% on my 1040 or 2) create a 1099-B for her, and send to the IRS reflecting her share of the gains.  In total, the capital gains (all short-term) are less than $10K.  

Thanks in advance! Surprisingly, there is very little written about filing taxes in the year of divorce.

[Vanessa A]

TurboTax suggests that for 1099-DIV and 1099-INT income, I enter her portion as nominee (obviously we will need to share spreadsheets and the combined income should be 100% of the received) income.  Can someone confirm this is correct and there is no additional documentation required to be provided?  Yes, this is the correct way to do this.

After you enter your dividends you will select I need to adjust these dividends then his continue

Next enter the amount you paid her or her share of the dividends.  hit continue. 

You will see the full amount on the summary screen, but then on your 1040, only the amount that belongs to you will be reported. 

You then need to issue her a 1099INT and 1099-DIV

You can use Intuit's Quick Employer Forms to file the nominee forms

For the 1099-B, it may be easier for you to pay the taxes and have her pay you back, so whichever option works best for you, you can choose to do.  However, you can issue her a 1099-B.  You would need to send this to the IRS with transmittal form 1096 by February 28th. 

(Edited 2/21/24 @ 4:16PM) @finance11 

[finance11]

Thanks for your response.  What do I do for stocks (1099-B)?

[finance11]

Also, do I issue one 1099-INT and 1099-DIV for all of her share of interest and dividends regardless of source (broker)?

[Vanessa A]

For the 1099-B, it may be easier for you to pay the taxes and have her pay you back, so whichever option works best for you, you can choose to do.  However, you can issue her a 1099-B.  You would need to send this to the IRS with transmittal form 1096 by February 28th. 

Yes, you would issue one 1099-INT and 1099-DIV for all of her share of interest regardless of the source.  This is because it is now your income and your responsibility.  So it is coming from you, you cannot issue the forms in the name of the original companies. 

[finance11]

Thanks again for your expert reply.  In TurboTax, when I go to create a 1099, it asks for a business name.  In this particular case, would I just use my name?

[finance11]

Also, in TurboTax, I see how to create 1099-INT and 1099-DIV forms; I do not see how to create a 1099-B (or 1096) form.  Where do I find that form? Thanks!

[AnnetteB6]

Form 1099-B is usually only issued by brokers or those involved in a barter exchange.  If you decide that you need to file a Form 1099-B to divide the transactions prior to your divorce settlement, you will need to go through the IRS e-file system.  The TurboTax Quick-Employer-Forms does not support Form 1099-B.

Use this link to learn more:

E-file information returns
 

@finance11