1040 and 1041 withholding

[cher52]

I am filing 1040  and 1041 for the deceased.,,,.I am making an adjustment for the dividends to be able to split them up between the 2 forms (nominee)....should I do the same for the corresponding withholding that matches each dividend....there is not an adjustment for withholding in the step by step screen....

[AmyC]

Yes, if you are filling out the forms include the tax withheld and allocate it.

 Publication 559, Survivors, Executors, and Administrators states:

How to report.

If you are preparing the decedent's final return and you have received a Form 1099-INT for the decedent that includes amounts belonging to the decedent and to another recipient (the decedent's estate or another beneficiary), report the total interest shown on Form 1099-INT on Schedule B (Form 1040), Interest and Ordinary Dividends. Next, enter a subtotal of the interest shown on Forms 1099, and the interest reportable from other sources for which you didn't receive Forms 1099. Then, show any interest (including any interest you receive as a nominee) belonging to another recipient separately and subtract it from the subtotal. Identify the amount of this adjustment as “Nominee Distribution” or other appropriate designation.

Report dividend income for which you received a Form 1099-DIV on the appropriate schedule using the same procedure.

Note. If the decedent received amounts as a nominee, you must give the actual owner a Form 1099, unless the owner is the decedent's spouse. See the General Instructions for Certain Information Returns for more information on filing Forms 1099.

General Instructions for Certain Information Returns. Under who must file, it is to another person. The deceased and the estate are different entities but both are associated with the same deceased person It also warns that a k-1 should not include income already reported on a 1099.

[dmertz]

If the estate will not have any tax liability because it is distributing all taxable income to estate beneficiaries, it would generally be a mistake to allocate any of the tax withholding to the estate because the estate cannot pass through the tax withholding to estate beneficiaries on Schedules K-1.