1099-div for TOD decedent doesn't separate dividend

[ccc]

Income received for decedent is included in the 1099-div form for the TOD account of the decedent, and not paid to estate and not paid to beneficiaries directly. The estate is small enough that it does not require a form 706 or to file a return. The only reason to file such a return would be to create the schedule k1-s for the distribution of income to the beneficiaries, but since it was TOD, the estate never held that income. So, the income on the decedent's final return will only include dividend and capital gain distributions paid into the account of the decedent before death for the year of death, while the beneficiaries will claim the remaining div and cap gain distribution income paid to decedent after death on their own tax returns. I have an explanation of this on the 1099-div form turbotax creates, but clicking on the numbers for box 1a, 1b, and 2a, and in the explanation dialog box (terrible usability by the way since it does not permit cutting and pasting of a paragraph with line breaks) I include the original number in the 1099 on one line and then a negative number on the next line, that negative number being the amount that the beneficiaries are claiming on their tax returns. I just need to know how Turbotax includes this explanation with the filed return, since the 1099-div is not included in the filing. Thank you so much.

[tagteam]

That should show up as a "Nominee distribution".

[ccc]

I believe that would be if you were filing estate taxes from the estate. What about when you are filing the decedent's final return. The decedent does not make nominee distributions. And the estate does not have to file  a return since the estate never received the income as the account was TOD.

My question is this: Even if you call it "nominee distributions" how in the decedent's final return does Turbotax account for that or permit explanation of that on  the return?

[tagteam]

See the screenshots below.

[tagteam]

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@ccc wrote:

The decedent does not make nominee distributions. 

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The decedent received the (post mortem) dividends as nominee for the estate.

[ccc]

Thank you for those screen shots. The problem with that (as far as TT explains it in the examples is that it only permits you to put a fixed amount on all types of income---dividends, cap gains, and qual dividends...

It does not allow you to say adjust 1a by $200, 1b by $100 and cap gains by $300 and foreign tax by $10. Or does it? I did not see that that was the case. Is it?How can that adjustment be made?

[tagteam]

Yes, you are correct in that regard. 

I believe any adjustment such as the one you set forth would have to be made using Forms Mode (not available in the online products).

[ccc]

Thank you for that comment. That brings be back to my question. Not sure how it works in "forms mode" as TT seems to disallow lots of stuff. As I mentioned from the start if this thread, I used the 1099-div form in "forms mode" and selected say box 1a, and in the details I was able to enter the original number with a subtracted number for the nominees. And my question was this: TT prints in "RED: at the top of that 1099-DVI, do not file. So, how does TT include the explanation with the submitted return? Are you saying this explanation should go directly onto the Schedule B? and Schedule D? Does TT permit editing those entries for explanations?

[ccc]

oh and sorry for misspellings...I meant 1099-DIV in the above..

[tagteam]

Yes, because you retain the 1099-DIV for your records (the IRS already has a copy).

[tagteam]

As shown in the screenshot, the distribution appears on Schedule B. If you want more granularity, then you will most likely have to do overrides in Forms Mode. 

[ccc]

@ChampChiran Thank you but if you go to Schedule B form in TT, there is not way to override or enter a "nominee distribution" such as the one you show on the screenshot. I believe this must be a bug in turbotax if it does not allow someone to report different adjustments for dividends, qualified dividends, capital gains, foreign tax, and all the entries in a typical 1099 DIV. Is there a way to report that bug? I paid a lot of turbotax home and business and I would expect at least this ability to make these individual and not global adjustments on the amounts on a 1099-div. Do I have any hope for using Turbotax to file these taxes? Thank you. 

[ccc]

@tagteam a related question is this: if TT does not permit me to modify a schedule B with nominee payments using an override, and if TT does not permit me to apply different adjustments to the individual 1099-div entries (or does it?--I'm still asking is this a bug..it seems so, and how to report that?), then is it possible to create a separate 1099-div form for each of the boxes 1a, 1b, etc and make adjustments to the individual boxes that way? The only "issue" there would be that I would have to enter only box 1b, 2a, etc entries into the box 1a or box 2, etc..all the so that all the numbers add up to the original 1099-div but I create these separate for separate adjustments. This seems like way too much work for a customer paying so much for this product. Any chance Turbtoax can fix this problem? thank you.

[ccc]

@tagteam Maybe this is the temporary solution. Create two 1099-divs for the financial institution. Neither matches the original one. One matches what the decedent pays, and one matches what goes to the nominee (100 percent). I think that will work but still think TurboTax should fix this bug so that it can be done easily and correctly. And I still  do not believe that TT permits 100 percent rather than an adjustment dollar amount, so that too will fail. I think I will have to go with creating a 1099-div for every entry of the form then. Turbtax if you are watching this thread, please address this and fix the bug.

[tagteam]

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@ccc wrote:

.....there is not way to override or enter a "nominee distribution" such as the one you show on the screenshot.

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You can enter a nominee distribution in Step-by-Step (the Interview) for dividend distributions.