We received a 2016 1099-DIV for a joint husband/wife acct where husband had died in late 2015. All stocks were transferred to wife's single acct in 2015, however 2 stocks had dividend payouts in Jan 2016 to the joint acct. The 2016 1099-DIV has deceased husband's SS# listed. Those dividend payouts were transferred to the wife's single acct in 2016 (approx. $230 total).
Include those dividends on the return of the living spouse even if the social security number belongs to the deceased spouse.
- You could use the "nominee" procedure if you choose to transfer them to the social security number of the living spouse if you are concerned.
- You can wait and explain should the IRS ever question it down the road.
The instructions are here for convenience, either option is correct as long as the income is included.
Nominee returns. Generally, if you receive a Form 1099 for amounts that actually belong to another person or entity, you are considered a nominee recipient. You must file a Form 1099 with the IRS (the same type of Form 1099 you received). You must also furnish a Form 1099 to each of the other owners. File the new Form 1099 with Form 1096 (this is a transmittal for the 1099) by mailing to the Internal Revenue Service Center for your area.
- On each new Form 1099, list yourself as the payer and the other owner, as the recipient. On Form 1096, list yourself as the nominee filer, not the original payer. The nominee is responsible for filing the subsequent Forms 1099 to show the amount allocable to each owner.