Fidelity used my mother's social security number for all of 2024 earnings, despite her having died on Oct 30. They did not use her new decedent account. What do I do?

[green2ski]

Does Fidelity have to reallocate the assets and back date the proper forms to the day of death, or what? The 1040 does have the date of death on it!

[DianeW777]

It's not likely they will correct or reissue the 1099s. You can report the income earned up to the date of death on your mother's return and then nominee the amount that belongs to your are the estate.

Use her statements to calculate the amount earned before death or contact Fidelity for the information.  Then report the balance on your return or the estate if more beneficiaries.

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. (Provided on the Form 1096)

• On each new Form 1099, list as the payer the person on the original form and the other owner, as the recipient. On Form 1096, list the person on the original form as the nominee filer, not the original payer (financial institution).  The nominee is responsible for filing the subsequent Forms 1099 to show the amount allocable to each owner.

The forms filed with the IRS should be the red copy so if you don't have a color printer, go to the IRS website and order the forms you need: 

• Form 1096 
• Form 1099-B
• Form 1099-INT
• Form 1099-DIV

We are sorry for your loss

[green2ski]

Thanks..Can TT assist me with this problem via the business product (or the personal tax product)?  I haven't done this before and don't want the return to be rejected or audited...

[green2ski]

I appreciate your answer.  Because of this tax reporting problem (as well as a significant account step-up error on Fidelity's part), I am not confident I can use Turbotax to correctly sort out the issues.  Correct me if I'm wrong, but I feel that an accountant with estate and trust experience would take the time and have the knowledge to correctly complete the returns and help with the reporting of distributions to the beneficiaries.  

[IsabellaG]

Yes, if you would rather pursue this situation with a local tax professional, that is certainly a valid choice.