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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?

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!
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2 Replies
DianeW777
Employee Tax Expert

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?

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: 

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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?

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...

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