How do I adjust nominee dividends?

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NOMINEE DIVIDENDS - How do I figure the adjusted amount for ordinary dividends of $143 qualified dividends of $138 and capital gain distributions of $942 that I received in my name with my daughter as the nominee?

TurboTax Basic Windows

Answer

After entering the full amount on your return, follow these steps:

After you click Continue when you have finished entering the information from your Form 1099-DIV, the next screen is titled “Tell us if any of these uncommon situation apply to you”
The second choice on this screen is “I need to adjust these dividends”
Check this box and click Continue
Then you will see a screen titled “Tell us about your dividend adjustment”
Enter the amount as a positive number and the reason for the adjustment. This will make the proper entry on your Schedule B.

If all of the dividends belong to your daughter, you would enter each of the $143, $138 and $942 as mentioned in your question.

Please feel free to post any additional details or questions in the comment section.

Anonymous

Answer

After entering the full amount on your return, follow these steps:

After you click Continue when you have finished entering the information from your Form 1099-DIV, the next screen is titled “Tell us if any of these uncommon situation apply to you”
The second choice on this screen is “I need to adjust these dividends”
Check this box and click Continue
Then you will see a screen titled “Tell us about your dividend adjustment”
Enter the amount as a positive number and the reason for the adjustment. This will make the proper entry on your Schedule B.

If all of the dividends belong to your daughter, you would enter each of the $143, $138 and $942 as mentioned in your question.

Please feel free to post any additional details or questions in the comment section.

garys_lucyl

Level 2

I am trying to do the same adjustments for a decedents tax return. The adjustment only asks for one number and it is applied to ordinary dividends. However, the entire amount I entered is not being used as the nominee distribution amount. A portion of it has been applied to the "capital gains distribution" on the 1099-DIV and I cannot find any way to undo that calculation. Why are part of the dividends being applied as a nominee distribution of capital gains? In my case, all the capital gains distributions were received prior to death so should be on the decedents tax return.