How to enter reason for nominee distribution on a 1099-Div

[mike2727]

For a 1099-Div, I need to adjust the dividend for a nominee distribution. 

I make the selections shown in the screenshots below.

I can enter the adjustment amount but I also need to enter the adjustment reason e.g. "NOMINEE DISTRIBUTION TO CO-OWNER - VICTOR XXXXXX (SSN-XXX-XX-XXXX)"

How do I enter the adjustment reason so that it shows up on Schedule B?

[DianeW777]

It depends. If you are using TurboTax Desktop you can select Forms and enter the nominee description on the Schedule B directly. If you are using TurboTax Online, then you would keep the return in your file and provide the information on request if that occurs.

You also do have the option of physically using the nominee process below.

Nominee Returns.  This is how the IRS knows what you are doing.

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 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.

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 here: 

• Form 1096
• Form 1099-DIV

[mike2727]

Thanks for your reply! Now I see that I can enter the reason text in the SmartSheet on the Schedule B form - I missed that before.  Thanks!