cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Level 1

How to report nominee income

 
1 Best answer

Accepted Solutions
Level 3

How to report nominee income

Since the Form 1099-INT is reported under your social security number, then it should be included on your tax return.  You could then subtract the amount from your return by showing it was nominee interest.

To do so within TurboTax, use these steps to revisit the interest section of your tax return:

  • On the top row of the TurboTax online screen, click on Search (or for CD/downloaded TurboTax locate the search box in the upper right corner)
  • This opens a box where you can type in “1099-INT” (be sure to enter exactly as shown here) and click the magnifying glass (or for CD/downloaded TurboTax, click Find)

  • The search results will give you an option to “Jump to 1099-INT

  • Click on the blue “Jump to 1099-INT” link

 

This will bring you to a summary of interest forms already entered.  If you have already entered the interest in your return, click Edit beside the one with the nominee amount.  If you have not already entered the interest in your return, keep reading for steps to take after entering the information. Follow these steps:

 

  • After you click Continue when you have finished entering the information from your Form 1099-INT, 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 my taxable amount” 

  • Check this box and click Continue

  • Then you will see a screen titled “Report Interest adjustment

  • Enter the amount as a positive number and the reason for the adjustment.  This will make the proper entry on your Schedule B.

 

Also, take a look at the IRS Topic 403 – Interest Received for more details about the next step to take so that the actual owner of the interest is properly notified. 

To strictly follow the next steps, a 1099 should be issued to your grandson to report the interest, but it may not cause any issues if he simply reports the interest on his tax return without the actual form issued in his name.

Also see Filing Tax Form 1099-INT for more information.


2 Replies
Level 1

How to report nominee income

My grandson cashed in a savings bond that I bought for him.  The interest was reported to my SSN.  He will claim the interest on his return.  How should we report this?
Level 3

How to report nominee income

Since the Form 1099-INT is reported under your social security number, then it should be included on your tax return.  You could then subtract the amount from your return by showing it was nominee interest.

To do so within TurboTax, use these steps to revisit the interest section of your tax return:

  • On the top row of the TurboTax online screen, click on Search (or for CD/downloaded TurboTax locate the search box in the upper right corner)
  • This opens a box where you can type in “1099-INT” (be sure to enter exactly as shown here) and click the magnifying glass (or for CD/downloaded TurboTax, click Find)

  • The search results will give you an option to “Jump to 1099-INT

  • Click on the blue “Jump to 1099-INT” link

 

This will bring you to a summary of interest forms already entered.  If you have already entered the interest in your return, click Edit beside the one with the nominee amount.  If you have not already entered the interest in your return, keep reading for steps to take after entering the information. Follow these steps:

 

  • After you click Continue when you have finished entering the information from your Form 1099-INT, 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 my taxable amount” 

  • Check this box and click Continue

  • Then you will see a screen titled “Report Interest adjustment

  • Enter the amount as a positive number and the reason for the adjustment.  This will make the proper entry on your Schedule B.

 

Also, take a look at the IRS Topic 403 – Interest Received for more details about the next step to take so that the actual owner of the interest is properly notified. 

To strictly follow the next steps, a 1099 should be issued to your grandson to report the interest, but it may not cause any issues if he simply reports the interest on his tax return without the actual form issued in his name.

Also see Filing Tax Form 1099-INT for more information.