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Level 3
February 15, 2022
Question

1099-div for TOD decedent doesn't separate dividend

  • February 15, 2022
  • 1 reply
  • 0 views
Income received for decedent is included in the 1099-div form for the TOD account of the decedent, and not paid to estate and not paid to beneficiaries directly. The estate is small enough that it does not require a form 706 or to file a return. The only reason to file such a return would be to create the schedule k1-s for the distribution of income to the beneficiaries, but since it was TOD, the estate never held that income. So, the income on the decedent's final return will only include dividend and capital gain distributions paid into the account of the decedent before death for the year of death, while the beneficiaries will claim the remaining div and cap gain distribution income paid to decedent after death on their own tax returns. I have an explanation of this on the 1099-div form turbotax creates, but clicking on the numbers for box 1a, 1b, and 2a, and in the explanation dialog box (terrible usability by the way since it does not permit cutting and pasting of a paragraph with line breaks) I include the original number in the 1099 on one line and then a negative number on the next line, that negative number being the amount that the beneficiaries are claiming on their tax returns. I just need to know how Turbotax includes this explanation with the filed return, since the 1099-div is not included in the filing. Thank you so much.

1 reply

Level 15
February 15, 2022

That should show up as a "Nominee distribution".

cccAuthor
Level 3
February 15, 2022

I believe that would be if you were filing estate taxes from the estate. What about when you are filing the decedent's final return. The decedent does not make nominee distributions. And the estate does not have to file  a return since the estate never received the income as the account was TOD.

 

My question is this: Even if you call it "nominee distributions" how in the decedent's final return does Turbotax account for that or permit explanation of that on  the return?

cccAuthor
Level 3
February 16, 2022

As shown in the screenshot, the distribution appears on Schedule B. If you want more granularity, then you will most likely have to do overrides in Forms Mode. 


@ChampChiran Thank you but if you go to Schedule B form in TT, there is not way to override or enter a "nominee distribution" such as the one you show on the screenshot. I believe this must be a bug in turbotax if it does not allow someone to report different adjustments for dividends, qualified dividends, capital gains, foreign tax, and all the entries in a typical 1099 DIV. Is there a way to report that bug? I paid a lot of turbotax home and business and I would expect at least this ability to make these individual and not global adjustments on the amounts on a 1099-div. Do I have any hope for using Turbotax to file these taxes? Thank you.