I got divorced mid-2022. I owned shares & received dividends for Q1 2022 but shares were split in 1/2 with Ex mid year. How do I treat Q1 dividends?

[greg2putt]

My tax statement for dividends included 100% for Q1 even though 1/2 of these shares were transferred to ex- in June.    I have the same question for my pension which she had 1/2 of via the checkbook transfer prior to official June divorce and separate payments sent to each marital partner.  

[Anonymous_]

I will page @Mike9241. Check back later.

[JosephS1]

You can split the income that was reported on the 1099-DIV by taking the portion that applies to your ex and listing the dividend income as "nominee" income assigned to another.  These are the steps you should follow for the assignment of the dividend income:

1. In TurboTax, go to "Wages & Income"
2. Scroll to "Investments and Savings"
3. Click "Edit/Add."  for the particular dividends to which this applies
4. The next screen will ask if any uncommon situations apply, checkmark "I need to adjust" and click "I need to adjust these dividends".
5. Place the amount of the dividends that applies to your ex in the adjustment amount line and click "you received all or part for someone else".
6. Click continue and the portion of the dividends that applies to your ex should be deducted from your income.

Unfortunately, the pension allocation is much more complicated.  There is no method to allocate pension income to another other than through negotiation for the extra tax you will have to pay for claiming the full amount listed on the 1099R.  The method of negotiation, either through direct contact or through the legal system is really up to you.

[greg2putt]

Very helpful clarification of the process for dividends.   Glad at least a portion of my financial dilemma is easily resolved.  

[jcmurphyjr]

How do I do the same for a 1099-B.  A joint account was split due to divorce and the 1099-B was  associated with my SSN., but I only received 1/2 the proceeds

[MarilynG1]

If you only received half the proceeds shown on a 1099-B, you need to issue a 1099-B to the other recipient.

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-B

@jcmurphyjr 

[jcmurphyjr]

Thanks for the reply!  But I am still a little confused.  Is the example below correct?  Do I still file the Original 1099-B or do I create a second for me with the same totals as my Ex?

Original 1099-B: Proceeds-10k; Cost Basis: 6k; Gain-4k

New 1099-B to Ex: Proceeds-5k; Cost Basis: 3k; Gain-2k

1096: Total Amount Reported: 5k

[DaveF1006]

You would file a 1099B and report 1/2 of the amounts. The remaining amounts you will issue a 1099B to your spouse reporting his 1/2. Report these in the manner prescribed by MarilynG1 in her previous port.