Reporting income of a decedent

[blartboy]

I am the executor of my mom's estate; she died on 12/17/22. I received 1099-INT and 1099-DIV covering all of 2022. Most of the income belongs on her final return but a portion will go on Form 1041, which will be filed later. I will be filing a paper return, an IRS requirement due to a previous identity theft.

My question is about the final return, Form 1040: IRS Publication 559 for executors, page 7, in the paragraph called "How to Report," says to report the total interest or dividend on Schedule B of form 1040. That's fine. But then it says "Next, enter a subtotal of the interest shown on Forms 1099, and any interest reportable from other sources for which you didn't receive Forms 1099." WHERE do I report this? On a separate piece of paper?

The paragraph continues: "Then, show any interest...belonging to another recipient separately and subtract it from the subtotal. Identify the amount of this adjustment as a 'Nominee Distribution' or other appropriate designation." WHERE do I 'show' this amount, and 'identify' it with a designation?

In Turbotax, on the Form 1099 DIV/INT worksheets, there is a place to adjust a dividend (letter H below box 13), but no place to enter the subtotal described in the IRS publication or to 'identify' the adjustment by an 'appropriate designation.'

Any help appreciated.

Thank you.

[JamesG1 · Accepted solution]

You will report the full amount of the IRS form on your tax return and then generate a nominee distribution as a negative entry.

That way the IRS will see that the full amount of the income has been recognized on your tax return.

As an example, for interest income:

• Down the left side of the screen, click on Federal.
• Down the left side of the screen, click on Wages & Income.
• Scroll down to Investments and Savings.  Click Show more to the right.
• Click Start / Revisit to the right of Interest on 1099-INT.
• At the screen Your investments and savings, Click Add investments.
• At the screen Let's import your tax info, click Enter a different way.
• At the screen OK, let's start with one investment type, select interest.  Click Continue.
• At the screen How would you like to upload, select Type it in myself.
• Enter 1099-INT information.
• At the screen Do any of these uncommon situations apply to you, click on I need to adjust the interest reported.
• Click Continue.
• Enter the adjustment amount.
• Click on I received all or part of this interest for someone else (I am a nominee).  Click Continue.

View Schedule B Interest and Ordinary Dividends entries at Tax Tools / Print Center / Print, save or preview this year's return.

Part I will record the Nominee distribution amount.

@blartboy 

[blartboy]

Thank you so much. That solved it.

I could not find a similar procedure for splitting 1099-R income between the final return and the estate return. Under my mom's pension agreement, her estate was allowed to keep the pension payment for the month she died (December), even though it was paid after she died.

Should I just reduce the gross distribution (box 1) and taxable amount (box 2a) by the amount of that pension payment? It doesn't seem quite right to do it that way.

Thank you.