Schedule B

Are you the nominee or do you need to adjust the interest to give to the nominee?

Here's how to split the 1099Int for Nominee Interest.  Enter a 1099-Int under

Federal Taxes tab

Wages & Income

Interest and Dividends

Interest on 1099-INT - Click the Start or Update button

Whoever's ssn is on the 1099 enters the whole amount on their return.  Then after you enter it, on the next page it will ask

Tell us if any of these uncommon situations Apply and pick the first one, We need to adjust the taxable amount.

Then on the next page fill in the amount as a POSITIVE number and pick the first reason "I received all or part of this interest for someone else".

Then on the other person's return you enter it as a 1099Int and put the amount in box 1.

The concern I have is on the Schedule B I would like to add the name of the nominee (person who should be responsible for interest) But I cannot add anything to the schedule B. Turbo Tax has the Schedule B locked. That further concerns me since the IRS might think I am trying to avoid the taxes on the interest.

You would have to give the nominee a 1099 INT made out to them.  

You can prepare 1099Int & 1099Div online in Quick Employer Forms. You have to use the Online Premium version or the Desktop Home & Business program or Turbo Tax Business program to have access to the QEF. 

Or fill out the form from the IRS.

https://www.irs.gov/pub/irs-pdf/f1099int.pdf 

And you will need a 1096 Transmittal

https://www.irs.gov/pub/irs-pdf/f1096.pdf 

Quick Employer Forms
https://quickemployerforms.intuit.com/home

How to prepare 1099 & W2
https://ttlc.intuit.com/community/forms/help/how-do-i-create-w-2-and-1099-forms-in-turbotax/00/25869