Where do I enter the pre-death and nominee (post-death) income from 1099-DIVs and 1099-Bs on Mom’s tax return?

[davidsson]

She had 4 investment accounts and 5 savings accounts, each with post-death income. The numbers aren’t big, but I want to make sure the returns are all accurate.

I have tax docs (1099-DIV/1099-B/8949) from 2 of the investment accounts and am still waiting on 2 more.

I  believe I correctly understand how to identify the nominee interest in Turbotax (TT) for the savings/interest earning accounts.  The process for this using TT for her 5 accounts seemed simple.

I know from entering the 1099-DIV information and nominee information that TT makes calculations projecting Qualified Dividend numbers that are incorrect for my situation.  I do not see any easy way to separate out nominee income numbers for the other income noted on the 1099-DIV.

I have entered information from the 1099-DIVs (2 so far) in TT.

Exactly how do I enter/differentiate accurate information about the nominee income on Mom's return (being redirected via 1099 to the estate)??

I will have income for FOUR different investment accounts to enter (and merge?) and see a big opportunity for mistakes to be made.

I have nominee information on Lines:

1a. Total Divs.,

1b. Qual. Divs.,

2a. Cap. Gains

5. Sec. 199A Divs.,

7. For. Tax Pd.,

12.Exempt-Int Divs.,  

Form 8949 with capital loss.

I had hoped there would be a simple screen to enter the nominee information (after checking the box that changes need to be made), but was disappointed.

I appreciate any help you can provide!!

[DianeW777 · Accepted solution]

I suggest entering the correct amounts for all categories on the 1099-DIVs then physically nominee the remainder of earnings to the estate or individual it belongs to after death.

Nominee Returns.

Generally, if you receive a Form 1099 for amounts that actually belong to another person or entity, you are considered a nominee recipient. You must file a Form 1099 with the IRS (the same type of Form 1099 you received).  You must also furnish a Form 1099 to each of the other owners. 

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-DIV
• Form 1099-B
• Form 1099-INT

I have included each of them, however you can file with the nominee action in TurboTax, if you like, for the documents that don't require alteration like the 1099-DIV.