1099 INT for a Jointly owned CD

[6143140189]

My 80 year old brother sold his house (principal place of residence for more than 40 years) and moved to an assisted living facility.  At his direction I put the proceeds in a Jointly owned CD.  Although the money is clearly his I was listed a the principle owner.  The bank sent me the 1099 INT.  I see advice that implies I can send him and the IRS a 1099 INT for his share (which is 100%) and file a form to "correct" the 1099 INT that I received. 

Is this correct and how, exactly, do generate the 1099 INT, send it to my brother and the IRS, and "correct" the 1099 I have received.

thanks

[Opus 17]

I'm not sure what you are seeing as advice, you can't issue a 1099-INT because you aren't a bank.

Your brother's tax return simply reports all the interest as "interest not on a 1099-INT".  There is a way to do this in Turbotax.

Your situation is a bit more complicated.  Before e-filing, the IRS would have said to not include the interest on your return, and  to attach a copy of the 1099 and a letter of explanation when you mail your return.  The letter would include your explanation, and give your brother's name and address, so the IRS could verify he reported the interest.  With e-filing, that is less easy to do.  Turbotax does not allow for the attachment of statements or documents.  Tax professionals can do this, so one option is to see a tax pro and have them file for you and attach the documents suggested.  If you want to use Turbotax and e-file, there are two options.

1. Leave the 1099-INT off your return.  Be prepared for the IRS to send a letter (this is automated) about the missing income, you would reply with your explanation.

2. Add the 1099-INT, then also add an item of "other" or miscellaneous income in a negative amount to offset the income, and for the reason, write something like "Interest reported in my name but belonging to my brother Robert Smith".  This gets the 1099 on the return so it satisfies the computer matching, but the IRS may still send a letter asking for an explanation of the offset. 

[VolvoGirl]

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 their amount as a POSITIVE number and pick the first reason "I received all or part of this for someone else".

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

I don't think you need to give him a 1099INT from you but if you want to fill one out....

You can only 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.