TurboTax input question

[Texas Proud]

OK, trying to finish up my mother's final income tax return and am using TurboTax as they also have a 1041 program.


So , calculated the 1099 income that goes to the 1040 and the 1041. I input the full amount of the 1099s to the 1040 planning on adding a line that would say "Allocated to 1041 - tax ID number"... but I cannot input a negative number.


How did others handle this allocation?




It was easy for the 1041 as I just put down "Allocated from 1040 -SS#"...

 

[cathy63]

Here's Pub 559 https://www.irs.gov/publications/p559#en_US_2019_publink1000201749, which says to ask the payer to separate the 1099 into one for your mother and one for her estate. If you can't do that, then report it as "Nominee Interest".

In TurboTax, you do this by entering the entire amount in Box 1, and then on the next screen checking the box that says "I need to adjust the taxable amount". Enter the adjustment (the amount you want to allocate to the 1041) as a positive number. Then select the radio button that says "I received all or part of this interest for someone else (I am nominee)". If it's a 1099-DIV, it works the same.

Pub 559 also says that you must give the nominee (the estate in this case) a 1099.