Another Tax Self-Prep Question: Two 1099s for One Account

[Amethyst]

I spent the first quarter-plus of 2022 doing estate-related things, including getting some smaller stock accounts, that were in my late husband's name alone, into my name.

Owing to the delay (I guess), I received two 1099s for each account: one in late DH's name, one in mine. The 1099 in my name has the correct amount of dividends for 2022.

Can I simply ignore the other 1099s, that are in DH's name? I believe they were sent to the IRS - do I need to account for them in some way?

Thanks,

Amethyst

 

[jebmke]

Is the one in your name for the full year -- does it reconcile with the full year financial statements for the account?

 

[Amethyst]

Yes, it is the true year's amount. The ones in DH's name have a partial amount.

Is the one in your name for the full year -- does it reconcile with the full year financial statements for the account?

 

[pb4uski]

I would include both. Did your DH die in 2022 or in 2021? IOW, is your 2022 a joint return or individual? Sounds like it is an individual return from what you wrote.

I'm not sure if it matters though. Even if your DH died in 2021 and 2021 was a joint return and 2022 is an individual return, the fact is that you effectively received the dividends in that 1099 and they are income to you even if the payor reported the dividends under two SSNs.

Depending on your income level the tax on that additional dividend income might be $0 anyway... or 15% in most cases if it isn't $0.

 

[jebmke]

If both 1099s are for 2022, I'd check the fine print on the one issued with your SSN to see if it isn't a "corrected" form.

 

[pb4uski]

^^^ I think that she said that the sum of the two 1099s are equal to the total dividends received according to her investment account statement.

 

[jebmke]

^^^ I think that she said that the sum of the two 1099s are equal to the total dividends received according to her investment account statement.

That isn't what she said but I admit it isn't clear. She answered "yes" to my question if the one that was in her name was for the full year and agreed with the statement.

The 1099s always should be reconciled to financial statements to ensure completeness and accuracy; same for other tax docs like W2s. In business it is a job requirement for financial people who deal with these things to produce these recons and I have fired controllers who didn't. A lot of individuals take shortcuts and assume that the tax documents are complete and correct -- not a good assumption.

 

[Amethyst]

I'm afraid I don't understand. Are you saying I should declare more income than I actually received in 2022? That is what would happen if I added the amounts on the two 1099s. DH died in late 2021; due to Florida law, these few accounts in his name had to go through probate, which took several months.

I guess my question is really, "Should I, and if so how would I, indicate somewhere on my tax return that although I received two 1099s for 2022, only one has the correct amount"?

I would include both. Did your DH die in 2022 or in 2021? IOW, is your 2022 a joint return or individual? Sounds like it is an individual return from what you wrote.

I'm not sure if it matters though. Even if your DH died in 2021 and 2021 was a joint return and 2022 is an individual return, the fact is that you effectively received the dividends in that 1099 and they are income to you even if the payor reported the dividends under two SSNs.

Depending on your income level the tax on that additional dividend income might be $0 anyway... or 15% in most cases if it isn't $0.

 

[MarieIG]

Hi Amethyst,

Have you called the entity which issued the incorrect 1099 and asked them to correct it?

Not the same, but last year, I received a 1099 with incorrect information, and called up the entity that issued it (and after an argument) had them issue a corrected 1099.

It seems that the entity which did this to you should also reconcile the fact that they sent out two forms - one with incorrect information.

 

[pb4uski]

I'm afraid I don't understand. Are you saying I should declare more income than I actually received in 2022? That is what would happen if I added the amounts on the two 1099s. DH died in late 2021; due to Florida law, these few accounts in his name had to go through probate, which took several months.



I guess my question is really, "Should I, and if so how would I, indicate somewhere on my tax return that although I received two 1099s for 2022, only one has the correct amount"?

No, you should not declare more income than you actually received. Does either of the 1099s equal the amount of income that you actually received?

 

[Amethyst]

Marie, that's a very good idea. I think I'll do just that, although it might take a while, and I'm anxious to file and get my refund.

Hi Amethyst,

Have you called the entity which issued the incorrect 1099 and asked them to correct it?

Not the same, but last year, I received a 1099 with incorrect information, and called up the entity that issued it (and after an argument) had them issue a corrected 1099.

It seems that the entity which did this to you should also reconcile the fact that they sent out two forms - one with incorrect information.

 

[Amethyst]

Yes - the one in my name reflects the actual income received in 2022.

No, you should not declare more income than you actually received. Does either of the 1099s equal the amount of income that you actually received?

 

[cathy63]

If the broker/fund made duplicate reports of income to two different SSNs (and it's the SSN that really matters, not so much the name), then they made an error and should issue corrected 1099s.

If they don't issue corrected 1099s in a timely fashion, then you should only report the income on your return that is associated with your own SSN. Since you'll be filing as Single, you shouldn't report income for other people's SSNs on your return.

 

[MarieIG]

Marie, that's a very good idea. I think I'll do just that, although it might take a while, and I'm anxious to file and get my refund.

I understand that. I was breathing fire when it happened to me.

 

[pb4uski]

Yes - the one in my name reflects the actual income received in 2022.

Then I would ignore the other one in your DH's name and SSN. Or perhaps call the issuer and confirm that it was issued in error.

 

[Amethyst]

Thanks, everybody.

 

[kgtest]

Amethyst, I am sorry for your loss.