Nominee qualified dividends in ProSeries

[Gretel]

I am working on a final 1040 and estate tax return and have to nominee dividends and qualified dividends. The dividends are not a problem but the qualified dividends are reduced by the same amount, which is wrong. Only option I can think of is to overwrite line 9b on the 1040. Any other idea?

[kathyc2]

I am working on a final 1040 and estate tax return and have to nominee dividends and qualified dividends. The dividends are not a problem but the qualified dividends are reduced by the same amount, which is wrong. Only option I can think of is to overwrite line 9b on the 1040. Any other idea?

I'm not totally following that you are saying, but wondering if splitting between 2 lines on the Sch B worksheet would work?

[FEDUKE404]

Schedule B & nominee distributions

I am working on a final 1040 and estate tax return and have to nominee dividends and qualified dividends. The dividends are not a problem but the qualified dividends are reduced by the same amount, which is wrong. Only option I can think of is to overwrite line 9b on the 1040. Any other idea?

Why should the amount of the qualifying dividends not also be reduced ? ?

I assume TurboTax / Intuit / Proseries all operate similarly.

I don't follow your logic. The software should have a box that you check to denote the (potential) income as a nominee distribution **AND** it has a companion box where you enter the dollar amount of said nominee distribution. This may be all or part of the "whole" dividend amount separately entered from where the dividends / qualifying dividends are first entered.

When I randomly entered $500 as a nominee distribution amount for a theoretical $2k dividend (all qualifying), both lines 9a and 9b were reduced by $500, and of course there was automatically created a line entry/reduction on the Schedule B showing "Nominee Distribution" and a negative $500 amount. From all appearances, the software did its job.

Are you entering the dividend information directly on the Smart Worksheet (that can cause serious problems, such as with related foreign tax info!) or using the suggested "Double-click from payer" that takes you to a detailed worksheet for each stock ??

FWIW: I've learned, to include through the School of Hard Knocks, that you better have a doggone good reason to override a software-calculated number.

FE

[Dusty2004]

Boy do I agree with this one!

FWIW: I've learned, to include through the School of Hard Knocks, that you better have a doggone good reason to override a software-calculated number.

I almost NEVER (notice I said almost) override what the program has. I trace it back to the source (if I don't know the source) and make the change at the source if it is not correct.

Dusty

[TAXNJ]

FWIW: I've learned, to include through the School of Hard Knocks, that you better have a doggone good reason to override a software-calculated number.

I almost NEVER (notice I said almost) override what the program has. I trace it back to the source (if I don't know the source) and make the change at the source if it is not correct.

Dusty

This is easy. That's why a Professional software system has a "help" (how to) tab and a "tech support" team to address system "input" issues mentioned in this post.

[Gretel]

I agree with all of you and have not made myself clear. I tried to make the entries with separate lines but that did not provide the correct result.

Unfortunately, the amounts of dividend and qualified dividends do not correlate as a dollar amount with each other. I went through the detailed dividend statement and added up all dividends and qualified dividends after death to arrive at my number. Simple example below:

Total Div $1,000 - total Qual.Div. $600

Did after death - $300 - Qual.Div. after death $180

There are also non-tax distributions included but none after death

ProSeries reduces by a % qualified div and non tax distributions based on dividends. I believe I will need to call them to see if they have a better solution than overwrite.

Thanks,

[kathyc2]

I agree with all of you and have not made myself clear. I tried to make the entries with separate lines but that did not provide the correct result.

Unfortunately, the amounts of dividend and qualified dividends do not correlate as a dollar amount with each other. I went through the detailed dividend statement and added up all dividends and qualified dividends after death to arrive at my number. Simple example below:

Total Div $1,000 - total Qual.Div. $600

Did after death - $300 - Qual.Div. after death $180

There are also non-tax distributions included but none after death

ProSeries reduces by a % qualified div and non tax distributions based on dividends. I believe I will need to call them to see if they have a better solution than overwrite.

Thanks,

So, you want 700 on 9a and 420 on 9b? I just put it through on 2 lines, first 700 ordinary and 420 qualified. Then on separate line, 300 ordinary and 180 qualified. Double clicked on this line and indicated 300 as nominee.

[Gene V]

I agree with all of you and have not made myself clear. I tried to make the entries with separate lines but that did not provide the correct result.

Unfortunately, the amounts of dividend and qualified dividends do not correlate as a dollar amount with each other. I went through the detailed dividend statement and added up all dividends and qualified dividends after death to arrive at my number. Simple example below:

Total Div $1,000 - total Qual.Div. $600

Did after death - $300 - Qual.Div. after death $180

There are also non-tax distributions included but none after death

ProSeries reduces by a % qualified div and non tax distributions based on dividends. I believe I will need to call them to see if they have a better solution than overwrite.

Thanks,

Gretel--does the Total Div of $1,000 include the $300 ? If not, then when you enter number in tax program, you should enter Total dividend $1,300 and $300 in nominee section.
Gene

[Gretel]

So, you want 700 on 9a and 420 on 9b? I just put it through on 2 lines, first 700 ordinary and 420 qualified. Then on separate line, 300 ordinary and 180 qualified. Double clicked on this line and indicated 300 as nominee.

I had tried that before posting, get error message plus wrong result for qualifying dividends.

[Gretel]

Gretel--does the Total Div of $1,000 include the $300 ? If not, then when you enter number in tax program, you should enter Total dividend $1,300 and $300 in nominee section.
Gene

Yes, it does.