Nominee Dividends and Capital Gains Distributions reported on 1099-DIV

[DSMC_tax]

I searched this forum and found that most of the discussions for this topic were very old so I started a new thread.

What is the best method to split dividends and capital gains reported under a joint account owned by a husband and wife but reported under wife's social security number?

I know how to handle the wife's return because you just input the 1099-DIV and put into that form what amount belongs to someone else. That then appears on the Schedule B as a nominee distribution. Same for Capital Gains Distribution in box 2a. The proper amount goes onto the Schedule D on line 13. The proper statements gets generated.

My problem is how to report on the husband's return. Do I create a dummy 1099-div, use the wife's social security number as the payer TIN and then put the amounts that will go onto the husband's return? I find if I put in an identical 1099-DIV with all the same numbers as original and then put what belongs to the wife that it also shows up as nominee distribution and this might be incorrect because the husband didn't really get a 1099-DIV.

Trying to avoid a notice. How is this usually handled with success? Schedule B says no 1099-DIV needs to be issued for spouse. But then no instructions on how to handle. (At least none I can find.)

Thanks.

[Lion]

You can put the husband's portion of dividends and capital gain distributions directly on husband's Schedule B. If you want to be more specific in the description than just Schwab, for instance, you could say Schwab via spouse XXX-XX-XXXX or something like that. You are talking about two MFS returns, right? You don't have to worry about the IRS trying to match to the husband, in your case, if the 1099-DIV was not in his name. You just have to enter the full amount on the wife's return, if the 1099-DIV was in her name, so it matches what the IRS computer is looking for and then subtract out her husband's portion, as you said. Just make sure it's really a joint account if it's reported in only the wife's SSN.

[DSMC_tax]

I played around with the dummy 1099-div. I didn't put in the Payer EIN and said the payer was Brokerage Name via spouse XXX-XX-XXXX like you suggested and it worked like a charm for the Schedule B. I think I would rather put the Cap Gains on the Schedule D, line 13. The dummy DIV handled that very well also.

I always thought the 1099-DIV had to have payer EIN and everything to be e-filed but I think it will go through. The alerts didn't flag anything as being wrong.

I guess there are cases when no 1099-INT or 1099-DIV is issued so this allows the income to be reported.

I learn something new every day.

Thanks for responding.

[Burke]

I always thought the 1099-DIV had to have payer EIN and everything to be e-filed but I think it will go through. The alerts didn't flag anything as being wrong.
I guess there are cases when no 1099-INT or 1099-DIV is issued so this allows the income to be reported. I learn something new every day.

The EIN is not required for DIV and INT input into the return. It will e-file just fine.

[DSMC_tax]

Thank you. It did e-file without EIN.