How to report split dividend on Joint account for the spouse whose SSN is not shown on the brokerage report

[redjacket37]

My husband (primary) and I (spouse) want to split the dividend and interest 50/50 on our married filing separate NJ return.  I am listed as JTen and only his SSN is shown on the consolidated tax report.  Searched answers provided details for the primary person on how to report his total amount then adjust half as nominee.  However, no detail was provided for the spouse on how she would enter the other half of the dividend into her return using Turbotax.

Questions:

1)  Does the spouse use the exact same method as the primary? Another word, she report the total and adjust half as she is a nominee.

2)  Can the spouse use the same 1099-Div from the brokerage and just edit the content for her split amount?

3)  Where would the spouse get the 1099-Div to fill in her share of the split dividend? Are there screens in Turbotax to support this?

Please provide steps by steps details for the spouse's married filing separate return regarding dividend reporting on Turbotax.  Thank you in advance!  Jennifer

[ColeenD3]

1)  Does the spouse use the exact same method as the primary? Another word, she report the total and adjust half as she is a nominee.

Yes, but the primary has to issue a 1099 to the spouse.

Please see this answer from @Tom Young and see the link for a thorough discussion.

The IRS has instructions on what to do when you receive a 1099-B as a nominee for someone else:

You put a code of "N" in column (f) of Form 8949 and then

"Report the transaction on Form 8949 as you would if you were the actual owner, but also enter any resulting gain as a negative adjustment (in parentheses) in column (g) or any resulting loss as a positive adjustment in column (g). As a result of this adjustment, the amount in column (h) should be zero."

1099-B

For instructions on how to create a nominee form, please see this answer from our knowledgeable tax expert @DianeW777. Although it is for a 1099-S, the idea is still the same.

Nominee

[huili2]

I have similar question. IRS publication is not clear. In their Nominee/middleman return description, "...A spouse is not required to file a nominee return to show amounts owned by the other spouse. ", does one spouse need to file the form1096 and 1099 with IRS if married file separately? 

[JamesG1]

IRS 1096 Instructions states:

A spouse is not required to file a nominee return to show amounts owned by the other spouse.

If the 1099-DIV would report the gross amount of the 1099-DIV and adjust for the other partner.  A 1096 may be helpful but is not required.  The adjustment / distribution should follow the laws of the state which govern.

See this help.

For married filing separately, between the two tax returns the two partners should report the total dividends reported on the IRS Form 1099-DIV.

Spouse 1    Spouse 2   =  Box 1a

$300            $300         =   $600

In TurboTax Online:

• Report the correct amount in box 1a. 
• At the screen Tell us if any of these uncommon situations apply to you, select I need to adjust these dividends.
• At the screen Tell us about your dividend adjustment, enter the adjustment amount and select Other adjustment. 

View the 2021 Federal 1040 tax return line 3a and 3b entries at Tax Tools / Tools / View Tax Summary / Preview my 1040.