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03-09-2018 09:59 AM - edited 03-09-2018 10:00 AM
Good morning. After a divorce last year, I received joint bank interest via a 1099 form listing only my name. The H&R Block software indicates:
“Give a Form 1099-INT to the actual owner of the interest you received as a nominee.
You must file Forms 1096 and 1099-INT with the IRS.” A few questions:
After making the adjustment to the interest this is no place to indicate my ex-spouse info for the other 50% (as suggested via another post in this Community). Did I miss this?
Besides completing forms 1096 & 1099-INT, should I include an explanation to the IRS?
Will anyone even read it?
Can I still e-file or not if I want to include an explanation?
Also, when is the 1096/1099 forms due to the IRS? My search indicates 1/31/18 but that seems more for a business. I did not know about these forms until working on my 1040.
Thank you for your help.
Solved! Go to Solution.
03-16-2018 03:24 PM
No you did not miss anything about indicating the adjustment is for your ex-spouse.
As you have already suggested, you will have to file a 1099-INT and send it to the IRS and your ex-spouse. You will also have to fill out form 1096. Here is a link to the instructions for filling out a 1099-INT form, https://www.irs.gov/pub/irs-pdf/i1099int.pdf.
You do not need to have an explanation to the IRS, and you can still e-file your return (Generally, writing out an explanation to the IRS bars you from e-filing).
Filling out that 1099-INT form is your way of telling the IRS who the other interest income belongs to, that is why there is no need to fill out your ex-spouse’s information. That is also why there is no need to write out an explanation to the IRS.
Here is a link to the IRS publication 550, about investment income. https://www.irs.gov/pub/irs-pdf/p550.pdf. On page 19, in the middle of the page, the section that starts with “Nominee distributions” might be worth a read. Nothing in this section suggests anything about needing either an explanation, or including your ex-spouse’s information on your 1040.
As far as the due dates go, the 1099-INT was indeed due by 1/31/2018. The 1096 was due by 2/28/18. I recommend completing and furnishing these forms as soon as possible.
If you have any other questions I'll be glad to help.
Tax Research Specialist