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How do I report nominee interest income on Schedule B, Form 1041?

jimsmaron
Level 1
 
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6 Replies 6
dascpa
Level 8

Unlike the 1040 there is no "built-in" nominee button to hit.  After all lines of the Schedule B you add another line called "Nominee Distribution" and put a negative number on the line.  Some people will put the SSN or EIN or the tax return where the nominee income should be reported on.

wfp
Level 2

Pro Series is not letting me put a negative number on Schedule B.  Now what?

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dascpa
Level 8

The post you are referring back to was for a 1041.  You can put a negative number there.  for a 1040 double-click on the interest line to get to the Additional Information worksheet.  There under E: Adjustment Information  you can select the type of adjustment and the amount of adjustment. Nominee is choice "N".

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wfp
Level 2

First – thank you so kindly for the reply.  I followed your steps, but I must have done something wrong.  It is still not showing up on Schedule B.  Further guidance?

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dascpa
Level 8

Put in total interest as normal. Go into addl info and put in nominee info, but NOT as a negative number. Go back and look at Sch B actual form (not the worksheet). At the bottom it will show Subtotal and then the next line will be Nominee with a subtraction.  I just tested it and it works in the 2020 program.

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wfp
Level 2

Ok - Thanks. I realized my mistake. I was still creating a separate entry for all nominee income. Now I realize that I must go back and do an adjustment for each entry.

Thanks so much for your help.

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