A distribution type that ensures that each individual in a joint account pays the appropriate tax on interest accrued on funds saved in a joint account owned by two people since the interest accrued on an income is accounted to only one of the party. It can be made if the other owner is not a spouse; one of the joint account owners files a 1099-NIT form with the IRS (it reports the other person's share of the interest accrued) together with form 1096. This enables the person who has filed to pay tax only on their share of the interest.
Related information about nominee distribution:
- Nominee Distribution Definition | Investopedia
A taxpayer may choose to make a nominee distribution if s/he jointly owns an account with someone who is not his/her spouse and the financial institution where ...
- What is nominee distribution? definition and meaning
Definition of nominee distribution: A distribution type that ensures that each individual in a joint account pays the appropriate tax on interest accrued on funds ...
- Nominee Distribution: Definition from Answers.com
Nominee Distribution Interest income reported on IRS Form 1099-INT that a taxpayer designates as being the interest income of a different individual.
- Nominee Interest
... of interest you reported to the other owners and label it "nominee distribution." Then show the result (total interest minus nominee distribution) on Line 2.
- 2012 Form 1040A or 1040 (Schedule B) - Internal Revenue Service
of all interest listed on line 1. Below this subtotal, enter. "Nominee Distribution" and show the total interest you received as a nominee. Subtract this amount from ...
- Nominee
Nov 16, 2011 ... Below the subtotal, enter "Nominee Distribution" and show the interest (dividends ) you received as a nominee. Subtract this amount from the ...
- How To Report Interest Income
Then, below a subtotal of all interest income listed, write "Nominee Distribution" and the amount that actually belongs to someone else. Subtract that amount ...
- Form 1099 Information Returns - Rural Tax
Issue Form 1099-MISC with amount of the nominee distribution in Box 7. Crop Insurance. Report total amount on Schedule F, Line 8a and net amount on Line ...