Discussion:Joint Savings Account- Who reports the interest generated
From TaxAlmanac, A Free Online Resource
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.
From TaxAlmanac
Discussion Forum Index --> Tax Questions --> Joint Savings Account- Who reports the interest generated
| 20 July 2007 | |
| Hello,
Who files the interest generated from a joint savings account? Is it the person whose name is listed first on the account? Is that how the bank determines who should be given the 1099 Form? Thanks! | |
| 20 July 2007 | |
| The person whose Social Security number is on the account is issued a 1099-INT for the interest earned on the account. | |
| 20 July 2007 | |
| The person(s) who own the money. If community property went into the account, the interest earned is community property income and divisable between both spouses. This would be true even if only one spouse put the money into the account and even if only one spouse's SSN is on the account. | |
| 20 July 2007 | |
| I am sorry, but I disagree with Jdugancpa: Wisconsin is a Community Property state, and the Form 1099-INT is only issued to the SS listed on the account.
The question from Aeren was "Who files the interest generated from a joint savings account? The owner of the SS number on the account. Is it the person whose name is listed first on the account? NO Is that how the bank determines who should be given the 1099 Form? NO It is determined by the SS number on the account. | |
| 20 July 2007 | |
| Yes, but 1040man, who does the interest income belong to? It should be nominee'd off the tax return of the person it doesn't belong to, even though it has technically been reported first on his/her return. | |
| 20 July 2007 | |
| 1040man, better look up Pub 555, Community Property, page 4: "Dividends, interest, and rent. Dividends, interest and rents from community property are community property income and must be evenly split." As Kevin said, the fact that it is reported with one spouse's SSN does not mean that spouse picks up 100%. It should be listed 100% on Sch B and then reduced by the 50% belonging to the other as a nominee adjustment. | |
| 20 July 2007 | |
| And if dad puts in all the money, but daughter's name and SSN are listed first, the income does not really belong to daughter. Therefore, even though the 1099 comes in her name, it should be subtracted off of her Sch B and placed on dad's return. | |
To join in on this discussion, you must first
log in.
