Change Filing Status on 2020 Returns Already Filed-How is Joint Income Divided?

[Davefeld]

To take advantage of the recent Stimulus Act change regarding unemployment payments and stimulus rebate, I am looking to change our filing status from joint to MFS. The return was already filed and accepted. How do I split interest and dividend income on jointly-owned savings and investments? How about capital gains and losses?

[JeffreyR77]

You can split jointly owned savings and investments assigning percentage of ownership to each spouse and disclosing same in the explanation of changes field on the Form 1040-X. 

You want to be clear on this as the brokerage likely has reported the earnings to the IRS under only one social security number. 

Use language like "Joint ownership with X% reported here and Y% reported under so and so with social security number ###-##-####." 

Your amended returns need to be filed by the May 17th filing deadline - after that date amending to changed from Married Filing Jointly to Married Filing Separately will no longer be allowed.

How to Change Your Tax Filing Status

[Davefeld]

When a specific percentage of ownership is not designated on a joint savings or investment account, should the default be 50/50?

[ThomasM125]

@Davefeld Yes, you would assign a 50% ownership to a joint investment unless it was clearly specified otherwise.

[Davefeld]

Thanks for the quick response. 

[Davefeld]

Thanks very much.