How do I split the tax on a 1099-int for a joint bank account?

[Bsch4477]

If you are filing jointly you don’t have to split it. If filing separately each reports half. 

[jsphtovar]

Well the other account holders are my siblings not my wife. I Read that I have to create another 1099-int and file form 1096 but I don’t see these forms inside of turbo tax and it also does not inform me to send these forms. 

[Bsch4477]

If you want to allocate the interest differently for tax purposes (such as your proposal that you want to split the income 50/50), it's possible to do so, but it involves quite a bit of paperwork. The person who received the 1099-INT needs to file Form 1040 Schedule B and subtract the amount of interest that should "belong" to the other person as a "Nominee Distribution", and then issue their own 1099-INT to the other person for that amount of interest, so that the other person can appropriately list it on their own return. For details, see the section on "Nominee distributions" in Publication 550.

A simpler way, if you are all in similar tax brackets is for the one who received the income to report it on his return and have the others gift to him the amount of money that offsets the extra tax paid. 

[janethenag]

The software has a glitch (downloaded Premier for 2020).  You should be able to enter a negative amount which is the counterintuitive way to adjust for a positive interest amount.  The interest calculations are then correct but the SmartCheck function at the end tells you that the amount has to be positive.  This has been reported to TurboTax but it has been weeks and is still not fixed.

[Cass0317]

@janethenag Please see the TurboTax FAQ below for help with negative values:

  How do I fix my 1099-B negative values?