Yes, you can divide however you agree. Typically, the division is based on percent of investment. You will enter the 1099-INT just as you received it. Indicate the bank name and that the interest belongs to you. After entering, you will be asked "Do any uncommon situations apply?" Select the box for "I need to adjust the interest." Enter the amount that belongs to your spouse as a positive number and select that "you received interest that belongs to someone else."
In you spouse's return she will report the amount as interest received from you. She puts your name instead of the bank name for the "Received from" box. Investment interest divided between spouses does not require you to issue a 1099-INT.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
This answer has been verified for accuracy by an Intuit expert employee
