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Thanks for the explanation for NY state.

But it begs the question: what about CA state, which is a community property state?
How should I (and my spouse) report the 1099-INT received for a joint account, with both our names listed on the form?  Note that we are filing as "Married Filing Separate" for the first time (i.e. last year's return, and all other previous ones, have been filed as "Married Filing Joint".  Hence, I am particularly naive about this situation.

Thanks in advance.