I have an investment account. Originally I was getting much refunds for both Federal and State before I added the information for my investment. Then, once I added the 1099-DIV, the federal tax became much DUE. I don't have that much investment, nor did I earn that much dividend. Indeed, the amount of the dividend is many times less than what my tax increases. That got me thinking WHY? Is it because I solely own the investment but not joint with my husband while filing jointly???
1. Would someone kindly explain how the tax differs between sole owner vs joint-owner for an investment account earnings. Are there any differences when filing for the tax???
2. Would it actually better to have a joint investment account than having my husband as a beneficiary regarding tax perspective? I am not sure what "if one contributes much more than the other account owner, then IRS would treat it as a "gift" means???? If we both owned the same account, we put cash there for investment, but NOT a retirement at all???
Thanks much for the help
