Hi
My daughter (not a minor) and I own a CD as joint owners which yielded interest in 2024 but the interest is reported against my Social since I am the primary owner of the account. I gave that entire amount to her for her to use. I want her to report the amount as income on her 1040. To do that I would do the following - correct me if I am wrong please.
1. By 2/28/2025 - I have to file/send a 1099-int Copy A with Form 1096 to IRS indicating her as the recipient of the amount. Payer information (TIN, address, etc.) would be mine and Recipient (TIN, address, etc.) would be my daughter with CD account number in account number box.
2. When I do my taxes I report the amount in Schedule-B but deduct it under nominee distribution so the interest amount is reflecting as 0.00 income for me on my 1040.
3. My daughter would file her1040 and show it as income on her Schedule-B and pay applicable taxes.
4. Address of both Payer and Recipient can be same right - no issues there.
Please let me know if I have to do anything else.
Thanks
K
