To allocate interest reported on a single Form 1099-INT between two account owners, follow these steps:
1. As you reach the page "Let's import your tax info", tap "Enter a different way".
2. On the next page check the "Interest" box.
3. On the next page tap "Type it in myself".
4. On the next page fill in the "Received from" field.
5. Enter the total interest amount in Box 1 and tap "Continue".
6. The next page displays "Uncommon situations".
Check off "I need to adjust the interest reported on my form".
Read the "Learn more" section.
7. On the next page enter the adjustment amount as a positive number.
Below the amount, from the drop-down menu,
select "Received all or part of this interest for someone else".
8. If you are currently using the TurboTax Free Edition, the next page will ask you to upgrade to the TT Deluxe version, since the Free Edition does not support entries for interest income.
This link shows IRS instructions addressing interest income.
We will be glad to answer any further questions.
