No, you cannot simply adjust the amount of interest you report and have the joint owner report theirs. You will have to report the full amount of interest (and any other income). After entering the interest you will need to adjust the taxable amount to deduct the amount that belongs to someone else and indicate it is a "Nominee Distribution". You will have to issue the other person a Form 1099-INT and file it with the IRS.
To do so in TurboTax:
- Go to Wages & Income
- Select Start/Edit for Investment Income.
- If you've already entered the 1099-INT Select Edit, otherwise select "Add Investments"
- Select "Enter a different way" when prompted to "Connect your financial accounts".
- Click on "Type it in myself"
- Select the "Interest" box and then Continue
- Enter the 1099-INT exactly as shown on the form and Continue.
- On the "Do any of these uncommon situations apply" screen, check the box "We need to adjust the interest reported on my form".
- On the "Tell us about your Interest Adjustment" screen, enter the other person's interest and then select "I received all or part of this interest for someone else (I am a nominee)" as the reason for adjustment.
- The nominee interest will be properly adjusted on Schedule B.
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