After Divorce keeping joint mutual fund account

Forum|Forum|4 years ago
March 6, 2022
7 replies
59 views

We still keep and intend to keep a joint ownership of a mutual fund account with my ex-husband after divorce in 2021. Since filing separately, how are we supposed to show the joint 1099-DIV in our tax returns? Also, does it matter that my ex-husband is the first holder on the joint account? Thank you.

Not A Product Question

LeonardS

Level 14

Each of you will report your share of the 1099-DIV per your divorce agreement on your tax return. No, it does not matter that your ex-husband is the first holder on the joint account.

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Critter-3

Level 15

If one person's SS# is on the tax forms then the IRS will expect ALL of the income to be reported on their return which can cause headaches in the future with the IRS since you can nominee interest and dividends but not stock sales. The correct reporting will take time and effort so it would be wise to get the account split between the 2 of you by the broker so you each get your own tax reporting form and avoid IRS audit letters in the future.

Mike9241

Level 15

per the iRS

Nominees. If this form includes amounts belonging to another person(s), you are considered a nominee recipient. Complete a Form 1099-INT (div or other form) for each of the other owners showing the income allocable to each. File Copy A of the form with the IRS. Furnish Copy B to each owner. List yourself as the “payer” and the other owner(s) as the “recipient.” File Form(s) 1099-INT with Form 1096 with the Internal Revenue Service Center for your area. On Form 1096, list yourself as the “filer.”

Mike9241