Solved
Bank interest
I was recently put on my parents bank accounts as a joint holder. How do I claim the interest on their accounts? Is it split in thirds? This is new to me...
It depends if you received a 1099-INT with your Social Security Number (SSN) and/or if you kept any of the interest income.
If the 1099-INT was issued to you and you kept the interest, you would report all the income.
If the 1099-INT was issued to your parents and they kept the interest, you wouldn't report the interest on your income tax return.
If the 1099-INT was issued to you but you didn't keep the interest, you gave it to your parents, you are a nominee (you receive interest that actually belongs to someone else). You need to report the income on Schedule B and then subtract it out as a "Nominee Distribution". In this case, you will also need to report the interest belonging to your parents by issuing a Form 1099-INT to them and send a copy to the IRS.
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