If i have capital gains on a joint investment account with my fiancé, can i claim all the gains and pay the tax for all of the transactions on my return?

[brandanadams7]

if so, will she not report anything on her return?

[MinhT]

Joint account earnings can be split 50/50 or in whichever proportions as the joint account holders agree.

If you report 100% of the capital gains, then your fiance does not report anything on her tax return.

There should be a primary SSN that the account is associated with, and IRS will match that with whoever's SSN it is. So whoever's return it goes on, or does not go on, make sure 100% is reported to IRS between the two returns.  Also due to IRS matching this document, you may get a letter a year or two and may have to explain to them, how it was reported.  So keep the tax documents in your tax records for at least 3 years.

[Anonymous]

I wonder if the first-time choice made, say taking 100% reporting of the event on just one of the joint owner's return, sets a precedent that must be followed on future returns.  Or, can we switch yearly between which joint owner will be doing the reporting?   For example, if one of joint owners is in a high tax bracket, and the other is in low tax bracket, we can see advantages choosing one-over-the-other, and that could change in different years.

[DianeW777]

You can decide where you want to report it each year between the joint owners.  As noted by @MinhT the social security number (SSN) associated with the account is where the IRS will be looking for the income.

You can also use the following nominee procedures to assign the portion of the income being reported by the person whose SSN is not on the tax document.

Nominee Returns.

Generally, if you receive a Form 1099 for amounts that actually belong to another person or entity, you are considered a nominee recipient. You must file a Form 1099 with the IRS (the same type of Form 1099 you received).  You must also furnish a Form 1099 to each of the other owners. 

File the new Form 1099 with Form 1096 (this is a transmittal for the 1099) by mailing to the Internal Revenue Service Center for your area. (Provided on the Form 1096)

• On each new Form 1099, list yourself as the payer and the other owner, as the recipient. On Form 1096, list yourself as the nominee filer, not the original payer.  The nominee is responsible for filing the subsequent Forms 1099 to show the amount allocable to each owner.

The forms filed with the IRS should be the red copy so if you don't have a color printer, go to the IRS website and order the forms here: 

• Form 1096-Transmittal 
• Form 1099-DIV 2020
• Form 1099-INT 2020

• Form 1099-B 2020

[Onewiki]

I have just started to prepare for my tax return (I filed an extension). Is it too late to file nominee returns with the IRS?

If it is too late, would I be in trouble if I don't file the nominee returns? When you said "You can also use the following nominee procedures", it sounds like nominee returns are optional. Thanks.