Joint Checking Accounts

[jra5588]

I recently got engaged and want to open a combined checking account between myself and my partner. I understand that there might be a gift tax trigger, but I don't really understand when/if this will occur? What other tax consequences do I need to consider?

I simply want to have a joint checking account that we can each have our salaries directly deposited into and pay expenses from. Does it matter if one of us makes more than the other? Also what would happen if i transferred money from the joint account into a separate joint checking (or brokerage) account? Both accounts would be under the same bank (Schwabb), I just want it to be easy for us to deposit money into and transfer any leftover into savings (brokerage account).

[tagteam · Accepted solution]

The annual threshold for filing a Form 709 (gift tax return) is $15,000.

See https://www.irs.gov/instructions/i709#idm140554828343488

Regardless, since you are not yet actually married, you might want to discuss your plan with a legal and/or financial advisor (and/or Schwab); there is more to your proposed transaction than income tax or gifting issues.

[Carl]

Most folks aren't aware of this, but there are financial institutions out there where you can open an account with only one user named on the account. But then you as that one account holder can grant access to others. With my credit union my Son has a checking account where "basically"  he's the one listed as the administrator of that account. Then he has authorized me as a user on the account.  I didn't have to sign any papers or anything of the such. He simply logged on to his online portal and added me as authorized user. So I can make online deposits, withdrawals, and transfers on his behalf as needed. Any tax documents on the account are all issued to him as required at tax filing time.