topic Re: Interest on a Joint Account CD, But each person filing individual Returns. How is the Interest earned reported to the IRS and Handled on Tax Returns? in Get your taxes done using TurboTax

Interest on a Joint Account CD, But each person filing individual Returns. How is the Interest earned reported to the IRS and Handled on Tax Returns?

Martinmayer — Fri, 29 Nov 2024 14:11:40 GMT

I had a CD with my daughter, which earned interest this year.

How is that interest reported to the IRS? Is it under both Social Security Numbers?

We each will be filing individually.

How do each of us report the interest earned?

Re: Interest on a Joint Account CD, But each person filing individual Returns. How is the Interest earned reported to the IRS and Handled on Tax Returns?

VolvoGirl — Fri, 29 Nov 2024 17:35:05 GMT

The 1099INT will come with one ssn on it. They can report 100% on their return or you can split it up. Whoever's ssn is on the 1099 enters the whole amount on their return. Then after you enter it, on the next page it will ask - Tell us if any of these uncommon situations Apply and pick the first one, We need to adjust the taxable amount.

Then on the next page fill in their amount as a POSITIVE number and pick the first reason "I received all or part of this for someone else".

Then on the other person's return you enter it as a 1099 Int and put their amount in box 1.

Re: Interest on a Joint Account CD, But each person filing individual Returns. How is the Interest earned reported to the IRS and Handled on Tax Returns?

Mike9241 — Fri, 29 Nov 2024 17:43:09 GMT

on the first listed SSN in their return enter the gross interest

the 2024 interest income section is currently unavailable so I don't know if the procedure will change for 2024

in 2023 you'll come to a page that states "I need to adjust the taxable amount" this needs to be checked.

the next page. "check I received some or all of the interest for someone else" enter the other party's amount where indicated. enter as a positive number

schedule b will show the gross and a subtraction for the nominee amount.

the other party? i'm not sure whether they need to follow the above or just enter their portion.