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Level 1
posted Feb 8, 2020 1:19:31 PM

Spliting interest when spouses in separate states

My spouse and I live separately in Illinois and Texas.  We file a joint federal return and separate state returns. How do you account for dividends and interest earned in joint accounts on the separate state returns?  Just split 50/50 or is there another method? Texas has no state income tax, so it would be more advantageous to put as much in Texas as possible

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1 Replies
Expert Alumni
Feb 9, 2020 2:46:54 PM

I would suggest the 50/50 split for joint accounts.  Unfortunately Illinois is very diligent so you do not want to be put under scrutiny.