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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 Reply
MaryK4
Expert Alumni

Spliting interest when spouses in separate states

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.

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