1099 INT Joint account

[JudyJoy]

My mom is currently a joint account owner on one of my CDs and Savings accounts.  She doesn't want to collect any of the interest that I earn, so can I just pay 100% of the taxes or will I be required to distribute some of the interest income to her?

[VolvoGirl]

Whose ssn is on the 1099 INT?  Should only be 1 ssn.  If it's your ssn that's good.  But if it comes with her ssn on it then you need to report it on her return as a nominee to give you the interest.  It won't be taxable to her.  

If her ssn is on the 1099 she enters the whole amount on her return. Then after she enters it, on the next page it will ask - Do any of these uncommon situations apply and pick the first one, I need to adjust the interest reported on my form.

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  your return you enter it as a 1099 Int and put the amount in box 1.

[JudyJoy]

It's actually my SSN on the 1099 INT as I'm the primary account holder.  So does that mean that she doesn't have to claim any interest and therefore she doesn't need to report it?  I just wanted to confirm with you that is correct.

Thank you for such a thorough and detailed reponse.  I so appreciate your help!

[Hal_Al]

Q. It's actually my SSN on the 1099 INT as I'm the primary account holder.  So does that mean that she doesn't have to claim any interest and therefore she doesn't need to report it?  

A. Yes, it's that simple.

Had it been the other way around, it gets more complicated but can still be done (as described by @VolvoGirl ).

[AmeliesUncle]

Whose money was deposited into the CD, and who will be receiving the money after the CD is withdrawn?

The answer to that is the same answer to who reports the interest.

[JudyJoy]

@Hal_Al 

Excellent, news.  Thank you very much!  I love simple! 🙂

[JudyJoy]

@AmeliesUncle  Makes sense, thank you!