Bank interest

[Suzieqqqq]

I was recently put on my parents bank accounts as a joint holder.  How do I claim the interest on their accounts?  Is it split in thirds?  This is new to me...

[HelenC12 · Accepted solution]

It depends if you received a 1099-INT with your Social Security Number (SSN) and/or if you kept any of the interest income. 

If the 1099-INT was issued to you and you kept the interest, you would report all the income. 

If the 1099-INT was issued to your parents and they kept the interest, you wouldn't report the interest on your income tax return. 

If the 1099-INT was issued to you but you didn't keep the interest, you gave it to your parents, you are a nominee (you receive interest that actually belongs to someone else). You need to report the income on Schedule B and then subtract it out as a "Nominee Distribution". In this case, you will also need to report the interest belonging to your parents by issuing a Form 1099-INT to them and send a copy to the IRS. 

[Marty F]

Do you have to report if it less than 50 cents per account?  I have a 7 cent entry and cannot override the downloaded information. ( a check mark on the 1099int form)_

[DoninGA]

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@Marty F wrote:

Do you have to report if it less than 50 cents per account?  I have a 7 cent entry and cannot override the downloaded information. ( a check mark on the 1099int form)_

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For an interest amount of $0.07, the interest does not have to be reported.  If you started the Form 1099-INT you can delete the form.