Filing separately on joint 1099INT and 1099DIV. Do I just divide the interest income evenly for the 1099INT and divide the ordinary dividends for the 1099DIV? What about the capital gains?

[KatrinaB48]

What state are you filing in?

[edrayjr]

Georgia

[KatrinaB48]

You should each enter your income forms on your federal return and the information will flow through to the state return. Georgia is not a community property state so you do not need to divide the income between you. The state software will calculate the tax for each of you.

[edrayjr]

what about dividing on federal?  We each got the same forms with the total interest and dividends on the joint accounts in both our names.  We have previously filed jointly but now we're going through a divorce and are filling separately 

[DMarkM1]

Dividing your federal income still depends on the laws of the state you are filing in.  The total must add up to 100%.  If you are in a community property state you would divide 50/50.  However in another state you may be able to divide however you agree with the other person(s).  

[edrayjr]

So do I divide the total interest in my federal return or not?

[DMarkM1]

Between the two of you 100% of the income must be reported.  Since GA is not a community property state, you could put 0% on your return and your spouse 100%  on theirs or vice versa.  Or you could each put 50% on your respective returns or 75 / 25.  Whatever you agree to as long as 100% is reported.  

[edrayjr]

Ok, so how do I enter this in Turbo Tax?  Do I adjust the dividends and interest to show I'm paying 50% as a nominee?  

[ReginaM · Accepted solution]

You will divide your 1099-DIV based on the rules for your residential state(s), as the type of state you live in governs how you divide your dividends on your return.  If you live in a community property state you must split your dividend earnings, the IRS states that you must follow suit for your federal return.  Community Property states are:states include:

• Arizona,
• California,
• Idaho,
• Louisiana,
• Nevada,
• New Mexico,
• Texas,
• Washington, and
• Wisconsin.

If you live in any other state, you can chose who gets to claim your 1099-DIV, using whatever % that you and your spouse chose.  

In TurboTax, do not select that you received this income as nominee, rather select other reasons.

For more information, See IRS Publication 504

[littleplacecalledaspen]

Is this the same for 1099 INT?  I receive all the 1099 INT & DIV's but they are joint accounts.  We would prefer to keep my taxable income down.  I am MFS, can I adjust the full amount on the 1099 INT and then my wife can take the full amount as a nominee, or does it need to be split 50/50?

[JohnB5677]

The first person listed on the 1099 is the owner and must report the entire amount on their return.  If there is a co-owner we can make an adjustment. 

Other than community property states you can allocate zero to 100% to the other individual.

To enter a 1099-DIV or INT you should post it as normal to the Owners return.

• Go to Wages & Income
• Work on other income
• Select Interest on 1099-DIV INT(You may have to scroll down to get it.)
• Did you receive any Dividend income? Yes
• Scroll down to Change how I enter my Form
• Scroll down to Type it myself
• Follow screens to enter the information
• After entering you data, you will come to a screen
• Tell us if any of these uncommon situations apply to you
  • Select I need to adjust these dividends or this is an ESOP distribution.
  • I need to adjust these dividends.
• Tell us about your dividend adjustment
  • Enter the amount you want to allocate to the other individual
  • I received all or part of these dividends for someone else

​​​​​​​​​​​​​​You must then enter the amount to the other person's tax return.

@littleplacecalledaspen

[DJR5]

Follow up to previous q&a. 

1 - Please confirm, for NJ resident I can report Div, Int and Cap gains on joint accounts  100% on the lower income spouse return (married file separate) even if the primary ss# is the higher earning spouse. Or any split I choose.

2 - Can I do 0%/100% for Divided, but 50/50 for capital gain/loss?

4 - How is capital loss carryover handled if filed joint in 2019 - can each spouse get a portion to max out the $1,500 each?

Thank you

[MaryM428]

New Jersey is not a community property state.  

You can split the joint dividend, interest, and capital gains in any proportion that you both agree to.

Use the proportions that are most beneficial to your returns.

IRS filing status

[DJR5]

Thanks you.