Joint savings account with interest

[hmmtaxstuff2]

I received a 1099-INT for interest earned on a joint account.  My SS# is the only one on the form.  I understand how to enter the 1099-INT on my return and mark the nominee item.  What I don't know is if I have to issue a 1099-INT to the other person and file a 1096 with the IRS.  It is only one form and their name is actually on the account but only one 1099 was issued.  

Is it ok to mark the appropriate items and adjust my interest and have them enter just their portion on their tax return as interest without a 1099?

[DavidD66]

No, you cannot simply adjust the amount of interest you report and have the joint owner report theirs.  You will have to report the full amount of interest (and any other income).   After entering the interest you will need to adjust the taxable amount to deduct the amount that belongs to someone else and indicate it is a "Nominee Distribution".  You will have to issue the other person a Form 1099-INT and file it with the IRS.  

To do so in TurboTax:

1. Go to Wages & Income 
2. Select Start/Edit for Investment Income.
3. If you've already entered the 1099-INT Select Edit, otherwise select "Add Investments"
4. Select "Enter a different way" when prompted to "Connect your financial accounts". 
5. Click on "Type it in myself"
6. Select the "Interest" box and then Continue
7. Enter the 1099-INT exactly as shown on the form and Continue.
8. On the "Do any of these uncommon situations apply" screen, check the box "We need to adjust the interest reported on my form".
9. On the "Tell us about your Interest Adjustment" screen, enter the other person's interest and then select  "I received all or part of this interest for someone else (I am a nominee)" as the reason for adjustment.
10. The nominee interest will be properly adjusted on Schedule B. 

[LisaJade]

After following the steps you outlined in TurboTax to enter the 1099-INT "Nominee Distribution":

Q: What are the steps to issue the other person a new form 1099-INT and file it with the IRS?  Do I also have to file form 1096? And is filing the new 1099-INT (and form 1096?) with the IRS done through (snail) mail (versus through Turbo Tax)?

[DianeW777]

Yes, you will file both the 1099-INT and Form 1096. Follow the steps below to complete the filing with the IRS. 

Nominee Returns.  This is how the IRS knows what you are doing.

Generally, if you receive a Form 1099 for amounts that actually belong to another person or entity, you are considered a nominee recipient. You must file a Form 1099 with the IRS (the same type of Form 1099 you received).  You must also furnish a Form 1099 to each of the other owners. 

File the new Form 1099 with Form 1096 (this is a transmittal for the 1099) by mailing to the Internal Revenue Service Center for your area. (Provided on the Form 1096)

• On each new Form 1099, list yourself as the payer and the other owner, as the recipient. On Form 1096, list yourself as the nominee filer, not the original payer.  The nominee is responsible for filing the subsequent Forms 1099 to show the amount allocable to each owner.

The forms filed with the IRS should be the red copy (use the form(s) needed) so if you don't have a color printer, go to the IRS website to fill in and print the forms here: : 

• Form 1096
• Form 1099-INT

@LisaJade 

[TTUserSince1994]

I have a similar situation with a joint savings account that I had with my mother. She passed away on February 1, 2025 (the account was subsequently closed) and the 1099-INT came in her name and SSN.

It’s my understanding that the interest earned and posted in January (prior to her passing) will be claimed on her tax return, and I will claim the remaining interest earned on the account on my tax return. A tax accountant is doing my mother’s taxes, and I am doing my own through TT.

Based on the information provided in the answer above, the tax accountant doing my mother's taxes should be responsible for providing me with a 1099-INT for the amount of interest earned after she passed, showing my mother as the payer and me as the recipient, and also for completing and submitting my 1099-INT with the Form 1096 to the IRS.

As for getting the Forms 1096 and 1099-INT to complete and mail to the IRS, I thought that was something I should do. I had previously found the pages about these forms on the IRS website (the links are provided in the above comment), but the instructions there clearly indicate that the red forms are only for informational purposes and are not to be completed and submitted to the IRS, which contradicts the information provided in the comment above. That being the case, I have been at a loss as to where to acquire the forms that can be submitted to the IRS, which is why I am here.

At least I have learned that the 1099-INT I will need, and the Form 1096, should be provided and submitted to the IRS by the tax accountant doing my mother’s taxes. I’m glad I got clarification of this because I can’t get an answer from the tax accountant and I’ve finished my taxes and they’re ready to file.

[ThomasM125]

The accountant should prepare the 1099-Int form and submit it to the IRS using the Form 1096. If you are going to give your accountant the blank forms, you can order them using this link from the IRS. When you see the forms online as mentioned by @DianeW777 , you cannot simply print them out and use them to file as the filed forms need to be in red ink, unless you happen to have a color printer.