Split it 50/50. Whose name and ssn are on the 1099Int? You may need to fill out Nominee interest for it.
Here's how to split the 1099Int for Nominee Interest. Enter a 1099-Int under
Federal Taxes tab
Wages & Income
Choose Jump to Full List -or I'll choose what I work on
Interest and Dividends
Interest on 1099-INT - Click the Start or Update button
Whoever's ssn is on the 1099 enters the whole amount on their return. Then after you enter it, on the next page it will ask
Tell us if any of these uncommon situations Apply and pick the first one, We need to adjust the taxable amount.
Then on the next page fill in the amount as a POSITIVE number and pick the first Reason "I received all or part of this interest for someone else".
Then on the other person's return you enter it as a 1099Int and put their amount in box 1.
Does this also apply for Dividends and Capital gains forms (1099Div and 1099B) for Married Filing Separate? If we have a joint account and the form has both our names, but my social security #, I should select the "nominee" check box and adjust off my spouse's portion.
Yes. You can indicate a nominee for dividends, as well as interest. See the instructions on page B-2.
Regarding this 50/50 split. I am trying to split my 1099-INT with my husband who is joint owner on the bank account. I saw the nominee distribution on schedule B after I deducted half (using the POSITIVE number). Now, on my husbands return (married filing separately) do i just put that half amount in his interest section? Or, do I have to do the same process with the Nominee Distribution as I did on my return? So, would I simply add the bank name and half the amount in Box 1 in Turbo tax on his? so the full amount of the 1099-INT will show on my return so the IRS knows that I reported it, but then it will show I deducted half and they will automatically go to my husbands return to verify he reported the other half? I'm reading things about filling out a 1099-INT, however the IRS states that if it is a spouse you are splitting it with you do NOT have to. Does that also mean the Form 1096 does NOT have to be filled out either (if it is your spouse you are splitting it with)?
The person whose Social Security number is on the form 1099INT should do the Nominee information the other person simply reports their share of the interest as income on their return.
How does this work for joint K-1s? Also, what if the spouse with the name on the document is late in filing? Can the one filing on time enter the information and nominate?
It all works split down the middle on form 8958 if you are in a community property state. If you are just allocating income then yes, you split it down the middle and enter your K-1 with your spouse as the nominee. Who files first is irrelevant.