Joint account

[Floatinghousefunnn]

Hello,

I have a tax related question that is very basic.

Background:

I have a joint account with person B. We are both single (not married) adults. $7000 gets deposited from the government in my name. I claim that $7000 on my taxes each year.

Question: If person B withdraws that $7000 and puts it into another account that is just in their name, do they need to claim that $7000 on their taxes as well?

Thank you

[Bsch4477]

No they do not. 

[Hal_Al]

Q.  If person B withdraws that $7000 and puts it into another account that is just in their name, do they need to claim that $7000 on their taxes as well?

A. No. A gift is not reportable income to the recipient of the gift. Nor is it deductible by the giver.

But, if you give more than $15,000 to any one person in a year, you are required to file a gift tax return (something separate from your income tax filing ["return"]). 

"Gift Tax" is somewhat of a misnomer.  Even though a gift tax return may be required, very few people ever actually pay federal gift tax. The purpose of the gift tax return is usually only to document a reduction in the allowable estate tax exemption.
See https://turbotax.intuit.com/tax-tools/tax-tips/Tax-Planning-and-Checklists/The-Gift-Tax-Made-Simple/...  

[Opus 17]

Not all government deposits are taxable income. Assuming that this is taxable income, it belongs to the person to whom it is paid, regardless of what happens after.