When filing married filing separately for the first time how do I allocate the stimulus received and interest income on joint accounts?

[jenjul]

I can separate our wages and our unemployment income but the stimulus was paid jointly as was the interest. How should that be reported on each spouses return?  Turbo tax says u must report the stimulus amounts exactly.

[Opus 17 · Accepted solution]

The stimulus depends on how it was paid.  If the IRS recognized that you were joint filers, then they would have paid $2400 and $1200, and you would report half each.  If your income was more than $150,000 so that the stimulus was reduced, you would still report half each.    However, if only one of you received a payment, then it might have been $1200 to one spouse and zero to the other.  Look at your letters (form 1444 and 1444-B) that the IRS sent.

Interest income on joint investments can be divided any way you choose.  

If you live in a community property state, you would divide the interest 50/50, but you would also have to divide the wages and UEC 50/50 in most cases.  Separate returns in a community property state often require professional help. 

[jenjul]

Thanks so much.  I am in Michigan, so no community property.  Our stimulus was reduced but I assume it was paid jointly because we always filed jointly before.  When turbo tax asks for the exact amount of stimulus paid, I was hesitant to cut it in half for fear that it would raise a red flag on the return.