Allocating interest profits when filling married but separate.

[MDuerst]

My husband and I always file separately in Ohio for the best refund. Yes, I always run the numbers in every way possible and it is for sure the best way to do it. This is mainly because I work part-time, I just barely qualify for 50% of the retirement savings credit. If I file with him I get none. I have a high-yield savings account in my name. Well, the interest I earned this year put me into the 20% bracket, which is better than filling jointly but not by much. I am wondering if I am allowed to but the high-yield earnings on his taxes. All of our expenses are combined. This would give us the maximum refund possible. Does anyone know if that would be allowed?

[Vanessa A]

Who's name is on the account.  Ohio is not a community property state, so what is yours is yours and what is his is his when it comes to taxes. 

If the account is in both of your names, then the interest should be split based on who contributed what.  If it was contributed from a joint account, then you would split it 50/50.

  If the account is in just your name, you cannot put it on his return. 

[MDuerst]

The contributions are mostly his. It is a joint account but it only has my name on the 1099. 

[ThomasM125]

Since it is a joint account you can allocate the interest income to your spouse based on a percentage of what he contributed. If you are only filing the state return separate you will not have a problem with the Form 1099-INT only being in your name. The state will not get a copy of the Form 1099-INT like the federal government will so it is not likely the state will match your tax return with your interest statements. If they do question you about it you can tell them what happened and that should resolve the issue.