How do I split a 1099-INT for bond purchased while married and that only has me on it, but I'm now divorced and filing as a single individual

[Dev333]

While I was married, I purchased a series I bond using joint marital money. The bond was purchased with ONLY me as the name/SSN on it.

I was officially divorced in January 2024. 

Per our agreement, immediately after the divorce was finalized, I cashed out a series I bond in February 2024. We split the money (which was the agreement since it was purchased with marital funds)

I am now getting ready to do my taxes for year 2024 and the government sent me a 1099-INT for the bond. As expected, it only lists me. The Interest earned and reported on the 1099-INT needs to be split between me and my ex 50/50 however. We are in different tax brackets.

What would be the proper way to do this?

I read something about a nominee thing but I'm not sure this is correct, or how I go about that, or how you do the paperwork. I'm not sure if there are deadlines either such as the ex needing a 1099 from me by Jan 31st?

No idea if a 1099-INT can be split and how you do it

[KrisD15]

You could enter the 1099-INT in your return and select "I need to make an adjustment" 

Enter the portion that your former spouse received and select "I received as nominee"

The only problem with that is that you would need to be sure your former spouse claims the other half on their return. 

[Dev333]

Sounds easy enough.

But would my former spouse need a 1099-INT? Can I just send her the one I received that only has me on it?

Do I need to create a new 1099 for my former spouse? How do I know I won't be audited because lets say the interest earned is $900 but I entered $450 

Or is it just as simple as what you said?

[ThomasM125]

You are required to file the Form 1099-INT to your ex-spouse since you are no longer married. You can find the forms from vendors online. You would also need to File Form 1096 to transmit the 1099-INT to the IRS.

[Dev333]

Now I am confused.

I only have one 1099-INT from the treasury for the bond redemption. It's in my name (even though it was purchased with joint marital money).

Now I have to create a 1099 for my spouse? How? Is there a deadline?

[DaveF1006]

No. You don't need to create a separate 1099 for your spouse. The IRS considers interest income from jointly owned property to be shared equally between spouses. You can report half of the interest income on your tax return and the other half on your spouse's tax return.