I have a joint savings account with someone. When we file taxes do we both have to claim the interest or just one of us? We are not married.
2007-01-19 07:25:19 · 7 answers · asked by jcn 4 in Business & Finance ➔ Taxes ➔ United States
Both of our SSN's are on the account. But the other person is the primary on the account. I'm the secondary. I guess what I'm asking is, since I made more money last year I don't want to have to claim this, so can they just claim the whole thing?
2007-01-19 08:10:00 · update #1
with interest it works to the affect of as long as together you are claiming 100% it dosen't matter for example if each one of you claims 50% that is fine. 75% or 25% so on so forth.
2007-01-19 07:39:43 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Whose SS number is on the account? The IRS will be expecting that individual to report the income on his tax return. There are ways to divide the interest and each of you report half, but the person whose SSN is on record is going to have to submit an explanation to the IRS with the return because the two amounts won't match. What you DON'T do is to each report the full amount as interest income.
2007-01-19 15:32:27 · answer #2 · answered by SDD 7 · 0⤊ 0⤋
The person who has the SS number on the account should report it to avoid IRS matching problems. Technically this person could give a 1099 to other person so that each reports their share. Since this is a big aggravation most people just pay the tax and ask the other person to pay them back their tax on the interest.
2007-01-19 15:49:41 · answer #3 · answered by spicertax 5 · 0⤊ 0⤋
You share the interest in a way that works out for you. If you have no written agreement, then sharing 50/50 is reasonable.
When the IRS looks at the 1099 from the account, they're not going to care who the money is intended for, they're going to look at whose name is on the account, the account owner.
If both of your names are there, you share it.
2007-01-19 15:31:22 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Whose ssn is on the acct 1st or is there only 1 ssn on it? 1 of you best answer with SSN deciding who.
2007-01-19 16:06:55 · answer #5 · answered by vegas_iwish 5 · 0⤊ 0⤋
If you file separately, you should not both claim the income. That would be claiming it twice.
2007-01-19 15:30:45 · answer #6 · answered by enginerd 6 · 0⤊ 0⤋
get your own checking account if you are not married. That is just a disaster waiting to happen.
2007-01-19 15:28:16 · answer #7 · answered by ANDREA K 2 · 0⤊ 0⤋