I have a joint bank account with a relative. We file income taxes separately. Can either of us take the full amount of interest earnings and report it as income or do we have to split the interest income 50/50 and report it as such?
2007-04-12 00:47:24 · 5 answers · asked by just_curious 1 in Business & Finance ➔ Taxes ➔ United States
The 1099-INT will have a social security number on it - that's the person it was reported for to the IRS. That person can pay it all, or you can split it.
Usually on a joint account that isn't a married couple (who would probably be filing a joint return anyway so it wouldn't matter) the person whose ss# is on the account is the person whose money it is anyway, the other is just on the account for convenience, so it makes sense for the first person to pay the taxes.
2007-04-12 02:21:06 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
Joint Account Tax
2016-12-18 16:13:16 · answer #2 · answered by ? 4 · 0⤊ 0⤋
There are no taxes on having a bank account. In theory, there are still taxes on any interest that the bank pays you. However, this is not enforced if the interest is under $10 per year. At current interest rates (typically on the order of 0.1%), you would need at least $10,000 in the bank account for it to be an issue. Even with that balance, the tax would be less than $3.
2016-04-01 10:51:12 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Get Joint Pain Relief Codes!
2016-07-27 00:36:08 · answer #4 · answered by ? 4 · 0⤊ 0⤋
It is always the primary holder on the account. The secondary signer would be liable if the primary is deceased to claim the interest on their taxes.
Jim
2007-04-12 00:52:05 · answer #5 · answered by AnchorBay Jim 1 · 0⤊ 0⤋