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Bank interest

Forum|Forum|3 years ago
January 31, 2023
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I was recently put on my parents bank accounts as a joint holder. How do I claim the interest on their accounts? Is it split in thirds? This is new to me...

Best answer by HelenC12

It depends if you received a 1099-INT with your Social Security Number (SSN) and/or if you kept any of the interest income.

If the 1099-INT was issued to you and you kept the interest, you would report all the income.

If the 1099-INT was issued to your parents and they kept the interest, you wouldn't report the interest on your income tax return.

If the 1099-INT was issued to you but you didn't keep the interest, you gave it to your parents, you are a nominee (you receive interest that actually belongs to someone else). You need to report the income on Schedule B and then subtract it out as a "Nominee Distribution". In this case, you will also need to report the interest belonging to your parents by issuing a Form 1099-INT to them and send a copy to the IRS.

H

HelenC12Answer

It depends if you received a 1099-INT with your Social Security Number (SSN) and/or if you kept any of the interest income.

If the 1099-INT was issued to you and you kept the interest, you would report all the income.

If the 1099-INT was issued to your parents and they kept the interest, you wouldn't report the interest on your income tax return.

If the 1099-INT was issued to you but you didn't keep the interest, you gave it to your parents, you are a nominee (you receive interest that actually belongs to someone else). You need to report the income on Schedule B and then subtract it out as a "Nominee Distribution". In this case, you will also need to report the interest belonging to your parents by issuing a Form 1099-INT to them and send a copy to the IRS.

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M

Marty F

Do you have to report if it less than 50 cents per account? I have a 7 cent entry and cannot override the downloaded information. ( a check mark on the 1099int form)_

DoninGA

Employee

@Marty F wrote:

Do you have to report if it less than 50 cents per account? I have a 7 cent entry and cannot override the downloaded information. ( a check mark on the 1099int form)_

For an interest amount of $0.07, the interest does not have to be reported. If you started the Form 1099-INT you can delete the form.