Since Ct. is an equitable distribution state and not a community property state, can we divide the bank interest any way we wish on the federal return when married filing separately? If so, how is it done using TurboTax? The joint bank account has me on the 1099-INT as the primary without listing my wife. The interest division has state tax implications in CT.
Thank you.
Yes, you can divide however you agree. Typically, the division is based on percent of investment. You will enter the 1099-INT just as you received it. Indicate the bank name and that the interest belongs to you. After entering, you will be asked "Do any uncommon situations apply?" Select the box for "I need to adjust the interest." Enter the amount that belongs to your spouse as a positive number and select that "you received interest that belongs to someone else."
In you spouse's return she will report the amount as interest received from you. She puts your name instead of the bank name for the "Received from" box. Investment interest divided between spouses does not require you to issue a 1099-INT.
Enter your E-mail address. We'll send you an e-mail with instructions to reset your password.
©1997-2022 Intuit, Inc. All rights reserved.
Intuit,
QuickBooks, QB, TurboTax, ProConnect, and Mint are registered
trademarks
of Intuit Inc. Terms and conditions, features, support, pricing,
and service options
subject to change without notice.
Security
Certification of the TurboTax Online application has been
performed by
C-Level Security.
By accessing and using this page you
agree to the
Terms of Use.
Accessibility
