Filing where there is a joint bank account but filing separately

Forum|Forum|1 year ago
April 4, 2025
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I live in VA and have a foreign bank account with my child (over 21) as a joint account holder. That account received interest from the FDs with the bank. There was also a deposit that was specific for the child. We are filing separately. My questions are:

1. How should the interest earned in this bank account be distributed amongst us?

2. Should the deposit meant for my child be split evenly as well or that deposit can go against my child's filing

3. How about when it comes to Foreign Tax credit on the interest paid? Do we spilt this in half as well?

THanks in advance. Really appreciate and enjoy being in this forum.

MAK70

You can report the share of the interest income that was attributed to your share of the deposit funds (so if you deposited all of the money into the account, it is your income). You will allocate the deposit to your child as well. If you paid tax to the other jurisdiction, you can once again claim the credit fore the taxes you actually paid.

funnychapAuthor

So, if the interest earned is $100, I will take $50 and my child takes the other 5$ on her tax return?

Also, if my child received a capital gain distribution into her account (a mutual fund held by another bank was liquidated and deposited in the joint account), can she put the entire amt on her return, or we split 50%.

I appreciate all your help.. THank you

DaveF1006

Yes, you would split the interest earned and report the income 50/50 in each of your tax returns. I would also split the capital gain 50/50 also and report the income in each of your returns.

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