How to treat Joint Account INT and DIV Income of an unmarried AZ couple who file separately.

Forum|Forum|1 year ago
March 15, 2025
1 reply
0 views

The account was setup with both names appearing on the statements and 1099s but the SSN of only one of the owners.

My research leads me to believe the owner with the SSN account number must designate the other owner as a nominee.

There seems to be a box to check to indicate there is a nominee for part of the income but no way to identify the nominee by SSN and specify the amount shared.

An answer was offered by MailynG1 but it assumed we were a MFS couple and not domestic partners in a state(AZ) that doesn't recognize domestic partnership.

I would really like to be able to handle this and file with TurboTax now and in the future.

Can you help? Thank you.

Best answer by KeshaH

RobertB4444,

Which IRS form and what lines on that form allow me to enter the information that identifies the 1099 that the shared funds come from? I would think it requires a SSN of the sharer who designates me as a nominee.

Thank you,

Bill

The nominee owner (partner that received the 1099-INT) would need to issue the other owner a 1099-INT and file a Form 1096 with the IRS to report the nominee income.

MonikaK1

The way you split the interest income will not affect either party's ability to e-file their return.

The partner to whom Form 1099-INT is issued could also just choose to declare all of the income and then gift part of it to the other partner.

Download a PDF of the Form 1099-INT here. Review the instructions as to how to complete and file the form if applicable.

Or, the partner not on the 1099-INT could report half as income and the other could report all of the 1099 and then select the option to adjust the interest as a nominee, and enter a negative number for the amount that person is not reporting. See screenshots below.

See this TurboTax tips article for more information.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

marinchipAuthor

Employee

Thanks, Monika. Still not clear how the IRS will recognize that the income comes from the Joint Account without my SSN on the account 1099s.

RobertB4444

They won't. The interest income is reported using only the social security number of the primary account holder. By filing the nominee information you tell the IRS who you are sharing the income with.

@marinchip

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"