Who claims dividend income from a joint account of two people who do not file together?

Forum|Forum|2 years ago
March 4, 2024
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I created a joint account with my son on a stock investing site with the idea of investing for him. I did not consider the tax implications. My son is in his mid 30s, not married and no children. We received a 1099-Div in both our names. I intend to only invest, and so in the future we will only get 1099-Divs. Eventually, it will be his account only, but for now, I am the person funding the account. I file taxes jointly with my husband. How do we each deal with this dividend income. I would prefer that my son list it on his taxes, but I want to do this correctly. Thanks.

Not A Product Question

JamesG1

If you arrange for your son to pay tax on the dividends reported on the IRS form 1099-DIV, both of you should enter the dividends on your tax return.

However, on your tax return, at the screen Tell us if any of these uncommon situations apply to you, select I need to adjust these dividends.

For the adjustment amount, enter the full amount of the dividends.

On your tax return, IRS Schedule B will report the full amount of the dividends, also selecting (I am a nominee.)