Allocating interest income when married, filing separately

Discussion in 'Tax' started by dogh0use@fastemail.us, Apr 4, 2006.

  1. Guest

    What, if any, are the alternatives for allocating interest
    income on a joint bank account when married and filing
    separately? Does the interest have to go on the return of
    the first person named on the account (and who receives the
    1099-INT) or can it be allocated 50/50?

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    , Apr 4, 2006
    #1
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  2. Guest

    You can allocate it 50/50. To do this, list it as income on
    the return of the one who gets the 1099INT, then on a
    separate line, state Nominee interest, the name/SSN of the
    person to whom the rest of the interest belongs, and enter a
    negative number to subtract out his/her share. Most tax prep
    software will allow you to designate some or all of the
    interest as nominee interest, and will do this
    automatically.

    Dennis

    << ======================================================= >>
    << The foregoing is intended for educational purposes only >>
    << and does NOT constitute legal OR professional advice. >>
    << >>
    << The Charter and the Guidelines for submitting >>
    << messages to this newsgroup are at www.asktax.org. >>
    << Copyright (2006) - All rights reserved. >>
    << ======================================================= >>
     
    , Apr 5, 2006
    #2
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  3. D. Stussy Guest

    wrote:

    > You can allocate it 50/50. To do this, list it as income on
    > the return of the one who gets the 1099INT, then on a
    > separate line, state Nominee interest, the name/SSN of the
    > person to whom the rest of the interest belongs, and enter a
    > negative number to subtract out his/her share. Most tax prep
    > software will allow you to designate some or all of the
    > interest as nominee interest, and will do this
    > automatically.


    Note: You may be REQUIRED to allocate it 50/50 if you live
    in a community property state. Also, although it may not
    hurt, nominee reporting between spouses for MFS purposes is
    not required.

    << ======================================================= >>
    << The foregoing is intended for educational purposes only >>
    << and does NOT constitute legal OR professional advice. >>
    << >>
    << The Charter and the Guidelines for submitting >>
    << messages to this newsgroup are at www.asktax.org. >>
    << Copyright (2006) - All rights reserved. >>
    << ======================================================= >>
     
    D. Stussy, Apr 10, 2006
    #3
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