posted by admin on Jan 7
Sarah asked:
If someone has a joint account with someone other than a spouse, who is responsible for reporting dividends or interest when filing taxes? Is it split in half? Does it matter whose name is first on the account? Also, do dividends have to be reported if they are all automatically reinvested? Thanks!
better than Magic! & keep your old phone number/8.95$/ month
Sphere: Related ContentIf someone has a joint account with someone other than a spouse, who is responsible for reporting dividends or interest when filing taxes? Is it split in half? Does it matter whose name is first on the account? Also, do dividends have to be reported if they are all automatically reinvested? Thanks!
better than Magic! & keep your old phone number/8.95$/ month
January 8th, 2009 at 8:32 am
The person whose ss# is on the account can report them.
And yes, you report dividends even if they are reinvested. Keep track of them though - when you sell the stock the amount you’ve already paid tax on is part of your basis.
January 11th, 2009 at 5:34 am
the person whose name and SS# are on the account should claim the income. they should have received a form 1099-DIV with the amount of the dividends paid. and absolutelty YES, the dividends have to be reported even if reinvested.
January 12th, 2009 at 11:02 pm
I assume you and the other party have some understanding about who owns what in the account. If not, why not? Once you decide whose interest and dividends they are, each person reports his income on his return. To avoid confusing the IRS computer, you need to let it know who the dividends really belong to.
From the instructions to Form 1099-DIV:
“Nominees. If this form includes amounts belonging to another
person, you are considered a nominee recipient. You must file Form 1099-DIV with the IRS for each of the other owners to show their share of the income, and you must furnish a Form 1099-DIV to each. A husband or wife is not required to file a nominee return to show amounts owned by the other. See the 2008 General Instructions for Forms 1099, 1098, 5498, and W-2G.”