Sharing a bank account with a partner or relative can make it easier to manage your money together.
But it can also lead to some confusion during tax season.
You must report and pay taxes on the interest you earn on a deposit account.
How does this work when you co-own an account?
Read on to find out.
The interest you earn on most standard bank accounts is taxable.
That includes checking and savings accounts, CDs, corporate bonds and deposited insurance dividends.
Not every account owner may receive this form.
you’re able to find specific instructions on how to fill out a 1099-INT on theIRS website.
The process is different if you’re married and filing jointly.
(More on that below.)
All account holders must note the nominee distributions when they file individual tax forms.
The amount of taxes you pay depends on your tax bracket.
