2019 Schedule B: Interest Income from Joint Accounts

Forum|Forum|6 years ago
February 10, 2020
1 reply
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TP received interest income in 2019 from joint accounts with his mother in the amount of $900. Is the full amount reported in his Sch B? Or only half of the amount $450 is reportablea and taxable? The schedule B instruction seems to address the nominee accounts not joint accounts.

Thank you in advance for your time and comment.

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Best answer by itonewbie

@The Real Halloween wrote:

Thanks for the comment.

The joint account is a foreign account and TP's mother is a nonresident alien with no SSN.

If it is only interest income, it is fine to report as Anna suggested because interest on deposits is specifically exempted from tax under §871(i) so long as the interest is not US-ECI.

abctax55

Level 15

Whose SSN is on the 1099-Int?

That person reports 100%, & backs off 50% as "nominee" so the IRS can match.

The *other* person reports the 50% they're entitled to - the IRS doesn't care if you report MORE income than they are expecting to see on the return.

HumanKind... Be Both

T

The Real HalloweenAuthor

Level 6

Thanks for the comment.

The joint account is a foreign account and TP's mother is a nonresident alien with no SSN.

abctax55

Level 15

That sort of info would have been nice to have initially. My answer doesn't change, nor did you answer the specific question of "whose" SSN. It appears that the account is in the mother's name & some foreign ID number.

Beware of any FBAR/Form 114 reporting.

HumanKind... Be Both

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