How to report 50-50 interest income in a joint CD

Forum|Forum|2 years ago
November 17, 2023
2 replies
34 views

Client and girlfriend (unmarried) pooled funds 50-50 and invested in an interest-bearing certificate of deposit. His name appears first, so the 1099-INT is all in his SSN. How do I adjust Sch B to indicate that? I can't enter a negative number for her share.

ProSeries Professional

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Best answer by rbynaker

The magic word you're looking for in the Sch B instructions is "nominee". There's a box for it in ProSeries on the Sch B Worksheet (double click on the Sch B line to get to the detail.)

G

GretaAuthor

Level 7

Con't

Perhaps enter girlfriend's interest income share as a negative income on Schedule 1 Line 8z?

rbynakerAnswer

Level 13

The magic word you're looking for in the Sch B instructions is "nominee". There's a box for it in ProSeries on the Sch B Worksheet (double click on the Sch B line to get to the detail.)

G

GretaAuthor

Level 7

WOW. 'Nominee' is the magic word indeed! Thank you!

I even waited for the details box to open, I was so thrilled. (During tax season I can't wait for it. Can that be fixed somehow?)

T

Terry53029

Intuit Community Champion

@Greta Nominee interest is interest that a person collects on behalf of someone else. When a person receives nominee interest, they are responsible for either paying tax on that interest or passing the interest on to its rightful owner. If the person who receives the nominee interest opts to pass the money on to the other person, they must fill out and file the tax form 1099-INT.

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