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Joint bank accounts - who pays taxes on interests?


I have a joint bank account with a relative. We file income taxes separately. Can either of us take the full amount of interest earnings and report it as income or do we have to split the interest income 50/50 and report it as such?

The 1099-INT will have a social security number on it - that's the person it was reported for to the IRS. That person can pay it all, or you can split it.

Usually on a joint account that isn't a married couple (who would probably be filing a joint return anyway so it wouldn't matter) the person whose ss# is on the account is the person whose money it is anyway, the other is just on the account for convenience, so it makes sense for the first person to pay the taxes.
It is always the primary holder on the account. The secondary signer would be liable if the primary is deceased to claim the interest on their taxes.

Jim
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