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How to enter a JTWROS account in tax return
Old 02-10-2024, 08:34 PM   #1
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How to enter a JTWROS account in tax return

Hello there,

My friend and I have an investment account as JTWROS (joint tenant with rights of survivorship). We are not married and file separate tax returns (I'm single, she's married and files jointly with her husband).

In 2023 this account produced a bit of interest (reported in a 1099-INT), and a net short term capital loss (1099-B). My friend will claim all of that in her return, I don't intend to claim any of it.

My SSN appears in the form that the broker issued us. Do I still need to enter the 1099-INT and the 1099-B for this account into my tax return? If so, how do I ensure that the interest and the loss don't factor into my calculations, so she can claim all of them?

In case it helps, I'm using H&R Block Deluxe for Windows. I don't think she uses tax software, she gets her taxes done with a CPA. I tried H&R Block chat support to ask this question and they were useless... so hoping that this community can come up with some ideas!

Thanks for any ideas or suggestions!
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Old 02-10-2024, 09:20 PM   #2
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There are a couple of ways to handle this.

Easy way: report it on your tax return and settle up the difference with your friend outside of the tax system. You might owe her or she might owe you, it depends on the relative amounts of interest and cap loss.

Official way: treat it as nominee income/loss. See the instructions for nominee interest here: https://www.irs.gov/instructions/i1040sb and for nominee cap gains/losses here: https://www.irs.gov/instructions/i1040sd
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Old 02-10-2024, 09:30 PM   #3
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See IRS tax topic: https://www.irs.gov/taxtopics/tc403. Read the paragraph labeled Nominee recipient.

Maybe her CPA can guide you folks.

Regarding the cap gains. See instructions for Schedule D

https://www.irs.gov/instructions/i10...%20a%20nominee.
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Old 02-10-2024, 10:31 PM   #4
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And change the TIN on the brokerage account to HER SSN!
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Old 02-10-2024, 10:36 PM   #5
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Quote:
Originally Posted by pb4uski View Post
And change the TIN on the brokerage account to HER SSN!
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Old 02-11-2024, 12:05 AM   #6
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Quote:
Originally Posted by pb4uski View Post
And change the TIN on the brokerage account to HER SSN!
And/or the structure of the account. JTWROS might not be the best option depending on what OP is trying to accomplish.
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Old 02-11-2024, 10:47 AM   #7
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Thank you all for this information! Very helpful. Yes - we're working with the broker so that it's her SSN on the account moving forward!
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