Doing an MFS return for a couple who normally file jointly. I am not 100% sure if I need to split the 1099-INt and 1099-DIV. Account is JTWROS and all the funds in the account came from the taxpayer sources. Nothing in the account was contributed by the spouse. (was an inheritance from his Mom). I am also in NyS so NOT community property.
Pub 550 (I know, I know) states treatment Is to be determined by how state law looks at the account. JTWROS seem to only come into play when an owner dies....Trying to find a cite, but everything I read and search on seems to relate to when people die.....not when they are still alive.
My inclination is to report under the taxpayer ssn only since that is who this investment really belongs to and it is easily proven. Also who it is being reported to so no matching issues. But in this case, that puts the spouse under 75k.......if I have to allocate 50/50, she is above. And we all know the reasons for the magic 75K! Hence my wanting to be sure I get this right.
Forgive me if this is a stupid question.....i don’t normally run into this situation or when I have, the dollars have been immaterial.
Thanks in advance!