That pretty well sums it up... ie, if myself and another person are joing checking acct holders, and lets say the acct has a nightly sweep automatically of all balances over $500 into a 5% money market acct. And lets say we keep a balance of $50,000 in the checking acct since it earns a nice rate of interest on unused balances. At the end of the year, how are the taxes handled.. I would assume that both owners, who I imagine have to each give their SS numbers when opening the account jointly, receive a
1099 at year's end. But how are the taxes handled, ie, can one pay the entire tax without the joint party being billed also? How is it tracked and handled as to who pays the tax on the interest earned on a joint acct like this. Same would apply if it were any kind of joint account where interest or dividends are earned. Thanks much.paul