Investment account jointly owned but reported under one spouse's SSN.

Atlanta, GA Viewed 20 times. Posted 3 months ago in Tax

My ex-husband and I have a joint investment account which is reported to IRS under his SSN. Because I was not aware of the issue of paying taxes on capital gains/dividends, I did not include any capital gains/dividends in my tax returns for the past two years when I filed as "married filed separately". He now issued me several Form 1099-DIV which shows that he has given me the dividends, but I have never received any payment from him. He was the one who withdrew a large sum of money for his own use last year. Shouldn't he be responsible for the capital gains? What do I need to do? Thanks. - Is this your question? Add additional information

Answers (1)

Steve Fromm

This attorney is licensed in Pennsylvania. Posted 2 months ago.

It would seem to me that since the account has his social security number he is responsible for paying taxes on the income related to such account. The brokerage house issued the Form 1099 to him. I do not believe that he can issue a Form 1099 to you. He is not a bank, brokerage house, etc.
From a tax standpoint, you probably have to do nothing, at least at this point.
The real question though is if this account is truly joint and it is presumed you are no longer together or in good standing with each other, why not divide the account equally between you. If the answer is that it is truly his assets then you would not be liable for any related tax liability.

Hope this helps

LEGAL DISCLAIMER
Mr. Fromm is licensed to practice law in PA. The response herein is not legal advice and does not create an attorney/ client relationship. The response is in the form of legal education and is intended to provide general information about the matter within the question. Oftentimes the question does not include significant and important facts and timelines that if known could significantly change the reply unsuitable. Mr. Fromm strongly advises the questioner to confer with an attorney in their state in order to ensure proper advice is received.

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