ANSWERS: 2
  • No, she needs to file a revised tax return. You can't report income received by another person on your own return. It will just confuse the IRS, they will receive a copy of the report from the bank, look at her return, and send her a correction letter. They'll look at your return, say "what the heck?" and send you a correction letter. You'll just double the confusion.
  • If she did not file it with her return she does need to file an ammended return as the other person said. She can indicate that a portion of it is someone else's by indicating that 50% (if that is the amount that is yours) is an "nominee" payment meaning even though her social security is on the 1099 part of it belongs to someone else. It will subtract out the amount not hers and then YOU need to put that amount on your return.

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