Who Pays Taxes on Interest Earned on a Joint Bank Account?

Sharing a bank account with a partner or relative can make it easier to manage your money together. But it can also lead to some confusion during tax season. You must report and pay taxes on the interest you earn on a deposit account. How does this work when you co-own an account? Read on to find out. Read more: Best Tax Software for 2025 Who pays taxes on interest earned on a joint bank account? The interest you earn on most standard bank accounts is taxable. That includes checking and savings accounts, CDs, corporate bonds and deposited insurance dividends. When you earn interest on a joint bank account, all bank account owners must pay taxes on their portion of it. "So if the joint account is owned by four owners equally, each would pay taxes on 25% of the interest earned in the account during the year," said Logan Allec, CPA and owner of tax relief company Choice Tax Relief. How to know how much interest you've earned Your bank or credit union should send you a Form 1099-INT ... Read full article.