Apportioning Income from Joint Accounts

graubart · Post by **graubart** » Mon Dec 19, 2011 10:26 pm

Two US citizens, not married but living at the same address, 35 plus years Canadian residents. Just discovered our US tax requirements. CRA considers us living common-law. We will each file as single to the IRS.

We have two joint accounts but we each fund only one exclusively, as though we each had single accounts. We made them joint mainly to avoid probate.

For CRA we each claim 100% of the income from our respective account. Can we handle the income similiarly for the IRS? Each report 100% of the income from our respective account and 0% from the other's account? While the accounts are joint accounts, they have never been used jointly.

One is a savings account, the other is a Canadian money market fund. If that matters.

Thanks so much

nelsona · Post by **nelsona** » Mon Dec 19, 2011 10:36 pm

Sure. That rule is absolutely correct for CRA. Acceptable for IRS. For FBAR it is reported as joint account.

Any particular reason you will file separately?

graubart · Post by **graubart** » Tue Dec 20, 2011 6:30 pm

We are in no danger of getting married. Are you suggesting that the IRS will accept a joint return from two people living common-law?

nelsona · Post by **nelsona** » Tue Dec 20, 2011 6:37 pm

haha. Missed that little piece of information, that you were not married. Sorry.